Critical Illness Insurance: 5 Answers To 5 Questions

critical illness insurance

Last Updated on March 29, 2021

Critical Illness Insurance, have you ever heard of it? When we hear the words insurance or policies, we immediately think of our regular health insurance policy or life insurance policy. Well, those are crucial, necessary, and needed to keep you and your family on the safe side in times of crisis, and no one can deny that! However, there are other insurances that you may consider buying if you knew their advantages and value, such as the income protection insurance  and the critical illness plan. So what is critical illness insurance? What should you know about this cover? And is critical illness insurance necessary?

1. What is critical illness insurance?

Critical illness plan, also known as a catastrophic illness plan or cover, is a type of insurance developed back in 1996. As the name entitles, it mainly targets covering the big unfortunate health-related events. These events may be a strong shock to your health and your life in general. A critical illness plan provides coverage for the big medical emergencies that generally cost much higher expenses to treat than average. It pays out additional cash to ensure the overruns’ financial coverage where your normal insurance plan may fall short. Critical illness insurance may be considered as an additional option next to your regular health insurance policy. The latter covers your regular medical necessities and treatment, while the critical illness is preserved for catastrophic events, such as a heart attack, stroke, or cancer. These illnesses and incidents usually cost bigger amounts of money to pay for all the doctor, operation, hospital, and drug bills; they may even leave you with insurmountable medical bills. That is where your health insurance may fall short and call for the help of your critical illness cover plan.

2. What should I learn about this type of insurance?

Critical illness insurance costs relatively less than your other policies, given the fact that it covers those medical emergencies, the occurrence possibility of which remains low. Also, you may buy your critical illness policy along with your life insurance plan. However, you should not confuse between the two. Your critical illness insurance does not pay out to your family in the case of your death; it pays out to you directly when you survive a stroke, for example. Moreover, there is a limitation to the instances your critical illness insurance covers; but they are major events with major costs and bills.

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