24/03/2022
𝐓𝐡𝐞 𝐁𝐞𝐬𝐭 𝐚𝐧𝐝 𝐖𝐨𝐫𝐬𝐭 𝐖𝐚𝐲𝐬 𝐭𝐨 𝐂𝐡𝐨𝐨𝐬𝐞 𝐂𝐫𝐢𝐭𝐢𝐜𝐚𝐥 𝐈𝐥𝐥𝐧𝐞𝐬𝐬 𝐈𝐧𝐬𝐮𝐫𝐚𝐧𝐜𝐞
When you have a family member or loved one with a chronic illness, it can be difficult to think about the financial implications of caring for them. You want to do everything you can to help them, as well as to provide for their needs and keep them as healthy as possible.
Critical illness (CI) insurance is a type of insurance that can help you provide a large portion of the financial burden associated with these illnesses. It can alleviate the financial burden on you and your family when the worst happens.
But how do you choose the right CI policy? And what are the best and worst ways to get CI coverage?
This guide will explain the ins and outs of critical illness insurance and help you understand the different types of coverage available.
𝐖𝐡𝐚𝐭 𝐈𝐬 𝐂𝐫𝐢𝐭𝐢𝐜𝐚𝐥 𝐈𝐥𝐥𝐧𝐞𝐬𝐬 𝐈𝐧𝐬𝐮𝐫𝐚𝐧𝐜𝐞?
Critical illness insurance is a type of insurance that provides a lump sum payout from the insurance company when a pre-defined critical illness diagnosis is received. The money from the payout can then be used to pay for expensive treatments, surgeries, or other care related to the illness.
There are many different types of critical illnesses that you can choose coverage for. The most common are cancer, stroke, heart attack, kidney failure, and major organ transplantation.
𝐇𝐨𝐰 𝐂𝐚𝐧 𝐂𝐫𝐢𝐭𝐢𝐜𝐚𝐥 𝐈𝐥𝐥𝐧𝐞𝐬𝐬 𝐈𝐧𝐬𝐮𝐫𝐚𝐧𝐜𝐞 𝐇𝐞𝐥𝐩?
CI can help cover the costs that arise from major illnesses. Its main purpose is to give you financial cushion in the event of catastrophic medical condition, especially as an income replacement due to loss of income. Why so? Because in most cases, people who suffer from critical illness may have to quit their jobs to focus on their health and recovery.
If you are a parent, you should consider getting a CI policy not just for yourself, but for your spouse and children as well. If any family member suffers from a critical illness, chances are, you are going to sacrifice your job so that you can take care of them full time. In this case, the payout from CI policy will give you a sum of money as a replacement for leaving your employment.
There are also expenses related to special needs for illnesses such as assisted living or equipment, that are not covered under your hospitalization insurance. CI policy can definitely alleviate these financial burden.
A CI policy covers these costs as long as the illness is one of the covered types of illness. Examples include heart attack, cancer, stroke, chronic lung disease, and many more.
Critical illness insurance only provides coverage if you meet certain criteria and has exclusions (which we will discuss in detail below). It is not designed to cover routine illnesses or injuries unrelated to chronic health problems like a broken arm.
𝐓𝐡𝐞 𝐁𝐞𝐬𝐭 𝐚𝐧𝐝 𝐖𝐨𝐫𝐬𝐭 𝐖𝐚𝐲𝐬 𝐭𝐨 𝐆𝐞𝐭 𝐂𝐫𝐢𝐭𝐢𝐜𝐚𝐥 𝐈𝐥𝐥𝐧𝐞𝐬𝐬 𝐈𝐧𝐬𝐮𝐫𝐚𝐧𝐜𝐞
There are many types of critical illness insurance policies. The best policy for you will depend on your needs and your budget.
Here are some of the different types of policies available:
-Term CI policies insure you against a specific list of conditions. These policies typically have lower premiums, but they only cover illnesses that have occurred by the end of the term. This is usually in 10 years, 20 years, 30 years, or until you reach a certain age, like 65, 75, or 100.
-Critical Illness Coverage rider in Investment-linked Policies (ILP). This is a great way to get yourself protected while accumulating cash value on your policy. Some of the best critical illness coverage in the market today are CI riders found in ILPs. They typically come with longer list of conditions covered, multiple claims allowed, and covers early stage conditions as well. Some even give additional coverage for relapsed conditions.
And although, non-guaranteed, the growth of cash value can potentially help you “get your money back” after certain period, whether you have claimed the CI payouts or not.
𝐁𝐨𝐭𝐭𝐨𝐦 𝐋𝐢𝐧𝐞
Choosing CI coverage can be intimidating and laborious. Talk to a financial consultant who can break things down for you so that you can fully understand them. It can be difficult to understand all of the options available, as well as what you need in order to provide for your family when the worst happens.
Remember that there are many factors that go into determining the best policy for you, but these considerations will help you make an informed decision.
