In this article, we will discuss what is critical illness insurance and is it worth it. Also, we will discuss what the things covered in critical illness are and why should you take critical illness.
What is critical illness insurance?
Critical illness insurance is like a safety vest that you can to wear to stay safe from any losses. This means that these kinds of insurance are taken to protect yourself from heavy losses. The insurance will policy will stop you from paying a lump sum amount on the diagnosis.
The only thing is that the policyholder needs to survive at least one month after taking the policy. This is because some people know they are about to be serious and take policy immediately. They do this because they want instant money to pay for their medical and hospital bills. This is why the companies have made it a rule that one should stay alive for a month after taking the policy.
Only after which the policy will be valid and available to be used by the person insured. This policy also acts as early illness insurance, and most people take it when they are diagnosed. They do this to make sure that they will have enough money in the future to pay for their operation.
The insurance should not be mistaken by any other insurance policy out there in the market. This will give you income for bills only if you are unable to work due to a disease. Many people think that this is not an ideal thing to have, as a simple maid insurance policy is enough.
This is not the case, as critical illness will give the maid a cover when she is critically injured. Also, they can redeem this policy when the maid has been admitted to a hospital. This policy will give the maid monthly income, which she can use to make the payment of her bill.
What is covered in Critical illness insurance?
There are different policies, and all the policies should have three core conditions stated by ABI. These three conditions which should be there in every policy are heart attack, stroke, and cancer. There is also an additional kind of critical illness which are not covered by the company.
If you need those covers, then you have to tell the company, but the amount will increase. Many of the insurance companies in the market cover artery bypass, kidney failure, organ transplant, etc. There is also another kind of condition after which the policy can be claimed by the insured.
The insured person needs to be disabled or admitted to a hospital for surgery. Then only can the insurance policy be claimed to be the insured to pay their bills? There are policies in the market that cover 25 or more than that diseases in the market.
But this kind of policy will depend on the company which is providing the cover to the insured. That is why you should make this a habit to read all the terms and conditions carefully. Many times the critical illness cover can be added to a life insurance policy where it is redeemed after diagnosed.
If you combine both of the policies, the premium will be cheaper to be paid combine. Rather than paying for the premium of two different policies at the same or different time. This is because you can invest a lump sum amount of money in the combined policy to pay the premium. The critical illness cover will be given to people between the ages of 17 – 70.
Why should one consider taking critical illness cover?
Many people take a life insurance policy when they think that they might die prematurely. But people do not think about the fact that before death, there comes critical illness. This is why one should take a critical illness cover for themselves or their family or any other person. This is because you might never be known when you are affected by a deadly disease and can’t do anything.
In this case, the person who is insured will be given money from time to time every month for their disability. This means that they will be given every month a fixed amount of money when diagnosed with a disease. If you or anyone else is suffering from a deadly disease, you will know that it’s devastating. This means that the money which you have saved will be gone or used within a few minutes.
The policy will cover the gap between the time when you are admitted to the hospital till the time you can work. The critical illness cover can help you to pay the bills and also will help you to make payments for your house. This means the person insured can use this money in any way which they want.
There is a common question in the market that do you need to provide insurance for maid. The answer is yes, as you might never know when your maid might get injured or affected by a disease. This policy will help them to pay for the expenses they are facing, and you don’t have to worry about anything else. You should take critical illness cover in advance as you never know when a disease might get to you.
How much does critical illness insurance cover?
Here is a list of things on which the total cost of critical illness cover depends.
You will need to be 17 – 70 to take this, and according to your age, the amount will be decided.
If you are a smoker or a nonsmoker will also affect the total cost of the illness cover.
- Current health
They will do a complete health checkup of the insured person to decide the amount of the loan.
The cost will also depend on your occupation and on which rank you used to work in a particular company.