Critical illness insurance is a type of health insurance that provides coverage incase you get seriously ill. You can not sign up for this type of health insurance if you already have an existing illness.
Related Article: What is Critical Illness Insurance?
In the case that you do get seriously ill, a payment in the form of a lump sum is given. Plans and coverage can range depending on a number of factors, including where you live, the insurance company, and what your premium is. Generally, illnesses that are covered include cancer, heart attack, multiple sclerosis, stroke, blindness, kidney failure, organ transplant and Alzheimer’s disease. The severity of the illness can also change the coverage, so make sure to read every contract and form very thoroughly, understanding what is covered in your plan and what isn’t.
What is the difference between critical illness insurance, long term health insurance, and disability insurance?
Critical illness insurance is different from long term health insurance or disability insurance. The fact that it provides a lump sum instead of monthly payments or reimbursements for treatments that you have already paid for is what makes it most compelling. You can apply to get the lump sum as soon as you are diagnosed and it falls within your plan. Even after a full recovery, you are still entitled to 100% of the money. Long term health insurance usually involves getting monthly payments or compensation for individual treatments. There is no blueprint for whether or not you need critical illness insurance.
Talk it over with those closest to you, and most importantly consider your own circumstances. After all, nobody knows your body, or your situation, better than yourself. Weigh the extra monthly cost of the plan against the benefits its brings you and decide if it is necessary or not.
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