What is Critical Illness Insurance?
With rapid advancement in medical diagnosis and treatment, many illnesses that were once a death sentence are now curable. Critical illness insurance is a relatively new form of insurance designed to provide financial support during recovery from major illnesses.Also known as 'trauma' or 'recovery' insurance, it provides a lump sum of money on the diagnosis (or occurrence) of one of a list of specified medical conditions and procedures. The most common of these include cancer, heart attack and stroke, but your critical illness policy will state exactly which conditions it covers. Be sure you understand what you’re covered for and what the benefits are.
How can critical illness insurance help?
Critical illness cover means that, in the event of illness or injury, you’ll have the funds you need to avoid financial stress while you recuperate. Unlike health insurance, you can decide how you’ll use the payout from your critical illness insurance. You may decide to reduce debts, pay for medical treatment or rehabilitation, or even fund a lifestyle or career change.
Who should consider critical illness insurance?
Anyone who has ongoing financial commitments, or wants to ensure they can maintain their independence and lifestyle in the event of a traumatic illness or injury, should consider critical illness insurance. Parents and those with dependants have an obvious need for this type of financial protection. However, many single people and couples without dependants are also likely to want to remain in control financially if they’re unable to earn an income for an extended period of time.