Only 15% of Singaporeans have sufficient critical illness coverage: AXA survey

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  • 1 in 2 Singaporeans feel financially prepared for the onset of a critical illness, but only 15% have critical illness coverage that meets the Life Insurance Association (LIA) that of Singapore recommended level of 3.9 times annual income.

  • A false sense of security could explain the significant lack of protection against serious illnesses in Singapore, with inaccurate knowledge as a contributing factor, as 95% of Singaporeans have one or more misconceptions about plans or critical illness coverage.

SINGAPORE, July 5, 2021 / PRNewswire / – While one in two Singaporeans (50%) between the ages of 18 and 65 reported feeling financially prepared for the onset of serious illness – such as cancer, heart attack and stroke – the vast majority do not have adequate protection. Only 15% of respondents have critical illness coverage compliant with the Life Insurance Association (LIA) that of Singapore recommended level of 3.9 times annual income.

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That’s according to a survey commissioned by AXA Insurance on Singaporeans’ financial preparedness for emergencies. The survey, conducted in May 2021 by NielsenIQ in the midst of the COVID-19 pandemic, surveyed 1,562 respondents aged 18 to 65 across a spectrum of gender, age, ethnicity and monthly household income representative of the resident population.

Of those who said they felt financially prepared for critical illness, 6 in 10 (64%) cited insurance protection as a reason for their confidence. However, 8 in 10 (79%) did not have the recommended level of protection, and 9 in 10 (92%) did not have a clear idea of ​​the amount of coverage needed to recover.

The precarious position is also observed in some key demographic data, especially with regard to household structure and type of employment. Among the only breadwinners who take financial responsibility for their family, 8 in 10 (82%) did not have adequate critical illness coverage and almost 3 in 10 (27%) said they did not. had no critical illness coverage. In addition, nearly 6 in 10 homemakers (59%) and more than 3 in 10 (35%) of the self-employed said they had no protection against serious illnesses.

“Lots of people in Singapore now know the importance of life insurance protection and critical illness coverage. With our survey, we wanted to find out if people are really prepared for the financial implications of critical illness. Not only do we have to ask ourselves “Are we covered?” but also “Are we sufficiently covered? “, said Li Choo Kwek Perroy, Chief Life Officer, AXA Insurance.

Misconceptions about critical illness coverage can contribute to a false sense of financial preparedness

The survey results revealed that inaccurate knowledge could be a factor, as 95% of Singaporeans have one or more misconceptions about critical illness plans or coverage. Common misconceptions include:

  • Critical illness insurance plans pay regardless of the stage of diagnosis: More than 6 in 10 Singaporeans (66%) believe they will receive payment from their critical illness insurance plan regardless of the stage of diagnosis, although some plans may rule out serious illnesses at an early stage.

  • Hospitalization plans will cover all needs: Over half (54%) of Singaporeans believe their hospital plan will cover all of their needs if they are diagnosed with a serious illness, despite the fact that there may be other costs such as copayments insurance, medical devices, supplements and even their daily expenses that will continue to be incurred if they have to take time off work to recuperate.

  • Critical Illness Diets Are Expensive: Overall, 7 in 10 people (72%) think critical illness insurance plans are expensive even though there are affordable options.

Additionally, among those who reported feeling unprepared for serious illnesses, 3 in 10 (31%) cited a lack of financial literacy as the reason.

Kwek-Perroy added: “The survey has shown us that there is much more we can do to educate people in Singapore on serious illnesses and the potential costs associated with treatment and the continuation of life after the onset of a critical illness. We must also continue our efforts to promote awareness of the different types of insurance plans available to meet the diverse needs of clients. At AXA, we see this as our core social responsibility. “

Improvements in critical illness insurance ownership despite the coverage gap

Despite the worrying coverage gap, more Singaporeans recognize the need for critical illness protection. Compared to a previous AXA survey of 2018, the results showed an improvement in the possession of critical illness insurance, which rose from 52% to 72%.

Overall, among the different types of emergencies, there were significantly more Singaporeans who reported feeling financially prepared for minor emergencies like daily medical needs (89%) and hospital costs (70%) , compared to major emergencies such as serious illness (50%) and death of the breadwinner (51%).

To learn more about the survey, please visit https://www.axa.com.sg/insights/2021-financial-preparedness-survey.

To learn how to prepare, check out AXA’s industry-leading suite of critical illness solutions, including the new AXA Life Treasure (II). It offers one of the most comprehensive critical illness coverages on the market, including a first-in-market benefit of an additional 50% payment when diagnosed with one of the five most common critical illnesses (major cancer). , heart attack, stroke, coronary artery bypass surgery and end stage renal disease). Visit https://www.axa.com.sg/our-solutions/personal/life.

ABOUT AXA ASSURANCE

AXA Insurance is part of the AXA group, a world leader in insurance and asset management with 153,000 employees serving 105 million clients in 54 countries. Present to Singapore since 1969, AXA Assurances has served the general and life insurance needs of individuals and companies in Singapore through a wide range of innovative products. As one of the world’s leading insurers in Singapore, AXA Insurance protects more than a third of a million customers Singapore. As a company whose business is to protect people, AXA Insurance is committed to building a stronger and safer society by enabling its customers to live better lives.

For more information, please visit www.axa.com.sg.

SOURCE AXA Insurance


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