Critical illness insurance covers medical emergencies such a heart attack, stroke, or cancer and pay out cash to help cover overruns where ordinary health insurance may fall short.
Critical illness insurance is a type of insurance that covers you should you fall seriously ill or injured unexpectedly. It offers protection for various medical emergencies, such as stroke, heart attack, and cancer. Since these conditions frequently result in a high medical cost, traditional health insurance may not cover them. With critical illness insurance, you will receive a payout to help cover out-of-pocket expenses resulting from the treatment of a severe illness. It will help in reducing the financial burden of ongoing treatments and other recovery-related costs of the patient.
Most people believe that life insurance will cover their family’s needs if they die suddenly, but suffering from a critical illness or long-term disability can be just as financially devastating. If you have dependents who rely on your income, you might want to consider getting critical illness insurance.
The medical conditions that critical illness insurance cover varies from one policy to another and between insurance companies. Some insurance companies include 30 ailments. Others may include more than 60 ailments.
Below are some of the major ailments covered under most policies:
It is important to remember that even if your illness is on the list, the severity or permanency of the condition determines whether or not you get a payout. For example, some insurers won’t cover certain forms of cancer since they are easily treatable, thus not seen as a significant threat. Some insurers won’t pay a claim for cancer until it has reached a specific stage as well.
Many people believe that critical illness insurance is unnecessary because their traditional health insurance plans cover all medical expenses, there’s much more to critical illness insurance that will greatly benefit you in the future. Below are some of the main benefits of critical illness insurance:
Serves as a source of income Critical illnesses will not only affect the individual physically but also have a significant financial effect on the family as well. A critical illness policy pays a lump sum payment that can be used to cover medical and household costs expenses.
Provides peace of mind Critical illness insurance provides peace of mind because one can now focus on medical care rather than worrying about funds for medical and household expenses.
Provides tax advantages The payout for critical illness is tax-free.
Includes care received in a foreign country A fixed amount is charged on the diagnosis of a critical ailment under a critical illness insurance plan, regardless of whether the care takes place abroad. It means that if you need to go overseas for medical treatment, the policy will assist you.
“Each health insurance policy has different coverage, which may or may not cover treatments for serious illnesses. Critical illness insurance will provide you with a lump sum payment to cover your expenses.”
You may buy critical illness insurance on your own or through your company. You may even save money by combining it with your existing life insurance plan. Companies have been eager to add these programs because they know that workers are concerned with high out-of-pocket costs associated with a high-deductible plan.
One of the most important aspects of critical illness insurance is that the funds can be used for a number of purposes, including:
If you can’t afford the costs of daily life and medical bills without assistance, critical illness insurance is a must.
As mentioned before, most traditional health insurance won’t cover the treatment costs of severe illnesses. Besides, it will not replace your income if you got sick unexpectedly and you cannot work because of long-term illness or disability.
You should definitely consider getting critical illness insurance if:
Not having sufficient funds is one of the most frightening things when battling critical illnesses. There is actually no standard rule to decide how much sum insured you should take. However, you should decide it as per your income, age, and lifestyle.