Many of us think about life insurance but how many of us think about the importance of asking, “Why buy critical illness insurance?” It is about giving ourselves peace of mind that we have covered all medical eventualities and completely protected our family financially. To arrange this kind of insurance, it is as easy as looking up one of the online companies that offer the service. For an overview, this article will define and explain what we mean by this type of insurance policy and then go on to talk about the critical illness insurance pros and cons.
How Do You Define Critical Illness Insurance?
A critical illness insurance will provide extra cover in relation to what can described as medical emergencies. In exchange for budgeting a small amount each month, the head of the household and other members that a family rely on for financial support, can be covered should serious illness hit the insured members of a family. These types of illnesses often come without warning and so, if not prepared for them, they can result in significant shortfalls to a family’s income and finances. These can be temporary or long-term shortfalls and for months, even years, to come.
What types of illnesses are covered and How am I Covered?
Critical illness insurance will cover heart attacks, strokes, or cancer. Medical conditions that require someone to spend a considerable amount of time incapacitated and leave them unable to carry out their work. In some cases, temporarily. In others, never able to fulfil that same role again. These are the illnesses which incur the greatest medical costs. By having critical illness insurance, you will have a policy which will pay out, in most cases a lump sum of cash to you, to help with these medical costs. It will bridge the gaps of what any traditional health insurance is likely to cover. It helps people and their families to survive financially when the unthinkable happens.
What are the pros and cons?
One of the advantages of critical illness insurance is that a lump sum can be paid out which is tax-free. The policy can be combined with life insurance so that you have the other medical eventualities covered. The financial payment will allow you time to recover and obtain treatment. Some of the policies will also pay out should your children become critically ill, as this would present a financial burden too, and at a time that would already be traumatic. In addition, critical illness insurance takes away the worry of the future and its uncertainties.
The only thing to be aware of is that the policy covers the main illnesses, so that you have complete cover. This is down to choosing a good company and the right plan. Then, there is the cost, of course. It is another amount to factor into the family budget, but then it is for a small amount in comparison to what financial disaster could result, if not allowed for. So, it is well worth considering it while in good health and everything seems to be going to plan.
For an interesting article to read on health insurance in general, click here.
In conclusion, critical illness insurance is a useful addition to the health insurance market. It protects individuals and families against the unpredictable. It means that the family spending can continue even if the worse should happen. That there will be no major disruption to income, lessening what would already be an upsetting event on its own should it occur. The uncertainly of the future can create anxieties and you cannot put a price on the feeling that can be obtained from knowing that everything financially is taken care of.