Top things to know about the Critical Illness Insurance

Top things to know about the Critical Illness Insurance

Have you ever thought about ways to financially cover yourself or your family in case of a serious disease? Well, if this crossed your mind at least once, then let’s take a closer look at what it really means to purchase a critical illness insurance and what benefits you get.

The critical illness insurance or the critical illness cover is one of the insurance policies suitable for people who want to take no risks when it comes to their future financial security. What does this policy mean? Well, every insurance company has their own list of diseases that can be included in this insurance. Should one of those unfortunate events happen to you, then you’ll get a fixed amount of money that can make your life easier.

Important details to consider

If you’re about to purchase a critical illness cover there are some things you must be aware of. Don’t rush and study attentively all the details written in the documents you receive. Moreover, when you come across something you don’t fully understand – please, don’t hesitate to ask the insurance company, in order to make sure you’re going to make the best decision for your own sake.

When are you entitled to get the finances?

First and foremost, one of the first things you should know about this policy – You don’t have to die to get the money. Otherwise said, if you ever get diagnosed with one of the critical illnesses from your policy, then the company will have to send you either a one-time payment or monthly payments (depending on the company you choose, but usually there is only one payment).

Not every disease is included!

Secondly, make sure you understand the policy information completely. Not every disease is included in this insurance. Some of the most common diseases that are included in this type of policy are:

  • HIV/AIDS
  • Heart attack
  • Stroke
  • Cancer
  • Multiple Sclerosis
  • Alzheimer
  • Parkinson
  • Loss of arms or legs
  • Kidney failure

And the list can continue, but again, this varies from one company to another, so make sure you read the policy carefully and find out the most important diseases that are listed there.

Don’t hide information

If you don’t want to have unpleasant surprises when you try to get the money from your insurance company, don’t hide information from your insurer!

Most of the times, you’ll be asked to provide information about yourself, your family or your ancestors. Depending on these results you will be granted the policy or further investigation will be required.

Factors that influence the costs

Okay, so you get the information you need and you decide that a critical illness insurance is a must for you. But what now? How much will it actually cost you? Well, there are several factors that will dictate your monthly cost, and here we’re talking about:

  • Age
  • Sex
  • Medical condition
  • Profession
  • Hobbies

But let’s take them step by step to better understand how they will affect your costs. Moreover, find out why it’s always better to get insured when you’re younger.

Age – this is usually one of the most important factors when it comes to almost any type of insurance you want to purchase as it will influence the costs. In this particular case, the younger you are, the less you’ll pay. Remember – it’s all about turning the odds in your own favor!

When it comes to your sex, some companies might be inclined to charge men higher because of their lifestyle. But this is not a general rule!

Obviously, your medical condition is of utmost importance when it comes to this insurance cover. But not only yours, you’ll also have to bring evidence related to your family. Please note, that some companies might reject your application if one of your family members (mother, father, grandmother, etc.) have passed away because of certain diseases. Why? Well, the probability that you’ll inherit that disease too increases. Ask your insurer about any doubts you have. Together you’ll find the best insurance policy for you too.

Your job can also influence the costs of your insurance policy, as some jobs can create perfect conditions for an illness to appear.

To continue, your hobbies or lifestyle are other important factors that dictate the costs of your policy. Why? Well, smoking can actually make you pay more!

Why should you purchase a critical illness insurance?

The reasons you should think about applying for this policy can be various, but let’s name the top ones:

  1. Have finances for medical treatment (you’ll need money for treatment or care)
  2. Have finances for home remodeling (if you’re in a wheelchair you’ll have to re-think the use of your house and make changes)
  3. Replace an income (you might not be able to work)
  4. Provide financial protection for your family
  5. Pay your mortgage

Can you be rejected?

Unfortunately, every insurance company has its own rules and regulations and not everyone can get insured. In what concerns, the critical illness insurance, some people can be rejected because they don’t fit the profile. But, this again, varies from one company to another, so you’ll just have to find the one that is suitable for you. If one type of insurance policy won’t fit your profile, for sure, together with your insurer, you’ll find another option!

The bottom line

It’s important to state that having a life insurance policy doesn’t prohibit you from having a critical illness insurance too. These two insurance policies can work alongside.

All in all, life can offer us many unpleasant surprises, as we’re living in this hectic environment. As a result, the best way to make sure such unfortunate events won’t outstrip your family’s budget, contact a local insurance agent and discuss the possibilities of getting this type of insurance. The good part – the critical illness insurance might actually come cheap, it only depends on your health risks and the factors named beforehand.

Don’t let life take you or your family by surprise, you have the chance to take action before dealing with dire consequences. Get informed to take the best decision for you and your family!

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