Critical Illness Insurance Demystified
The future is as iffy as the dollar rates going up or down and one can never be too prepared for what tomorrow will bring. The same is true for illness critical and otherwise. If you are unfortunate enough to get hit by critical illness then the financial and emotional implications on family members are high. If you are too sick to work or you are unable to make mortgage payments or any other related factors it could mean that you are under a lot of stress. It is for this reason that a critical insurance cover is very important, so you save yourself grief.
Insurance policies are a plenty but you should be able to differentiate between a private medical policy and critical illness cover. Your company policies regarding critical illness need to be kept in mind too. At times you may be awarded a lump sum which is tax free if you are diagnosed as being critically ill. Remember private medical insurance only pays charges on severe illness, not critical but severe. Again, income protection insurance will pay you for the duration you were unable to work due to illness or accident and it will stop when you rejoin work.
ABI or the association of British insurers says that there are a variety of policies that cover different types of critical illnesses. Each has its own terms and conditions and the company will pay as per that only. The ABI has also put out model definitions wherein it details the critical illness covered. Insurance companies that cover critical illness sometimes use these in resolving claims. It is a good idea to check all the leaflets and documents on the subject of critical illness before you make a decision on which to go in for. Talk to your company for details and advice on how to insure yourself against critical illness and how to choose the best policy.
There are seven core critical illnesses covered by most insurance companies which are classified as coronary artery bypass surgery, kidney failure, cancer, heart attack, multiple sclerosis and major organ transplant. In today’s lifestyle these are the most common illnesses so a lot of companies include these in their policies. ABI has listed another set of problems which are Parkinson’s disease, coma, benign brain tumor, and deafness, loss of speech, motor neuron disease, third degree burns, and paralysis/paraplegia along with aorta graft surgery, terminal illness and heart valve repair and /or replacement.
The above mentioned may not be covered in toto but many insurance companies do include these in their list so their clients get a comprehensive cover. There are companies who also add total and permanent disability which is not mentioned but works on the same rules as the ABI.
People go in for a critical insurance cover to protect their families and it is a good idea to look around for as many quotes and programs you can find so that you can select the best one applicable to you. With a clearer picture of what you need you can go for the best.