Critical illness insurance is a type of insurance that typically pays out a fixed sum if you're diagnosed with a critical illness covered under the plan - a severe or debilitating condition that requires a major surgery or results in severe disability over an extended period – that is covered by the insurance policy.
Over 90 per cent of all severe stage claims received by life insurers are for five critical illnesses:
Stroke with permanent neurological deficit;
Coronary artery bypass surgery; and
End stage kidney failure.
How does a Critical illness Insurance works?
Typically, the insured will receive a lump sum to cover those costs.
Coverage limits vary—you could be eligible for a few thousand dollars all the way up to $500,000, depending on your policy.
How much it cost?
Policy pricing is impacted by a number of factors, including:
The amount and extent of coverage,
Your profile (Gender, Age, Nationality, Habits), and
Your health and family medical history
Why you should consider a Critical Illness Insurance?
Critical illness insurance pay for costs not covered by traditional insurance. The money can also be used for non medical expenses related to the illness, including transportation, Home care, Loan, and so on.
With the lump-sum you will be able:
To pay for critical medical services that might otherwise be unavailable
To pay for treatments not covered by a traditional policy
To pay for daily living expenses, enabling the critically ill to focus their time and energy on getting well instead of working to pay their bills
Transportation expenses, such as getting to and from treatment centers, retrofitting vehicles to carry scooters or wheelchairs, and installing lifts in homes for critically ill patients who can no longer navigate staircases
Terminally ill patients, or those simply in need of a restful place to recuperate, can use the funds to take a vacation with friends or family
It is a mistake not to protect yourself against a critical illness?
Major illness comes with expenses that extend well beyond surgery and hospital stays. According to the Life Insurance Association (LIA), it takes about 5 years for a person to recover from a critical illness.
Going through recovery means dealing with exorbitant costs related to prolonged treatment, medication, or loss of income.
You should think about being well covered with the appropriate insurance protects you from financial trouble and keeps you financially afloat while you recover.