Critical Illness Coverage Might Come In Handy When Needed
If you are given a diagnosis of a specific illness or disability, critical illness insurance will help you, as it will pay you a lump sum of money. Typically, long-term, severe illnesses like cancer, multiple sclerosis, or Parkinson’s disease are covered, as well as conditions like heart attack or stroke, arm or leg loss, and many other severe illnesses. In this article, we are going to review critical illness insurance.
What Is Critical Illness Insurance?
Having a sizable sum of money on hand to use for things like daily expenses, paying off your mortgage, or medical costs can be very helpful if being sick has left you without any money. You don’t have to use the money for a specific purpose; you can use it however you like.
If you are diagnosed with one of the conditions covered by the policy, critical illness insurance will provide you with financial support. The one-time, tax-free payment assists in covering your medical expenses as well as your mortgage, rent, and any home modifications you might require, such as wheelchair access.
While you’re ill, you may also be receiving state benefits or sick pay from your employer. This might not satisfy all of your needs, though. It’s a smart idea to consider how much you would need to make ends meet if you developed a serious illness, as well as whether you would require additional funding to supplement your current income.
Which Illnesses Are Covered?
If you develop one of the specific illnesses listed in the policy, your critical illness insurance will pay out a onetime lump sum amount. The policy expires after the one-time payout. The ailments and conditions that different insurers will cover can differ greatly.
Although some policies are significantly more constrained, the most comprehensive ones cover 25 or more different conditions. Examples of critical illnesses that could be covered by this insurance include:
- Stroke
- Heart attack
- Certain types and stages of cancer
- Conditions such as multiple sclerosis
- Major organ transplant
- Parkinson’s disease
- Alzheimer’s disease
- Multiple sclerosis
- Traumatic head injury
Most policies will also take permanent disabilities brought on by illness or injury into account. The majority of policies will also specify the severity of the condition at which a payout is eligible. For less serious conditions or if one of your children has one of the listed conditions, some policies will pay less. But not all illnesses are protected. These are typical exclusions:
- Non-invasive cancers
- Hypertension – abnormally high blood pressure
- Injuries such as broken bones
Also read: How important is it to have critical illness insurance? Honest review
What Illnesses Are Not Cover?
Before purchasing coverage, make sure to read the policy’s fine print and comprehend all of its exclusions and limitations. Depending on the policy, different critical illness conditions are covered. However, the following are some general exclusions from a critical illness insurance policy:
- Asthma
- Diabetes
- Injuries sustained in an illegal act
- Injuries sustained by substance abuse
- Injuries sustained in war
- Pre-existing conditions, though an insurance policy for critical illnesses may cover the condition later, like after the policy has been in effect for a year
- Self-inflicted injuries
Who Needs Critical Illness Cover?
For those who can obtain coverage from their employer for free or at a reduced cost, or for those who have a health plan with a high deductible and out-of-pocket expenses, critical illness insurance can be a wise investment. Alternatively, if you have a family history of a particular illness, such as cancer or heart disease, critical illness insurance can give you financial security by guaranteeing that you will receive additional financial support if you are diagnosed.
Because critical illness insurance covers a wide range of ailments, it can also be helpful for those who lack an emergency fund or worry about the financial repercussions of an unexpected medical diagnosis.
Also read: Critical Illness Insurance for Canadians in 2023 | Who Needs It?
What You Need to Know Before You Buy Critical Illness Coverage
If you file a claim, you must be aware of the exact amount you will receive. You will only receive one payment when you file a claim under your critical illness insurance policy. Depending on how much you have decided to insure yourself for, this could be a very large amount of money. If you are unable to work for an extended period or if you never work again, it might not last. Income protection insurance; however, can be available for as long as you require it.
Which conditions the policy specifically covers must be known in advance. Only a small number of very particular illnesses will be covered. Make sure you are aware of which ones by thoroughly reviewing the insurance policy documents. It is required by law that policy documents be written in clear, simple language that is easy to understand so that you know exactly what is covered.
Before filing a claim, you will need to understand just how severely disabled or ill you must be. For instance, it’s possible that early stages of common cancers won’t be covered, or that you might need to be completely disabled before receiving any compensation.
If pre-existing medical conditions are covered, you must know. You’ve previously experienced these illnesses. The medical history of your family will be taken into account by the insurers; some policies will cover pre-existing conditions, while others will not. Before you sign up for the policy, your insurer should explain any conditions that may be associated with it based on your family’s medical history.
APlusWealth Helps You with Critical Illness Coverage
Critical Illness Insurance is definitely worth looking into because medical debts are a common reason for bankruptcy in North America, especially if you have a family history of any of the aforementioned diseases. When you have critical illness insurance, you won’t have to worry as much about money if you get sick and can’t work, if you can’t pay for rent or mortgage.
APlusWealth goal is to help you with your financial security in case of an illness. We work to improve the health and financial security of Canadians, offering various insurance products from the most reliable insurers in Canada. Through our unwavering dedication to our clients, we continue to develop trust. For more information on critical illness insurance, please contact our experts at APlusWealth.