When you’re looking into life insurance options, you may need to consider critical illness cover (otherwise known as a dread disease policy). Not all forms of life insurance cater to this need for the policyholder, so you have to dig deep and find something that works for you.
But what counts as a critical illness? Do you have to worry about this at all?
You need to know ahead of time so you can pick the right life insurance plans and add-ons for you. You don’t want to be caught without the right coverage and leave you or your family in a poor financial situation.
We want to help. We have a brief and simple guide on critical illnesses that qualify you for critical illness cover. Keep reading to learn more.
What Do I Need to Tell My Insurer?
Just because we’re giving you a list of what critical illness does and doesn’t cover, it doesn’t mean that you should hide anything from your insurer. You can get in trouble for this and lose coverage entirely.
If you have a pre-existing condition, critical illness cover may not cover you. There are some forms that will so talk to your insurer about your needs. Don’t hide your condition.
You need to discuss a full family medical history, as well as your current health, to the best of your ability. Neglecting to mention information that you know (such as smoking, or a family history of breast cancer) may cause your insurance company to refuse to pay anything out that results from one of those conditions.
You don’t have to share this information with your agent. You send it to the insurer themself.
What Isn’t Covered By Critical Illness Cover?
There are many things that aren’t covered by critical illness cover. Even if your illness is critical, it may not qualify based on the parameters that the government and the policies set.
Terminal illnesses aren’t covered by this form of insurance. A terminal illness, in this case, is an illness in which the patient is expected to pass away within 12 months.
Certain forms of cancer also disqualify for this form of coverage, as well as other long-term illnesses that will be laid out in each individual policy. Different policies have different critical illness coverage options, so be sure to check ahead of time before making a commitment.
Many illnesses that you were already aware of (as in, you officially received a diagnosis for) before coverage began will not be covered by critical illness insurance. You need to consult with an advisor or pay special attention to the terms of the insurance policy to make sure that you don’t have a condition under this category.
What Kinds of Things Are Covered By Critical Illness Cover?
Critical illness cover does cover a lot of conditions, even if it seems as though there are too many omissions. Policies vary, so check before committing even if you anticipate one of the listed types of conditions.
If your child has one of these conditions, and they’re considered a dependent under you, they may also qualify.
Certain forms of cancer that are acquired after your policy starts will qualify under critical illness cover. Because there are several that don’t, consult with the insurance company before making any assumptions.
If you encounter a serious health event such as a stroke or a heart attack, these conditions will be covered by your critical illness cover. As will physical conditions that include multiple sclerosis.
If you receive a serious or debilitating injury that results in long-term disability, this is also covered.
Keep in mind that critical illness insurance often results in one lump payment to help you with your illness or disability. It may not continue after the disabling event.
What Else Should I Consider About Critical Illness Insurance?
Critical illness cover only applies to conditions that develop during the time that the policy is active. If you’re someone who already has a condition documented, you won’t benefit from this form of coverage.
There are also a few variables in cost depending on the person who’s asking for the coverage.
Someone who is older is going to pay more for critical illness cover. The older you get, the more likely you are to fall ill or suffer a critical and disabling injury. The insurance company weighs this and charges you accordingly.
If you’re a man, you’re more likely to pay more money than a woman for the same kind of coverage. Men make more injury-based claims and more heart-based claims, so they need more expensive coverage.
People who are in risky careers such as construction or mining will pay more for this form of coverage as the insurance companies know that it’s likely they will suffer some form of injury on the job.
If you partake in any dangerous hobbies, such as extreme sports, extreme rock-climbing, or anything else that can cause harm, your insurance is going to cost more. Also, if you drink or smoke in excess.
On the other hand, if you’re an average adult in good health who exercises often and eats well, your insurance cover will be cheaper.
What Form of Coverage Is Right for You?
Critical illness cover isn’t for everyone, but it makes a great addition to your pre-existing coverage and it protects you and your family from expensive illnesses and injuries down the line.
If you think critical illness cover is for you, it’s time to start comparing insurance quotes and finding the right policy. Check out our site to start making comparisons and get covered today.