A news survey has revealed that recovering from a critical illness (CI) can take far longer than many Singaporeans expect, yet few are financially prepared for the journey.
A poll by Prudential Singapore found that 67% of Singaporeans expect recovery from a severe stage critical illness to take more than a year. However, only 29% say their savings could cover household expenses for that long if they had no income during recovery.
The findings highlight the challenges of what Prudential terms "health gap years" – the period when individuals may be unable to work while recovering from a critical illness such as cancer, heart attack or stroke, even as ongoing household expenses, caregiving costs and financial commitments continue.
Concerns over the cost of recovery are reflected in the poll as only one in five Singaporeans (20%) are confident they could cover both medical bills and everyday expenses during recovery. More than three in five (64%) estimate they would need more than S$200,000 to cope with the financial impact of a severe-stage critical illness.
The findings are aligned with the Life Insurance Association (LIA) 2022 Protection Gap Study that reported a 74% CI protection gap. This suggests that most people do not have sufficient protection coverage, which leaves them financially vulnerable in an unforeseen event.
Prudential Singapore Chief Health and Protection Officer Manu Tandon said that many people recognise that recovery from a critical illness can take a long time, yet they may not be financially ready when it happens. “Critical illness is not merely a medical episode and can have far-reaching emotional, financial and physical implications for patients and their families, long after they leave the hospital. This may include the patient’s loss of income, the strain of additional expenses, and greater demands on caregivers,” he said.
These concerns are reflected in the poll where about half the respondents (46%) cited medical expenses as their primary concern, while 34% were worried about the loss of income and 31% about burdening their family.
Critical illness can impact long-term financial goals
Beyond immediate healthcare expenses, respondents expect CI to affect their long-term financial security. If they run out of funds during recovery, they are most likely to draw on their emergency funds (53%), retirement savings (40%) or sell investments (33%). Almost one in four (24%) would even return to work earlier than planned. Families with children may face particularly difficult trade-offs. Among respondents with children, 35% identified education fees as a key expense during recovery. If they were unable to work, 24% were likely to pull their children out of enrichment classes and 19% would dip into education funds.
Caregiving costs represent a major blind spot
The poll also found that many Singaporeans may be underestimating the financial impact of caregiving during recovery. For most families, the financial strain will deepen when caregivers leave work to provide care. Almost 3 in 4 (72%) cited financial support as the most important form of support for caregivers, but only 13% believed their household would have enough savings if a caregiver stopped working to care for them.
Respondents also identified caregiving-related costs that could arise during recovery, including costly drugs and alternative treatments (71%), ongoing daily living expenses linked to care needs (67%) and rehabilitation and therapy (59%).
Owning a critical illness (CI) plan does not mean adequate protection
Although more than half (59%) of respondents own a CI plan, only 20% are confident that they have adequate coverage to sustain them through recovery.
CI insurance is designed to provide a lump sum payout that will help policyholders manage income loss and additional expenses, and it supplements hospitalisation insurance that pays for medical bills incurred from hospital stays. Nearly nine in 10 respondents (88%) said a lumpsum CI payout would be important in helping their families manage caregiving expenses and income loss during recovery.
Said Mr Tandon: “This indicates that consumer awareness and ownership of a CI plan do not necessarily translate into a sense of financial security. Closing the protection gap would require consumers to assess if their coverage is enough to support them and their families throughout the health gap years. Besides the sum assured, understanding the breadth of coverage and types of illnesses covered under your plan is important as there are different types of plans available.
This is why it is important to do regular reviews with your financial representative to ensure your coverage continues to meet your needs through the years.”
The poll commissioned by Prudential surveyed 1,000 Singapore residents aged 18 to 55+ from June to July 2026. The study explored how prepared Singaporeans are for their potential "health gap years" and examined gaps in financial preparedness, caregiving support and understanding of CI protection.