Critical Illness insurance is a product that is not very well known by the consumer and therefore is considered the most overlooked type of insurance that an individual may take out. Often referred to simply as Critical Illness Cover, this is an insurance policy that pays a lump sum of money to an individual suffering from a life-threatening disease that is listed in the insurance policy as critical illness.
Critical Illness Insurance will pay the cost of the medical treatment, but if you are actually suffering from a critical disease, your chances to get this type of insurance are practical null. This type of coverage involves a waiting time (called survival period) after an individual has taken out a Critical Illness insurance policy. Thereafter, if he or she develops a critical illness the insurance company will make the critical illness policy effective, but this will not happen when an individual has a pre-existing medical condition or the critical illness occurs during the waiting time stipulated in the policy.
Do Not Wait Until Your Health Is Deteriorated
One main reason that Critical Illness insurance is often overlooked is the fact of thinking that this kind of coverage is only for people who are prone to get sick sometime soon or when a member of their families suffered from a critical illness that could be inherited. However, the true fact is that the best moment to take out Critical Illness Insurance is exactly when people are healthy, regardless their chances to suffer from a critical illness.
Nobody can predict what is going to happen with their life and even if their medical history and that of their family is excellent, a sudden injury at the work place could be the root of a life-treating illness that may cause the type of illness that this insurance covers. Therefore, getting Critical Illness insurance is protecting your family in case you could no longer work.
Full Payout for the Most Costly Illnesses
This is something that you should keep in mind; the insurance companies usually pay in full the cost associated to four critical illnesses that may come naturally with aging, living factors and even environmental conditions, no matter what your actual health condition are cancer, stroke, heart attack, and coronary artery bypass surgery. Now, you can see that being an individual with a fragile health is not a determining factor to buy Critical Illness insurance.
This is Not an Alternative to Life Insurance
Many people believe that a Critical Illness Insurance Policy will provide them with the same protection that a Life Insurance policy provides. However, this is a wrong perception. Critical Illness coverage is a policy that pays for those days that you cannot work due to a medical condition that requires specialized attention due to its critical nature, preventing you from working as you regular would.
It will not pay any proceed to a beneficiary nor funeral expenses, just the treatment of the critical disease based on the terms that are included in your insurance policy. Thus, it is advisable to buy Critical Illness insurance to extend the benefits of your life insurance policy, but not as a “stand-alone” alternative.