Critical Illness Insurance: What Is It and Who Needs It?

In case you are fortunate, there was no need for you to make use of critical illness insurance. Although you might not have heard of it, in case of a significant health emergency like cancer, stroke, or heart attack, it might prove to be the only thing safeguarding you from economic ruin. Even though many individuals presume that they have total protection from standard health insurance programs, treating serious ailments is generally much more than what can be covered by any plan.

Ailments such as stroke, heart attack, cancer, organ transplants, and coronary bypass need comprehensive medical treatment and care. Their expenses will be sufficient to outstrip the medical insurance policy of a family quickly. In case you do not have any HAS or emergency fund, you will find it quite tough to pay those bills from your pocket.

The best critical illness insurance will help to pay for expenses that are not covered by conventional insurance. One can use the cash for non-medical expenses associated with the ailment, including childcare, transportation, and so on. On most occasions, the insured is going to get a lump sum for covering those expenses. Coverage limits might vary – depending on the policy, and you might be entitled to several thousand dollars right up to $100000. Several factors might impact policy pricing, including the health, age, and sex of the insured, the extent, amount of coverage, and the medical history of the family.

However, there are some exceptions to this coverage. It might not cover some types of malignancies, and persistent illnesses might likewise be exempted. It might not be possible for you to obtain a payout if the ailment comes back or if you do suffer another heart attack or stroke. On some occasions, the coverage might end once the insured person reaches a specific age. Therefore, make it a point to go through the policy meticulously before anything else. You would never like to be concerned about your emergency plan.

Why it might be crucial

Critical illness insurance can be purchased on your own, or you might even do it via your employer. You might also be able to save cash by adding the insurance to an already existing life insurance plan.

Companies like to add these types of plans since they realize that their staff is concerned about spending a lot of money with a high-deductible plan. As compared to other benefits, the total expenses of critical illness plans are borne by the workers in most cases. This helps the companies and the workers save a considerable amount of cash in the long run.

One significant advantage of this type of insurance is that one can use the money for different things like:

  • For making payments for critical medical services
  • For making payments for treatments which are not covered by a conventional policy
  • Expenses of transportation like traveling to and from the treatment facilities, setting uplifts in residences for patients who are seriously ill, and retrofitting vehicles for carrying wheelchairs or scooters
  • For making payments for day-to-day living expenses allowing the seriously ailing to focus their energy and time for getting well rather than trying to pay the bills
  • Patients who happen to be terminally ill or those who need a peaceful area for recovering can use funds to go for a vacation with their near and dear ones

Reduced the cost and limited coverage

One thing that helps make these policies interesting is that they are not that expensive, particularly once you obtain them by means of an employer. You will come across some plans that require just $25 per month that appear like a bargain, unlike the cost of a usual health insurance policy that happens to be low-deductible.

In spite of the reduced price tag of these plans, you will come across a few health care professionals who happen to be cynical about whether they are ideal for the consumers. One matter of concern is that they are going to reimburse you only for those illnesses which are of a narrow range. You will be rather unlucky in case the ailment with which you have been diagnosed does not fit the designation of an illness that is covered.

You are going to pay more in premiums in case your plan covers more illnesses. For a woman who is 45 years of age with a person, a cancer-only plan might pay $50 every month for coverage of $25000. However, the same female might be required to pay twice that amount per month if the coverage was expanded by her to include organ transplants, coronary ailments, and other illnesses.

Similar to every insurance policy, critical illness policies are likewise subject to lots of stipulations. Apart from covering only those ailments mentioned in the policy, they will only cover the conditions under some particular circumstances mentioned in that policy. For example, a stroke diagnosis might not lead to payment until and unless the nervous disorder continues for 30 days or more.

Seniors need to be meticulous regarding these policies. Some policies might impose restrictions on payouts with individuals over a specific age (for example, 75) being not eligible for payment. They might also incorporate “age reduction agendas,” implying that the possible insurance payout decreases while you become older.

To Sum It Up

The Critical illness insurance will help get rid of financial worries if you are not able to work due to sickness. It offers lots of flexibility in that you can use the cash you receive in various ways to cover your potential requirements.

HLAS happens to be an accredited general direct insurer based in Singapore. It offers the Critical Illness Protect360 plan for making sure that families can concentrate on recovery in case of an illness or demise. Therefore, if you are a resident of Singapore and are suffering from a critical ailment, make sure to contact this company to get the maximum protection.

Show More
Back to top button