Pros and Cons of Critical Life Insurance
There are very few things, which add significant value to your life. Only handful of critical life insurance policies focuses primarily on what you need, and not on how they (insurance company) get benefited. The ideal policy is one, which is malleable to every situation, which would prove beneficial to the policyholder as well as the insurer. Unearthing more of this concept, critical illness cover provides a host of benefits.
Before jumpstarting further, let’s discuss what this hype is all about
Critical Life Insurance– Critical Illness Cover is a policy where you will receive lumpsum amount upon diagnosis of the illness. The illness can range from Stroke, Heart Attack, Cancer, Paralysis, Organ Transplant, Blindness, Disability, etc.
Any additional illness covered will be mentioned in your policy or a document provided to you by your insurer.
The time and amount of cover are determined by you, although there can be certain prohibitions or restrictions that you can check from your financial advisor.
The type of critical illness cover may vary categorically, so it is recommended that you apply analytic approach for leveraging the policy in your favor. There are many more things to learn about critical illness cover, metrics, pros and cons of buying such policy, and whether to buy joint or standalone policy. Hope this article helps you to overcome the challenges.
Critical Illness Pros
- Tax Free Lumpsum Payment– Within 30 days of diagnosis with a critical disease; insurance company will pay you a tax free Lumpsum amount.
- Supports your Family– This insurance is of utmost importance, if you have a mortgage to pay or family to protect.
- It covers upto 30 diseases– Your critical illness cover can protect you from 30 life threatening diseases. Coupled with that, you can use this money in whatever way, you see fit.
- Tranquility of Mind– In a situation where critical diseases are growing at an unprecedented rate, most are introducing critical illness cover in their lives. Owing to the sheer fact that not having to worry about financial difficulties allows you to recover in a better fashion.
- Guaranteed Premium– Although reviewable premium tends to be cheaper, yet obtaining guaranteed premium will save money on critical illness policy.
Critical Illness Cons
- Expensive– The major downside of such policies is it is difficult to afford in contrast with other forms of life insurance policies. I personally believe obtaining critical illness quotes from varied companies can help you to solve this problem.
- Restrictions of Certain Disease– The diseases like lymphoma, Kaposi sarcoma, non invasive skin cancers are not covered in such policy. Do check the document carefully, as it will reveal what specific kind of illness is covered. However, the large conglomerates like Prudential provide comprehensive cover for all such diseases.
- On hand Medical Conditions– If your family members have high incidence of life threatening disease, premiums can be enhanced or diseases can be excluded. Tailoring your approach with flexibility in your thinking remains the only key to success, in such a case.
- Increased Premium– Once the whole process is completed, insurance company can increase your premium, if you smoke or drink alcohol. The other reason of an increase can be hierarchical disorders or if any of your family member is overweight. So, insurance companies will provide you with a plethora of choices packed into hundreds of options, you have to rise above the white noise, and select the best policy according to your needs and requirements.
- Refusals– Most of the critical illness cover is rejected on the basis of ill health. If you are persistently suffering from health problems, insurers can straight away reject the application.
Which Policy to choose- Joint Life Insurance Cover or Standalone Critical Illness
In a world that is moving extremely fast, to find time to select the best insurance policy is a real challenge.
As mentioned earlier, critical illness cover pay Lumpsum amount if you suffer from life threatening disease or if you permanently become disabled. Life Insurance is a payment made to designated beneficiaries in the event of untimely death of a policy holder.
Critical Illness versus Life Insurance
If you are single, you can consider purchasing a critical illness cover for you- after all there won’t be any designated beneficiary.
It does not mean standalone critical illness cover will be cheaper. Moreover, joint insurance policies are more required hence; in the heat of competition they (insurance companies) drive down the prices. To be counter intuitive, you can search critical illness quotes from various companies.
Bearing in mind the exhaustive intricacies and nuances of both the policies, it is concluded if you don’t have dependants, it seems best to have standalone critical insurance policies. In the absence of adequate options (Critical illness quotes) due to paucity of age and experience, there is a tendency to choose the wrong policy. Life Insurance is quite expensive as you grow old, hence; obtaining it under joint name can be a better option.
Thus, educating yourself will provide innovative and revolutionary look. Considering the changing landscape of insurance sector and requirements of individuals both the policies should be considered very carefully.
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