Critical Life Insurance-Weigh your Options
It seems when things start going wrong in your life, the problems feel like a falling stack of dominoes. The common thinking during these testing times is poor me. Instead of feeling sorry for yourself, ask what hidden lessons are available. Often it is a test of patience, or responsibility or need to grow up. Critical Life Insurance can alleviate your potential financial wreckage caused by sudden physical disability.
Convention discloses that every man who has a family to support should have life insurance. This caveat is easily understood, accepted, and your next neighbor has it too. But what about critical illness cover? For this you’ll have to wander several streets to find if someone has it. This close cousin of life insurance provides you several advantages. After all, it pays a tax free Lumpsum payment to the insured if he is diagnosed with such illness.
What is critical illness cover?
Critical Illness Insurance provides you financial protection on diagnosis of major illness. This insurance covers the expenses which are not covered under typical insurance policies. You have freedom to use the Lumpsum amount according to your whims and wishes. It covers expenses ranging from medical to mortgage.
What diseases it covers
Critical Illness cover tends to be more expensive than life insurance, but it provides cover for a prolonged period of time. You are much more likely to experience a critical illness before the age of retirement. Indeed, the average age of a claim is 47 years.
It covers various diseases like Alzheimer disease, bacterial meningitis, brain tumor, leukemia, and other long lists of diseases are covered under typical critical illness cover.
Who is eligible for the cover?
The coverage is suited for
- High Wage Earners– If one spouse is earning a decent income, then he is supposed to have critical illness cover. If the spouse has critical illness cover in place, he can immediately afford to have a nanny care or other services to keep the things running smoothly.
- Self Employed persons who have capped there DI limits.
- People who are in risky profession are not covered under disability insurance. The persons like firefighters, truck drivers or police officers qualify for critical illness cover.
- Any other person who has an adequate income to cover critical illness costs.
Benefits of Critical Illness Cover
Coverage features may vary from product to product, so make sure you understand the cover purchased by you.
Here are key features of Critical Illness
- Paid Expenses– Critical Illness provides you financial benefit when you have head in sand syndrome. It fills the gaps, so that person is able to recover steadily.
- Automatic Renewal of Policy– If you pay premium on timely basis, right to renew critical life insurance policy is guaranteed.
- Lumpsum amount– If a person is diagnosed with illness as mentioned in the policy, Lumpsum amount is paid to the insured. This payment can be then used for several purposes like to pay medical bills, cover mortgage, or to pay utilities.
- Flexible Coverage Policy– In certain cases, insurers can have a policy paid upto 20 years or premiums can be returned in 15 years.
- Wide range of diseases are covered– Wide range of diseases is covered under the ambit of critical illness cover like benign brain tumor, kidney failure, loss of limbs, Parkinson’s disease, bypass surgery, multiple sclerosis, heart attack, paralysis, severe burns and stroke, etc.
Refusal of Policies
Many people who have claimed critical illness policy is turned down because of the following reasons
Firstly, the person claiming for critical illness is not one of the illnesses scheduled in the policy.
The moral of the story is obtaining policy with extensive coverage.
Secondly, if an applicant fails to disclose relevant matters, for example, if applicant fails to disclose that his father died of a stroke at the age of 55 years. If the insurance company had known the facts, it would have enhanced the premium or refused to provide the cover. It simply means applicants have effectively obtained the cover on false pretense or inaccurate information.
The moral of the story is providing truth in the application form. Anything that is related to you or your family medical condition needs to be disclosed.
From where to obtain policy
In a new trend, people are opting for online critical insurance quotes. It has gained popularity over last few years, but it is not substitute for professional insurance advice.
Critical Illness cover varies and you need an experienced eye who can best evaluate the policy. Entry to critical illness policy, which has limited seats, is through an entrance (medical) test. This doesn’t mean obtaining critical illness quotes on online bases is the dumbest thing to do. If you do it thoroughly and extensively, you can secure the financial future of your family. Remember, thoroughly talking with advisors and reading the schedule of claimable illness is the key to success.
Do remember obtaining critical illness quotes is first step to protect your family finances.
Acknowledge today that unhappiness is not a desirable state of mind, realize how to act accordingly.
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