Understanding Critical Illness Insurance
What is Critical Illness Insurance?
Critical illness insurance, also known as catastrophic disease insurance, provides financial protection in case of serious medical emergencies like cancer, heart attack, or stroke.
Why Do You Need It?
Standard health insurance may not cover all costs of treating such illnesses. Critical illness insurance pays cash benefits to cover expenses not covered by health insurance.
How Much Does It Cost?
Cost is relatively low, but coverage is limited to specific illnesses. Policy limits range from thousands to $100,000. Pricing depends on coverage, age, health, and family medical history.
Exclusions
Exceptions include certain tumor types and prolonged illnesses. Coverage may end at a certain age.
How to Purchase It?
Critical illness insurance can be bought independently, through employers, or as a rider to a life insurance plan. Read the policy carefully to understand terms. In times of serious illness, you don't want to worry about your plan.
Difference Between Life Expectancy Insurance and Critical Illness Insurance
Both provide tax-free lump sums. Life insurance pays at death, while critical illness insurance pays if you fall ill with covered conditions.
Which Policy Do You Need?
Life insurance is for dependents' financial support after you're gone. Critical illness insurance pays out if you fall seriously ill, covering lost income and medical costs.
Can You Have Both?
Yes, you can have both life insurance and critical illness insurance. They can be bundled for added protection.
Cost Comparison
Critical illness insurance costs more due to higher claim likelihood. Cost depends on factors like coverage, age, and health.
Before You Purchase Critical Illness Insurance
- Know claim amount.
- Understand claim eligibility criteria.
- Check coverage for pre-existing conditions.
Providing Data to Your Insurer
Provide full medical history for you and your family. Consider sharing sensitive information directly with the insurer's medical officer.
Acquiring Critical Illness Insurance
Seek guidance from a consultant. Compare policies and prices through companies or comparison websites. Be aware of limitations from mortgage lender policies.
Costs of Critical Illness Insurance
Costs vary based on age, gender, fitness, work, and interests. More expensive than life insurance due to higher claim likelihood.
Why Critical illness insurance is important
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