Do I Need Critical Illness Insurance

What is Critical Illness Insurance ?

Critical illness Insurance: What Is It? Who Needs It?

Critical Illness Insurance is the plan that protects you in the event of a future major illness diagnosis. This type of plan supplement existing health insurance coverage with extra funds that meet the demands that come with critical illness health emergencies.

Critical illness insurance provides you with a lump sum of money if you are diagnosed with certain illness or disabilities.

The kinds of illnesses that are covered are usually long term and very serious conditions such as heart attack or stroke, loss of arms or legs, or disease like cancer, multiple sclerosis or Parkinson’s disease.

If being ill has left you out of pocket, it can be really handy to have a large sum of money to spend on things like everyday expenses, paying off your medical expenses. You many have other income in while you’re I’ll such as state benefits or sick pay from your employer. 

However, this will not cover all your needs. It’s good idea to think about how much would need to live on if you became seriously ill and whether you would need some extra money to boost your income. There are other types of illness insurance you can take out such as an income protection insurance.

Examples of critical illness insurance

Critical illness insurance can also cover:
  • Coma
  • Paralysis
  • Loss of hearing
  • Loss of vision
  • Loss of speech
“Is critical illness insurance worth it”, when looking at the question, it’s evident that the money provided is of great benefit to your peace of mind and financial stability during a major illness.

Pre-existing conditions and health conditions does not cover by critical illness insurance.
Conditions causes by:
  • Diabetes
  • Injuries that are there result of substance abuse
  • Injuries received in war
  • Injuries sustained during the commission of an illegal act
  • Self infection injuries
  • Asthma 

Which Critical Illness Qualify For Insurance?

Coverage is usually limited to medical crisis involving heart attack, stroke, renal failure, cancer, paralysis, and a few others. Each plan has a specific list, which varies from plan to plan.

Pros of Critical Illness Insurance

Critical illness insurance provides a lump sum of money when you are diagnosed with an illness covered under the policy. The payout can be spent on any needs, including non medical expenses such as mortgage payments, transportation or equipment or even vacation while you recover. The premiums are low and affordable, compared with those of a typical health insurance policy.

Critical illness policies were first offered in the United States during the 1990s, and more than 600,000 American now have critical illness protection in excess of $11.5 billion dollars. It comes in the form of financial support during a catastrophic health event. They’re inexpensive, yet provide financial protection that can replace most or all of an annual salary. In the event you have to use the coverage, you can use the money for anything you like, including paying for mortgage payments, even credit card bills. There are no restrictions on the use of the money once you’ve received the funds.

Cons of Critical Illness Insurance

Some types of cancer may not be covered and chronic illness are frequently exempted. Recurrence of a critical illness, such as a second stroke or heart attack, may not receive a payout. Coverage might end or be reduced when the insured reaches a specific age. It is important to note the particular circumstances under which a policy covers a conditions, as some critical illness policies stipulate narrow restrictions.

Disadvantages of critical illness insurance are the low limits of coverage, no coverage of pre-existing conditions, and premiums costs that increase with age. Most plans offer a coverage limit of $50,000, which sounds like a lot of money upfront. However, the cost of treatment for many illnesses frequently reaches amounts higher than the average critical illness plan.

What Does Critical Illness Insurance Provide For Assistance?

Critical illness insurance can help fund the bills that life threatening illnesses illnesses like heart attack, stroke, or cancer can incur. At your discretion, the benefit from  a critical illness policy can cover anything from medical expenses not covered by a healthcare policy to household bills for utilities, rent or mortgage payment, or grocery bills.

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