Insurance for a Critical Illness
A person with critical illness insurance receives a lump sum of money after diagnosis. The money is to help pay for medical care that is a result of the critical illness. Covered illnesses include cancer, stroke, Alzheimer’s and heart attack among others.
Critical illness insurance is not something that everyone needs. Anyone can develop an illness, but the insurance is basically for people with a high-risk. For example, if a person comes from a family where several people have had cancer, then they might want critical illness insurance. On the other hand, a critical illness can strike anyone at any time. So anyone who wants the insurance can get it.
How it Works
The cost of coverage depends on your age, present medical condition, and the number of sicknesses covered by your policy. You should choose coverage that can replace your current income, take care of medical bills, financial obligations, and family needs.
The policyholder receives the payout after being diagnosed with a critical illness. There must be an official diagnosis by a physician that the policyholder has the particular disease listed on the policy. The insurance company releases the benefits 30 days after the approval of the claim. If the policyholder dies without making a claim, then the listed beneficiary will get refunds. In some cases the insurance company will pay the policyholder a portion of the premiums if no claims are made for a long time.
Benefits of Critical Illness Coverage
Having a critical illness is not a good situation. It makes life more difficult, and can change everything. You might be unable to work, unable to pay for healthcare or unable to care for your family. That is when the insurance becomes useful. Then after you’re gone, your family will have money to pay burial expenses or other expenses.
You also won’t have to depend on your family, and you can use the money for something useful. You can think of critical illness insurance as a bright spot in a cloudy sky.