Critically illness insurance is a relatively new type of policy that is often misunderstood. Today we will clarify what it is and what it is.
How does critical illness work?
Critical illness is similar to life insurance for the concept unless it is paid if the disease covered by the policy is diagnosed and not paid to death. Some, however, confuse this type of insurances with invalidity insurance, which replaces their income if they become disadvantaged.
Sickness insurance, like term life insurance, lends a lump sum if pre-defined disease, such as cancer. You decide that this amount will be used – some will use additional medical treatment (especially if there are treatment methods not covered by provincial health care), others decide to spend time with family or travel.
Like many insurance products, this type of insurance plan is covered by an extensive insurance offer, application and subscription process that is insured by the insurer prior to obtaining a policy; And like any insurance policy, critical illness policy involves both arguments and disadvantages.
Let's take a closer look at the benefits and disadvantages of this type of insurance
Critical Illness Profi Insurance
There are a number of positive aspects:
- Funds that Help When Needed: If you diagnose lump sums in a critical illness, you may, in some cases, get better treatment and hopefully complete healing. These funds can be spent on other needs or projects (for example, a trip or item from the bucket list).
- Protecting Your Own Business: If you own a business, you must work part time after diagnosing a critical illness (reduced work time is common if you need extensive medical attention). It stops the financial gap caused by reduced hours in the company. With funds, you can hire someone who can help with your business.
- Stackable protection: Contrary to disability insurance, the coverage of critical illness is "stackable". With disability insurance coverage is limited because it is based on your income and you can not even exceed this limit if you have more disability policies. However, you have a policy that has different diseases. For example, if you have two benefits of $ 250,000 and $ 300,000, you will receive a $ 550,000 payout when you make a claim.
Disadvantages of Critical Illness Insurance
- Expensive: This type of insurance is not cheap. For example, a 10-year insurance policy of $ 500,000 (condition 10 covering a 10-year insurance policy) for a 35-year-old non-smoking man without the prerequisites being about $ 180 / month (exemplary) An annual life insurance policy that covers $ 1,000,000 on the same person costs $ 50.
- Definitions are essential:
- Does not Affect You Instantly: Your policy usually comes with a wait time (like 90 days) below which you do not cover it.
- Payout is not immediate: If you have been diagnosed with a critical illness, there is a 'survival period' (for example, 30 days). If you die during this period, your claim will not be paid.
If a diagnosed disease, such as a heart attack, does not fit into the concept of illness, the claim can not be paid.
Critical disease insurance provides solid coverage because it is diagnosed with unexpectedly serious illness, but this coverage costs. It's a good idea to work with an insurance broker to get a critical illness insurance policy and apply a policy. Brokers can have access to multiple insurance companies and help navigate the complex application process, especially if they have medical prerequisites.