Critical health insurance is a relatively new type of policy that is often misunderstood. Today we can clarify what it is and what it is.
How does critical illness work?
Critical illness is similar to life insurance unless the disease is paid for illness covered by the illness and is not paid after the death. Some, however, confuse this type of insurance with invalidity insurance, which reimburses 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 spent – some will provide additional medical treatment (especially if there are treatment methods that are not covered by provincial healthcare), others decide to spend time with the family or travel.
As with many insurance products, this type of insurance plan includes an extensive insurance offer, application and subscription process that the insurer analyzes before it gets a policy; and as with any insurance policy, critical illness policy involves both arguments and disadvantages.
Let's look at this kind of insurance benefits and disadvantages more closely.
Critical health insurance professional
There are a number of positive aspects:
- Funds that Help When Needed: If a lump sum is diagnosed in a critical illness, then in some cases, better treatment and hopefully full recovery can be achieved.
- Protecting Your Own Business: If you own a business you have to work part-time after diagnosing a critical illness (a drop in the size of your business) working time is common if extensive medical treatment is required). It stops the financial gap caused by reduced hours in the company. With funds, you can hire someone to 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 multiple disability policies. However, there is also a policy that involves various diseases. For example, if you get two benefits of $ 250,000 and $ 300,000, you'll get 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, $ 500,000 insurance policy (condition 10 is a ten-year insurance policy) for a 35-year-old non-smoking man without the prerequisites being about $ 180 / month (exemplary bid) 10 years life insurance policy covering the same person $ 1,000,000 coverage
- Definitions count: If a diagnosed disease, such as a heart attack, is not consistent with the definition of the disease in the directive
- Does not apply to you immediately: Your policy typically has a waiting time (eg 90 days) below which you do not cover it.
- Payment is not immediate: If you are diagnosed with a critical illness, there is a "survival time" (eg 30 days). If you die during this period, your claim will not be paid.
Critical disease insurance provides solid coverage for diagnosing unexpectedly serious illness, but this coverage costs. It's a good idea if you work with an insurance broker to get a critical health insurance offer and apply a policy. Brokers can have access to multiple insurance companies and help them navigate through a complex tender procedure, especially if they have medical prerequisites.