Critical illness insurance is a type of coverage offered by insurance providers that will pay out a lump sum when you are diagnosed with an illness specified in their list of “critical illnesses” – such as cancer, heart attack, stroke, and so forth.
Even if you have health insurance through your employer or other providers, a critical illness policy may offer extra coverage for unforeseen catastrophes. But before you buy any policy from a company or agent, make sure to read these seven important things about critical illness insurance first!
1) What is a critical illness policy?
A critical illness policy pays you benefits when one of the above-mentioned injuries or diseases strikes. The amount typically depends on your age and salary, but there are also other factors that can affect how much you receive as payment for the loss of income caused by an injury or disease.
2) Insurance policies are not all the same
Critical illness insurance is not such a complicated policy, and there’s no such thing as a one-size-fits-all policy. Some cover only specific illnesses like Alzheimer’s disease and Parkinson’s Disease, while others offer coverage for general critical illnesses that can include cancer or heart attack –whatever the insurer defines as critical.
3) When should you buy critical illness insurance?
You can’t think about buying a policy retroactively since the benefits take effect only when you become ill. If your employer doesn’t offer it through their group plan and if your income is too high to qualify for government assistance, then consider shopping around on your own or with an independent agent who can offer you quotes from a variety of carriers.
4) What constitutes a critical illness?
A critical illness is a disease that could lead to death. It could be the result of a chronic condition like diabetes. Some injuries are more life-threatening than others; for example, cancer, or heart attack.
5) Coverage is not just for the rich
Many people believe that critical illness coverage only benefits wealthy folks who need to protect their assets due to a major medical event, but in truth, those with less income can also benefit from protection. The amount you’ll get varies by company and policy, so it’s important to do your research and find the right coverage.
6) What are the advantages of a critical illness policy?
Critical illness policies assist you to pay off costly medical expenses for critical illness. If you are diagnosed with a critical illness that meets policy requirements, you will get a lump sum or staggered amount to cater to the medical expenses. With this, you get more comprehensive coverage at a lower rate as opposed to standard medical coverage.
A critical illness policy is a type of insurance that pays you benefits when one of the above-mentioned diseases strikes. The amount typically depends on your age and salary, but there are also other factors that can affect how much you receive as payment for the loss of income caused by a disease.