Critical illness insurance is medical insurance where the company makes a lump sum cash payment or pays out a regular income, if the policyholder is diagnosed with one of the critical illnesses listed in the policy. A critical illness insurance payout helps you avoid the financial strain a major illness can create so you can focus on your recovery. It helps give you the freedom to:
- Get the treatment you want
- Spend time with your family and friends
- Keep your home and other assets
The policy may require the policyholder to survive a minimum number of days (the survival period) from when the illness was first diagnosed. The survival period used varies from company to company, however, 14 days is the most typical.
There are usually specific rules that define when a diagnosis of a critical illness is considered valid. It may state that the diagnosis be made by a physician who specialises in that illness or condition, or it may name specific tests, e.g. EKG changes of a myocardial infarction, that confirm the diagnosis.
Shopping for Coverage
Critical illness insurance is often purchased by:
- persons in high-risk professions who may be unable to secure traditional disability insurance
- persons with inadequate health insurance coverage
- the self-employed
- anyone that expects to be in need of financial assistance should illness make it impossible to earn a living
Policy pricing is impacted by a number of factors, including:
- the amount and extent of coverage
- the sex, age and health of the insured
- family medical history
A number of insurers offer these policies, so let us compare and shop for the most appropriate policy for your needs.