According to the LIA, a useful rule of thumb is to hold critical illness coverage worth around four times one’s annual income. This aims to cover medical expenses, living costs and income loss during recovery. But knowing the amount alone is not the whole story. Timing matters, too. “Premiums rise with age, and once a health issue appears, it can be harder or even impossible to get covered,” Mr Tan said.
Younger adults, in particular, often prioritise short-term goals such as holidays or home ownership and may overlook critical illness coverage because they feel healthy. Planning earlier and maintaining protection over time helps narrow the protection gap and strengthens long-term financial resilience.
*This product is underwritten by Singapore Life Ltd.
