what is covered by critical illness insurance

What Is Covered By Critical Illness Insurance?: Everything You Need to Know

Are you learning about the different types of insurance? Well, have you heard of critical illness insurance? 

In premise, as the name would suggest, it’s a type of coverage that compensates policyholders after they have been diagnosed with an illness of severe nature. 

In this article, we will uncover what is covered by critical illness insurance. 

So stay tuned and keep reading to learn more.

What Is It?

As mentioned earlier, critical illness insurance is a type of coverage that compensates a policyholder with a lump sum after they have been diagnosed with an illness of severe/critical nature. 

The payment can be used at the discretion of the policyholder, to either cover personal costs or health care due to their illness. This type of insurance is paid and purchased as a separate entity from a regular health policy, however, it can be often found with the same insurance providers that offer regular insurance.

Some critical illness policies are severely limited in what they cover, whereas others have a verbose list of covered illnesses.

The type of illnesses that can be covered can be found in the policy itself, and the amount received is often determined by the illness. In any case, we will provide a list of common illnesses that are covered by the policy.

How Does Critical Illness Insurance Work?

Like the majority of insurance policies, critical illness insurance requires you to pay a premium on a monthly basis, in exchange for which you receive the guarantee of coverage at the cost of being ill.

These policies can have substantial sum payments, with limits, such as $5000 – $500000. The cost of the policy itself will depend on the amount of coverage you need, as well as:

  1. Your personal risk factors
  2. Your general health
  3. Your age
  4. Whether the policy covers you, or others
  5. Whether you smoke
  6. How many illnesses are covered
  7. If you purchase the coverage separately or as a supplement to regular insurance

Some critical care policies will ask you to perform a health screening that will assess your risk level, this is done before being offered any permanent terms. Others can guarantee their coverage without extra steps, especially if you already have health insurance with the provider.

Critical illness insurance usually has a list of the illnesses covered, and additional information, such as:

  1. When you qualify for payment
  2. If there is a waiting period for a lump sum
  3. What happens if the illness reoccurs
  4. What percentage of the total amount is to be paid
  5. Definitions of conditions and diseases covered

Once the insurance provider has paid your benefit, you can use the money for health care or personal costs during treatment, such as, but not limited to:

  1. In-home care
  2. Childcare expenses
  3. Uncovered treatment
  4. Health insurance co-pays & deductibles
  5. Living expenses
  6. Transportation from/to treatment

These are all general outlines, so don’t expect your exact insurance to consist of all the information provided here. In many cases, your policy might have much more than listed here.

Do You Need Critical Illness Insurance?

We know that insurance is an investment in peace of mind and a shield against future risk, but it’s also a gambling risk. 

You might spend years paying for something you will never need. You pay for a policy that provides payments that are significantly smaller than that what you will be needing. 

In any case, a policyholder who is diagnosed with a critical illness can come across financial draught, even when in possession of comprehensive insurance. Before you consider purchasing this type of insurance, ask yourself:

  1. How likely am I to develop a covered illness in the next 5-10 years?
  2. Is anyone else in the family at risk of developing this illness?
  3. Will I be able to maintain my standards of living if unable to work?
  4. What does regular insurance cover?
  5. How can I prepare for unexpected expenses?

A less comprehensive policy plan will be more affordable, but the payout will also be less significant, in some cases inadequate of covering your expenses. A more comprehensive plan will be more expensive, but it will also provide better coverage if you do get ill.  

What Is Covered By Critical Illness Insurance?

And finally, the question that bothers most – “what is covered by critical illness insurance?”, let’s find out.

The most basic of covered illnesses are stroke, cancer, heart attack, as they are some of the most common causes leading to death.

However, comprehensive insurance will often cover many other illnesses, such as, but not limited to:

  1. Paralysis
  2. Cystic fibrosis
  3. Alzheimer’s
  4. Organ transplants
  5. Angioplasty
  6. Kidney failure
  7. Burns
  8. Multiple sclerosis

Unlike regular insurance, which will often cover the costs of medical involvement with hospitals and doctors, the critical insurance will pay you directly. You can then use this money to pay for anything you like.

Insurance Quotes for You

Now that you know what is covered by critical illness insurance, as well as everything else pertinent to the question at hand, you are well on your way to deciding whether or not, critical illness insurance is the right solution for you. 

In any case, whatever you choose for yourself, it will be the right thing to choose at that point in time. Insurance is a risk worth taking, as this is your life, and you need to make sure it’s covered. 

Life is precious, life is fragile. Take care of it. If you’re interested in getting an insurance quote, get in touch with us and we will happily accommodate your needs.

Leave a Comment

Your email address will not be published. Required fields are marked *