Table of Contents

• Cancer Insurance in Singapore: Why it’s More Important Than Ever
• What is cancer insurance?
• Income protection and lifestyle consideration when purchasing cancer insurance
• Different types of cancer coverage in Singapore
• Coverage for early-stage cancer
• The right time to purchase cancer insurance
• How much does cancer coverage in Singapore cost

Cancer Insurance in Singapore: Why it’s More Important Than Ever

In a rush? Read the summary:

• Cancer cases in Singapore have increased over the years, making financial protection through cancer insurance more important than ever.
• While government schemes like MediShield Life and subsidies cover part of the costs, private cancer insurance helps manage out-of-pocket expenses.
• The cost and need for cancer insurance depend on various factors, including age, family history, lifestyle, and financial capacity.

Cancer continues to be the leading cause of death in Singapore, accounting for nearly 25% of all fatalities, according to a report published by the Ministry of Health in July 2024. While advances in screening and treatment have improved survival rates, the financial and emotional impact of a diagnosis remains significant.  A patient may have to spend a substantial amount on medical expenses due to prolonged treatment after a cancer diagnosis and cancer insurance helps to protect against significant financial challenges by ensuring access to medical support and cancer care throughout the treatment.

What is cancer insurance?

Cancer insurance is a specialised type of supplemental health insurance that provides financial support specifically for costs associated with a cancer diagnosis, treatment, and recovery. It is designed to complement existing health insurance plans and helps cover gaps in coverage, such as deductibles, co-payments, and non-medical expenses. 

Income protection and lifestyle considerations when purchasing cancer insurance

Beyond medical bills, a cancer diagnosis can affect daily life and work. Treatment often requires extended time off, making it difficult to maintain income. For families, this can create additional stress, as household expenses continue even while a primary earner is recovering.

In such situations, cancer insurance can provide lump-sum payouts or monthly benefits to help cover living expenses, allowing patients to focus on recovery rather than financial pressure. This safety net is particularly relevant in Singapore, where dual-income households often rely on both earners to manage mortgages, school fees, and day-to-day expenses.

Types of cancer coverage in Singapore

Multiple coverage options are available in Singapore to cater to diverse risk profiles, financial situations, and cancer care needs.

• MediShield Life: This is a mandatory government health insurance plan for all Singaporeans and permanent residents that covers substantial hospital bills and selected costly outpatient treatments in public hospitals at subsidised rates.
• Integrated Shield Plans (IPs): These are private insurance plans that enhance the coverage of MediShield Life. They offer additional benefits such as higher-class wards, a range of treatment benefits, and coverage for private hospitals.
• Riders: Riders are optional add-ons to IP. They offer further coverage for specific needs like deductible amount coverage, copayment reduction, alternative therapies, or outpatient treatments.

Coverage for Early-Stage Cancer

Early detection greatly improves outcomes and reduces long-term treatment intensity. Screening programs for breast, cervical, and colorectal cancers have detected thousands of cases at early stages in Singapore. Some insurance policies extend coverage to early-stage cancers, providing financial support to access timely treatment and reduce the risk of more complex procedures later.

The right time to purchase cancer insurance

The right time to purchase cancer insurance is as early as possible, ideally when you are young and in good health.

It’s necessary to take into consideration the below factors when purchasing cancer insurance:

• Family history
• Life stage and age
• Financial capacity and planning integration
• Risk factor assessment on one’s lifestyle habits, such as smoking and heavy alcohol drinking, to name a few

How much does cancer coverage in Singapore cost

Cancer insurance costs vary depending on factors such as the sum assured, the level of coverage, health status, specific features of a policy, as well as the policyholder’s family medical history. The cost of the premium also depends on the specialised nature of the cancer coverage.

• Younger individuals typically pay lower premiums due to their lower statistical cancer risk profile.
• Medical underwriting evaluates family cancer patterns and genetic predisposition factors. It can affect individual risk assessment.
• Lifestyle factors such as alcohol consumption, exercise, diet habits, and smoking status also influence premium calculations.
• Due to different cancer risk profiles and different screening recommendations for both men and women, gender may also influence cancer insurance pricing.

Cancer insurance is not about expecting the worst; it’s about being prepared.  For anyone concerned about the potential financial impact of a cancer diagnosis, it provides financial resilience, access to timely care, and peace of mind for both individuals and their families. By understanding your options and planning ahead, you can ensure that a serious health challenge doesn’t become a financial crisis.

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FAQs on cancer insurance:

1. Is cancer insurance different from critical illness (CI) insurance?

Both critical illness insurance and cancer insurance provide financial protection against a serious illness, such as cancer. While critical illness insurance covers a wider range of diseases, including stroke, heart disease, and cancer, cancer insurance is specifically designed to cover cancer-related expenses. Additionally, critical illness insurance typically provides a lump sum to the policyholder upon diagnosis, whereas cancer insurance offers either a staged payout or a lump sum, depending on the chosen plan.

2. What is not covered under cancer insurance?

The policy usually does not cover preexisting conditions diagnosed before policy purchase. Also, one should check if skin cancers and HIV/AIDS-related cancers are also covered in the policy before purchasing a plan.

3. How does one claim cancer insurance benefits?

One can submit medical reports and doctor certifications that confirm the diagnosis and pathology results to claim cancer insurance benefits. Insurers typically assess whether the diagnosis meets the policy’s definitions before approving payouts.