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Critical Illness Insurance Gives You the Means and Ability to Choose Your Treatment

When considering an event that can personally and financially ruin a perfectly planned life, bad health is near the top of the list.  Although we have not yet  found a cure for death and all sickness, there is an option that can make these events less stressful. Particularity for those of us who want to preserve their savings.. That option is Critical illness Insurance!


Critical illness insurance is a type of medical insurance that pays an insured a lump sum amount ($10,000 to $70,000) when he or she is diagnosed with a critical illness. It may be a serious illness or a disabling injury. The lump sum amount can be payable to the insured or the owner of the policy. The insured and his family have the freedom to decide on the type of treatment needed the insured to recover from his or her illness. Unlike traditional health insurance which may have restrictions on the type and amount of each treatment - conventional or alternative - Critical Illness payouts do not have these restrictions. The insurance proceeds can also be used for non-medical reasons without such as paying off a mortgage, living expenses, travel and entertainment, college education and more. Bottom line, this policy can provide relief to the insured and the family when it is needed most - at the time of a critical illness (unlike life insurance). It will also help the family to spend time with the patient and to focus attention on his recovery as the cash necessary for the treatment will be available.
What can be covered under critical illness insurance?


The type of diseases covered by critical illness life insurance policies differs from company to company. The following diseases or conditions are usually covered:

  • Cancer
  • Heart attack
  • Kidney failure
  • Stroke

In some policies there may be provision to make payment on claims according to the degree of severity of the disease. All details should be in your policy. It does not hurt to ask questions before you apply! Sample polices may be available for your review.


Does everyone qualify for critical illness insurance?

No. Be prepared to answer questions and even take.  The individual's medical history and family health records are also checked and an insurance company may not be approved a person who has already been diagnosed with certain diseases. Every case is considered on its own merit. A qualified agent should be able to help you with the decision. Also, most policies do not accept individuals past the age of 65. Unlike disability insurance the type of work that you do is not much of a consideration.

Is it expensive?

Put simply, the younger you are and the healthier you are, the cheaper the policy. The amount of coverage that you need will also dictate the cost. A nice perk to these policies is the return of premium rider.

Is Critical Illness Insurance like disability Insurance?


No. Disability insurance, also known as "income replacement" insurance, provides a monthly income replacement benefit if you become disabled and can no longer perform the normal duties of your work. Generally, the benefit is limited to a percentage of your regular income and ceases once you earn an income or you no longer meet the definition of disability in the contract.


Unlike critical illness insurance which provides the full policy benefit in a lump sum payment on diagnosis of an illness, long-term disability policies may have a waiting period from the onset of disability. Unlike critical illness benefits, long-term disability benefits may be affected by other income you receive or by your full recovery from the illness

 


 


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