Who should consider critical illness insurance?
• If you have long term financial commitments such as loans or debts then you should consider opting for this insurance plan.
• In addition, if you have dependants that need you then you should opt for this type of beneficial insurance plan.
What is Critical Illness Insurance?
• Critical illness is a type of personal insurance that is considered a must for people who want to remain financially secure when they are diagnosed with a severe illness. While you may be wondering why someone who is diagnosed with a terminal illness should opt for critical illness insurance, the answer to this is that critical illness plans can pay for medical bills and other types of bills that may arise due to being diagnosed with a serious illness.
• Critical illness insurance can ensure that survivors are not bankrupt when they are trying to get back on their feet and they still have assets or saved funds when it’s time to get back to their normal life.
How is Critical Illness Insurance Different to Trauma Insurance?
• Critical illness insurance plans are also known as trauma insurance plans in Australia. Trauma and critical illness insurance plans are meant to pay a lump sum amount upon diagnosis of a terminal illness such as cancer.
• While some insurers may differentiate between the definitions, buyers should keep in mind that irrespective of the type of plan they purchase they should ensure that a maximum number of conditions are covered by the insurer.
Features of Critical Illness Insurance
• Critical illness insurance plans can either be short term or long term, based on your preference and requirements.
• The benefit of opting for long term plans is that they do not have to be renewed every few years, only the premiums have to be paid periodically.
• Critical illness plans pay out a lump sum payment that is usually pre-decided by you and the insurer upon diagnoses of an illness such as Alzheimer’s.
Pros and Cons of Critical Illness Insurance
• Pros – There are no restrictions on how you can use the compensation payment you receive. There are no restrictions on who can use the compensation payments you receive provided that you file the claim. A wide range of additional benefits are also offered on these plans, out of which some benefits are optional and charged at a nominal fee.
• Cons – The compensation amount is only paid after the cooling off period of the policy has completed. There are certain exclusions that apply to these plans, for instance if you suffer from a condition that is not covered by the policy then you will not receive any compensation payment. If you have more than a few pre-existing conditions then you may not be eligible to receive compensation payments.
How To Compare Critical Illness Cover
• Always check the cover level that is the benefit amount you will receive.
• Make sure to check how many conditions each plan is offering.
• Compare quotes from leading insurers or insurance agents by using online tools offered
on insurance comparison websites.
• Compare the terms of various policies and choose a policy that is flexible.