Critical illness insurance is a relatively new type of politics that is often misunderstood. Today it will clarify what it is and what it covers.
How does critical illness insurance work?
Critical illness similar to term life insurance, except that the payout if policies are affected by the disease diagnosed, instead of being paid after death. However, some people confuse this kind of insurance disability insurance to replace your income if you are disabled.
illness insurance than term life insurance, will be paid in a lump sum should you be diagnosed with pre-defined by a disease such as cancer. You decide how this amount will be spent – some put further medical treatment (especially if there are some treatments that are not covered by the provincial health), others decide that the time off work to spend with the family, or tour .
Like many insurance products, this type of insurance plan is an extensive insurance quote, application and underwriting process that analyzes the insurance company before you get a policy; and as with all insurance, critical illness policy comes with both advantages and disadvantages.
Let's take a closer look at the pros and cons of this type of insurance.
Arguments for critical illness insurance
There are many positive aspects:
- funds to help if needed: receives a lump sum if you are diagnosed critical illness allows you to better treatments and hopefully a fully recovery in some cases. They also spend these funds for other needs or projects (such as travel or taking items off the bucket list).
- protection of their business: If you own a business, you may need to work part-time, after being diagnosed with a critical illness (reduced working hours are common, where a wide range of medical treatment is required). This will close the financial gap created by the reduced hours in the company. The funds, you can hire someone to help businesses.
- protect each other Unlike disability insurance, critical illness coverage is "stackable". The disability insurance, coverage is limited because it is based on your income and you will not go over this limit, even if more than one disability policy. It can, however, be more policy coverage amount varies in different diseases. For example, if two political benefits $ 250,000 and $ 300,000, you get a $ 550,000 payout when a claim.
disadvantage of critical illness insurance
- Dear This type of insurance is not cheap. As an example, the Term 10 insurance policy is $ 500,000 coverage (Term 10 policy which implies that in 10 years) a 35-year-old, pre-conditions and without non-smoking men costs about $ 180 / month (as an example quotations), while a Term 10 life insurance coverage $ 1 million, the same person costs about $ 50th
- Definitions matter: If you are diagnosed with an illness such as a heart attack, not aligned with the definition of the illness, the policy, the claim can not be paid.
- does not cover the immediate policy is typically a waiting period (eg 90 days), during which does not cover.
- payment is not immediate: If you are diagnosed with a critical illness is "survival time" – (eg 30 days). If you die within that period, the claim is not paid.
Summary
Critical illness insurance provides solid coverage is unexpectedly diagnosed with a serious illness, but it comes at a cost of coverage. It's a good idea to work with an insurance agent to get a quote and apply critical illness insurance policy. Brokers have access to many insurance companies, and help you navigate through the complicated application process, especially when the medical prerequisites.