Always on the rise, critical illnesses are not only more common today than they were 10 years ago but they are also affecting us at younger and younger ages. The insurance companies are all too aware of these facts and are raising their critical illness prices all the time. That said it is so important for each of us to have a CI policy in place and to purchase it as soon as possible.
Critical Illness protection is called a living benefit because the benefit is paid out while you are living. If you are diagnosed with a critical illness and put in a claim with the insurance company, the benefit will be paid out to you as one large sum. You can use the money in any way you please whether it is to offset income lost, hiring caregivers, out of country care, a vacation or anything else.
Getting approved for a critical illness is trickier than getting approved for life insurance as the underwriting process is a lot stricter and the premiums are also higher. There is an elimination period with CI policies which means that the insured must survive the critical illness for a set amount of time before they can receive the benefit. The elimination periods vary from company to company and are also based on the type of illness, these periods can be anywhere from 30-120 days with most being a 30 day elimination period.
Some of the major illnesses covered by a Critical Illness Policy
Heart Attack, Life-Threatening Cancer, Stroke, Alzheimer’s Disease, Aortic Surgery, Bacterial Meningitis, Benign Brain Tumor, Blindness, Coma, Coronary Artery Bypass Surgery, Deafness, Kidney Failure, Loss of Limbs, Multiple Sclerosis, Organ Transplant, Paralysis and more.
Types of Critical Illness Policies
Like life insurance you can also choose from permanent or term Critical Illness insurance protection. For a permanent solution to CI, choose a term 100 which allows you to be covered with critical illness protection until age 100. Premiums stay level for the life of the policy. Term critical illness protection comes in a term 10, 20 and 75 years. You would only be covered for the term you choose (10,20 or 75 years) and you pay level premiums for the life of the chosen term.
If you can afford it, I strongly suggest insuring yourself and your loved ones against a critical illness. Having a CI policy gives you flexibility, financial and some stress relief while you focus on yours or your loved one’s health and recovery.
