critical illness insurance

The Need to Know Pros and Cons of Critical Illness Insurance

Are you considering getting critical illness insurance, but you’re not sure if it’s going to work for you and your needs? Whenever you consider a new insurance policy, you need to think about both the positive and negative aspects that come with that particular type of insurance.

That’s where we come into play because we’re going to detail for you both the pros and cons. By the time you’ve finished reading this article, you’re going to have all the information you need to move forward with securing your critical illness insurance. 

Don’t stop reading now continue through the entire article. 

What’s Critical Illness Insurance?

If you are diagnosed with an illness that meets the requirements set for critical illness insurances, then you can receive a settlement to help with your finances during the time that you’re ill. When you’re considering critical illness insurance for your illness, you need to ensure that it’s covered under the insurance umbrella.

Most illnesses are covered because critical illness insurance covers up to 60 types of illnesses. When you get the coverage, you need it can help to reduce the amount of stress you have when it comes to taking care of yourself and your family—as well as continuing to pay for medical care.

Now that you understand what critical illness insurance is, let’s get into some of the cons then we’ll get into what makes critical illness insurance worth it.


When you think of purchasing an insurance policy, you’re going to want to search for one that fits within your budget. But, that may not be the case when you’re applying for critical illness insurance.

When you get critical illness insurance, it’s going to be on the higher end when it comes to policy, and some factors can change how much you pay yearly. Factors that will alter the price of your policy include the following:

  • Age
  • Gender
  • Body mass index
  • Family history
  • Current and past medical history
  • Level of alcohol consumption
  • Smoking status

When you answer these questions on your application, you’re going to need to be honest and understand that after your answers have been provided with your application will then undergo a process known as underwriting. All of these things will be taken into consideration then you’ll receive notice of whether you’ve been awarded the insurance coverage that you were looking for and applying for.

Excluded Illnesses

When you think about the variety of illnesses that are covered by the insurance policy, you may be hopeful that your illness is covered. But, that’s another one of the drawbacks of this particular type of insurance is that the coverage may not cover your illness.

And even if the policy does cover your illness depending on the factors listed above, each policy won’t offer the same type of coverage. You need to take the time to meet with an insurance agent and talk about what your best options are when it comes to getting the best coverage possible.

Speaking with a specialist is also beneficial because they can explain the parts of the insurance policy that may be challenging to understand. Those are the cons that you need to be aware of, and now it’s time to get into the pros of having critical illness insurance.

Tax-Free Payout

When you receive settlements in other areas, the settlement will likely be taxed. Meaning that the amount you initially thought you would receive will change once the government has taken their cut out of your check.

But, one of the benefits of using critical illness insurance is that the lump sum you’re given is going to be tax-free. You don’t have to worry about the government taking any of the money you need to continue taking care of yourself and your family.

You’ll receive the entire amount you need and be able to use it for the things you need as you continue to deal with your illness.

Received in Lump-Sum

Again when you are awarded money in things like legal settlements or the lottery, you may have to receive the payments in instalments. This means that every month or couple of months you’ll be sent another payment and these payments will continue until the entire sum has been paid.

The benefit of having critical illness insurance is that you’ll receive your money in one lump sum. You won’t have to wait for the next payment to get bills paid or take care of other issues. You will have all of the money at your disposal to take care of the things that you need to take care of.

But, be aware that, once the money is gone, that’s it. You’re not going to get anymore. Therefore, you need to ensure that you use the funds wisely and take care of the things that you need to take care of first.

Do I Need Critical Illness Insurance?

When it comes to deciding if you need critical illness insurance or not, all you’ve got to do is reread this article and assess all of the pros and cons that we’ve listed. Knowing both the negatives and positives that an insurance policy has to offer, you will help you to make the best decision going forward.

If you’re looking for critical illness insurance coverage, get your free quote today. Don’t waster any more time and let us help you get the coverage that you need as you continue to fight this illness. Our experts are waiting to help you and your family.

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