What is critical illness insurance? This is a form of insurance plan that will pay the policyholder a tax-free lump sum if they are diagnosed with a critical illness. Each policy will outline specified illnesses and medical conditions that are covered. It is important to read the terms of each policy carefully before signing on the dotted line, as certain illnesses will be covered in some policies but not in others. Examples of critical illnesses that tend to be included are multiple sclerosis, certain types, and stages of cancer, strokes, and heart attacks.
What are the benefits of critical illness insurance?
Now you know what is critical illness cover, so let’s take a look at the different reasons why you should take out this insurance policy.
- Accommodate any modifications that may be required due to the illness – Often, when someone falls ill, their home or their vehicle is no longer suitable. A lot of people need to invest in modifications to their property, including adding wheelchair ramps and mobility aids. Some people also need to widen doorways to accommodate wheelchairs, while stairlifts are not uncommon either. This all costs money, and your critical illness insurance plan will cover it.
- Income protection – Critical illness cover can act as income protection, making it especially beneficial for those who are self-employed. Unlike others, there is no sick pay or form of payout for a self-employed person when they fall ill. Thus, as they are no longer able to work, they simply do not make any money. This could leave someone in tatters financially, which is why this form of insurance is a necessity.
- Fund copays, deductibles, and additional out-of-pocket expenses – Healthcare seems to be getting more expensive by the day, and the out-of-pocket costs related to medical insurance plans continue to increase in tandem. This is something that critical illness insurance will cover, giving you complete peace of mind.
- Cover expenses that are not included in medical insurance – Not only are there a lot of out-of-pocket costs related to health insurance, but this type of policy does not cover everything that is related to treating a chronic illness. Critical illness insurance, on the other hand, does. This includes everything from hotel fees to plane tickets that are required for hospital visits for specialist treatment and such like.
- Manage ongoing payments – Do you have a mortgage? Was your vehicle purchased on finance? If you have ongoing payments, it can be extremely difficult to meet these if you have a serious illness. You won’t need to worry about this, as critical illness cover will help to foot the bill.
If you are interested in taking out this type of insurance plan, you need an expert to assist you, like Shawn Meaike. They can make sure that you end up with a policy that is financially viable while also covering you for all of the major illnesses that would make it impossible for you to work.
Most experts will advise that you take out both life insurance and critical illness cover. Life insurance will ensure that your family is protected if you pass away.