Critical Illness Insurance is a type of policy that covers you if you are diagnosed with a critical illness. The policy will pay a lump sum that can be used to pay for treatments, lost income, lifestyle changes, and items to help you recover. Several illnesses qualify for coverage by Critical Illness Insurance but some have stipulations.
Types of Critical Illness Insurance There are several different types of Critical Illness Insurance plans that you can choose from. You can purchase affordable individual plans that offer lower amounts of coverage for a lower premium. The policy can be written by individual insurance providers and usually doesn’t require very many health questions. You can purchase higher value individual coverage as well.
The higher coverage plans require more health questions and carry a higher premium. The third type of policy is available as a rider on your life insurance policy. When purchasing life insurance you can ask your insurance company if they offer Critical Illness Insurance to be added for an additional fee. This type of policy doesn’t require any additional health information than you fill out for the life insurance plan and usually doesn’t cost more than your original premium.
What is Covered several terminal illnesses are covered including Alzheimer’s disease, cancer, Parkinson’s disease, and HIV/AIDS. In the case of HIV/AIDS, it could only be contracted through an operation or blood transfusion, not through any fault of your own. You can also make claims for things such as loss of vision or hearing, paralysis of a limb, and a major organ transplant.
Although those illnesses are not life-threatening they can cause you to be unable to work. In the UK there are over forty covered illnesses as well as some that are partially covered such as early-stage prostate cancer. The list of covered illnesses is constantly changing with advances in medicine and treatments. Items that were on the approved list a decade ago may not be covered today because they are no longer incurable.
The same goes for what is currently on the list, there is no guarantee these illnesses will be covered ten years from now. In some cases, Critical Illness Insurance will directly pay the hospitals and doctors to keep the insured from having to deal with bills.
Tips for Buying Coverage When looking at critical illness insurance policies, there are a few rules to follow for your peace of mind. The first is don’t buy more insurance than you can easily afford. The best way to calculate how much coverage you should purchase is to multiply your mortgage payment by twenty-four months. The second rule is to work with a professional that has access to quotes from several different underwriters. They will help you to choose the policy that best suits your needs and budget