In today’s world, the number of critical illnesses like a cancer heart attack of specified severity, stroke, kidney failure, multiple Deloris, end-stage lung disease, end-stage liver disease, Alzheimer’s disease, Parkinson’s disease, Coma, and major head trauma may have contributed to more than 60% of death cases. Due to this high number of statistics, it’s important to have a critical illness term insurance plan.
Term insurance is an insurance cover that provides coverage for a specified number of years to an insured but less expensive than permanent life insurance. In case the insured dies when the policy is still active a death benefit will be paid their dependents. On the other hand, a critical illness term insurance gives the insured a lump sum payout when they are diagnosed with a critical illness. This can be used to cater for your expenses while you recover from your illness. There are seven factors to consider before taking a critical insurance plan coverage. Get to know the payout structure of the plan.
There are two plans to consider that is the critical illness accelerated plan that accelerates the payout of a life cover policy and reduces the death or permanent disability and the critical illness additional that on pays on top of the life plan basic sum assured. Another thing to consider before taking up this cover is how much coverage do you need? Taking up a critical insurance plan cover that is 3 or 4 times your annual income will help cover your daily expenses at the point when you are diagnosed with a critical illness and cannot continue working. You are left with medical fees and lost income while recovering. Check to find out if you plan increases as you get older and whether the plan is renewable. This is because critical illnesses increase with age.
The older you get the more prone you are too critical illnesses and you don’t wish to find yourself without a cover and in need of a payout when you are retired. Always check that your plan covers multiple claims because most critical illness plans do not offer multiple claims and tend to lapse just after one claim leaving you exposed in case of another critical illness. Lastly, consider at what stage of your illness you would like the sum assured paid out. Critical illness insurer has different destinations to early critical illness so be in the know before you make a claim once you are diagnosed with a critical illness.
The only problem with critical illness is that the assured may not be able to make a claim if the illness suffered does not fall in the destination specified. But not to worry because, in today’s world, medical advancements are making it possible to survive critical illnesses compared to the past years. Critical illness term insurance usually has a waiting period meaning that if you are diagnosed with a critical illness within the waiting period then you cannot claim it. Some claims include a survival period that requires the policyholder to survive for at least a month before making a claim.