2 in 3 Singaporeans expect recovery during their ‘health gap’ year to cost more than $200,000
SINGAPORE – Media OutReach Newswire – 29 September 2026 – 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 (“Prudential”) found that 67 per cent of Singaporeans expect recovery from a severe-stage critical illness to take more than a year. However, only 29 per cent 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 per cent) are confident they could cover both medical bills and everyday expenses during recovery. More than three in five (64 per cent) 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 per cent CI protection gap. This suggests that most people do not have sufficient protection coverage, which leaves them financially vulnerable in an unforeseen event.
Mr Manu Tandon, Chief Health & Protection Officer, Prudential Singapore, said: “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. It 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.”
These concerns are reflected in the poll where about half the respondents (46 per cent) cited medical expenses as their primary concern, while 34 per cent were worried about the loss of income and 31 per cent 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 per cent), retirement savings (40 per cent) or sell investments (33 per cent). Almost one in four (24 per cent) would even return to work earlier than planned.
Families with children may face particularly difficult trade-offs. Among respondents with children, 35 per cent identified education fees as a key expense during recovery. If they were unable to work, 24 per cent were likely to pull their children out of enrichment classes and 19 per cent 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 per cent) cited financial support as the most important form of support for caregivers, but only 13 per cent 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 per cent), ongoing daily living expenses linked to care needs (67 per cent) and rehabilitation and therapy (59 per cent).
Mr Tandon added: “Ultimately, being prepared for potential health gap years can make a difference between a recovery journey overshadowed by financial stress and one focused on what matters most: recovery and getting life back on track. Building a strong financial safety net to weather a critical illness event is crucial not only for the individual, but the whole family.”
Owning a critical illness (CI) plan does not mean adequate protection
Although more than half (59 per cent) of respondents own a CI plan, only 20 per cent 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 per cent) said a lump-sum 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.
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About Prudential Assurance Company Singapore (Pte) Ltd (Prudential Singapore)
Prudential Assurance Company Singapore (Pte) Ltd is one of the top life and health insurance companies in Singapore, serving the financial and protection needs of the country’s citizens for 95 years. As at 31 December 2025, it has S$66.3 billion funds under management. The company has an AA Financial Strength Rating from leading credit rating agency Standard & Poor’s and delivers a suite of well-rounded product offerings in Protection, Savings and Investment through multiple distribution channels including a network of 5,400 financial representatives.
