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Critical Illness Cover

Critical Illness Cover: A Brief Guide

Life is unpredictable, so Critical illness cover is designed to safeguard you and your medical expenses to some extent. If you are diagnosed with one of the defined illnesses, then such a critical illness cover would pay a lump sum of money. With particular medical and financial help, you can pay off any outstanding debt, mortgage, rents.

On the other hand, you can avail wheelchair access or any similar medical equipment for your well-being. However, do you need critical illness cover? Every illness cover or insurance comes with definite terms and conditions. Discover whether critical illness cover can really help you with financial management.

Critical Illness Cover: Definition

In case, you are suffering from one of the mentioned illnesses in the critical illness cover, then it will pay you out. It is also called as critical illness insurance. If you have gone through a specific medical condition or suffered from injury or definite surgeries, then you can claim from the critical illness cover schemes. The purpose of the critical illness cover is to assist your family financially and take care of your medical bills. The benefiter can concentrate on the recovery and medical treatments without worrying about medical expenses.

However, not every critical illness is within the terms and conditions of the insurance. Additionally, one can avail the advantages of the cover, depending upon the seriousness of the sickness or medical injuries. And, one shouldn’t confuse between life insurance and critical insurance cover, they are different. But, they can be sold, to you, together.

Medical Conditions Included under a Critical Illness Cover

Every critical illness cover might differ from the range of illnesses covered, typical conditions and others. However, most critical illness insurance covers the following medical instances, such as:

  • Stroke
  • Cancer (Specific kinds and definite stages)
  • Heart attack
  • Multi-organ failure 
  • Multiple sclerosis
  • Coronary artery disease
  • Parkinson’s disease
  • Alzheimer’s disease

Apart from these, critical illness covers can count permanent disabilities as critical injury, too. And, you can grab the payment once. And, when the policy ends up paying you the amount, it finishes. You can’t avail any more money from the same policy. Well, some insurers might break the payment into smaller instalments, if the medical condition is not too serious. 

Additionally, not every critical or severe illness is covered under insurance. For example, it might miss out on a class of cancers and their stages. On the other hand, the insurance won’t pay you out, if you are struggling with diseases that already existed. And, you have got insurance after you know about the existing diseases. The insurance won’t pay you out at any cost even if the disease leads you to death. So, do you need critical illness cover? Check the terms and conditions of such insurances before you pick up one.

The Contrast between Life Insurance & Critical Illness Cover

Life insurances are designed to pay your loved ones after you pass away when the policy remains active. It would benefit your family, and they would grab financial help from the insurer after you have passed away. Through this, your family can afford the mortgage payments, debt repayments and education for your children. 

Whereas critical illness covers would offer assistance to you and your dearest ones when you are struggling with the medical conditions. Additionally, the critical illness cover would work for particular diseases and medical injuries. With the amount that the insurer pays you out, you can pay off the medical bills. This is a great opportunity for those who have lost their jobs due to disabilities. Moreover, you can’t avail the benefits from the critical insurance covers, after you die. And, this is the major difference when you compare life insurance and critical illness cover benefits.

Do you need critical illness cover? When you are thinking of getting life insurance or critical illness cover, don’t forget to eye over the rules and regulations specified on documents. Most of the insurers might ask you to get both. Keep in mind that both policies would pay you only once. In case you restrict the payments to the cover, the cover automatically goes invalid.

Do You Need Critical Illness Cover?

When you can’t work due to a long-term disease or disabilities, critical illness cover can truly benefit you with hefty medical bills. Whereas only the state benefits might not offer the required amount for your medical treatments. For instance, the Employment and Support Allowance might offer you a maximum of up to £100 weekly only after you can prove your disability. 

However, you can opt for critical illness insurance for the following circumstances:

  • Your employment package lacks sickness benefits for a long-term illness
  • You are the only earning member in your family and you have to depend upon your salary for treatment, as well.
  • Or, you couldn’t save much for treating such critical diseases

So, decide do you need critical illness cover or not? You can avoid getting a critical illness cover, if you can manage the following situations:

  • Your partner can afford your medical expenses and other financial stresses.
  • Or, you can pay off loans, medical expenses, loans or mortgages with your savings.
  • Your employer offers you a sickness plan for long-term medical issues.

Terminal Illness Benefit

You might encounter a specific policy named terminal illness benefit along with life insurance policies. Some insurance companies attach such advantages to life insurance protocols, and it allows you to reap the benefits of life insurance before you die. However, other terms strictly depict that you need to be diagnosed with definite critical illnesses. 

Additionally, your doctor has to mention that you are left with a lifespan of twelve months or less than that. Therefore, check out the rules of life insurance and note if it comes with terminal illness benefit before you sign any cover or insurance. And, don’t confuse between critical illness cover and terminal illness benefit.

Critical Illness Cover: How Much you Require paying

Like any other insurance, you have to first make payments for availing the benefits later. You need to stick to monthly payments, and the amount relies on the following factors:

  • The age of the cover holder or the benefiter
  • In case you possess the habit of smoking or not
  • The amount for insurance
  • Your health history such as weight, height, previous medical records and family’s medical history
  • Your present income status and jobs

Do you need critical illness cover? Then yes, your job can play a significant role in deciding the right monthly amount for critical illness cover. Few specific jobs might have greater risk factors. So, you might have to pay more every month, if you’ve chosen such an occupation.

Critical Illness Cover: Working

Keep in mind that you have to check how long the policy is going to last and the amount you have to pay every month. Critical illness cover payments can go a little bulky for those who are already dealing with outstanding debts and mortgages. Here’s how you can manage the cover:

  • First, you have to select the amount that you need to insure. Then, the insurance company would decide the cover for you and the time span it should take. The cover holder has to pay the same amount every month till the insurance ends.
  • In case, you can’t cope with the hefty monthly payment at the very beginning, then you can start with low payments. And, then you can gradually increase the payments. It would make sure that you can avail the benefits of the insured amount and nothing less.
  • On the other hand, you can try the opposite payment plan too. It means that you can start with heavier monthly payments and the amount would eventually decrease with time. Indeed, it doesn’t hamper the insurance amount at all.

Decide How much Cover Amount you Require

Do you need critical illness cover? If you have decided to get one, then decide the insurance amount before you cling to any available insurance. It’s a wise decision to take help from such a policy for future emergencies. Especially when you have to afford your family expenses, too, along with your medical bills. Additionally, the lump sum of money can help in repaying debts, too. So, keep an eye over the monthly payments and derived insurance amount for maximum benefits.

Finally, when to Ask for the Critical Illness Cover….

After you are diagnosed with the illness, you might not readily avail the benefits. Usually, the insurance bodies would want to see your medical history. So, keep your medical documents ready when you’re about to apply for the coverage claim. 

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