Guide on Critical Illness Insurance

James Wilson
May 1, 2019
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If you are a young and healthy person, it is likely that you have never heard of critical illness insurance. People who are older or currently suffering from a critical illness may also be unfamiliar with these policies. However, if an emergency were to happen where you become the victim of a heart attack, stroke, cancer or other critical illness, a critical illness policy may be your saving grace.

If such an illness were to occur, a standard health insurance plan won’t be able to cover all the costs. It’s something that catches people out every day, they assume they are covered by their current policy and are hit with surprise costs. Thankfully, you’re reading this article and so you at least have the information to consider. Continue reading this guide on critical illness insurance to find out what it is and if you need it.

What is Critical Illness Insurance?

Like life insurance, health insurance is something everyone should have. Different people will need different policies and benefits. One type of coverage that often overlooked is critical illness insurance. This type of insurance providers coverage to people who suffer from critical illnesses such as heart attacks, strokes, cancer, organ transplants and more. These illnesses require extensive treatments and medical care that standard medical insurance can’t cover. That means a good portion of the costs will come out of your own pocket.

Critical illness insurance can cover what traditional health plans won’t. Like other policies, a critical illness plans pricing is impacted by a variety of factors such as age, health and family history. Take time and speak with a professional to make sure you understand the policies and your options. Some types of cancer and chronic illnesses may not be covered.

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Ongoing care and assistance is another factor that people don’t consider. For example if you are left partly incapacitated or needing extra assistance due to your illness this might not be covered. Nurses to your house, helpers to allow you to function and physiotherapy aren’t always covered under your core medical insurance.

There are many recorded cases of people taking on serious debt, losing their home and even going bankrupt from unexpected medical expenses. Therefore if you don’t take out insurance for these costs at least make sure you have substantial savings.

How to Get the Best Critical Illness Insurance

Figuring out how to find, compare and purchase critical illness insurance is a somewhat difficult task. Not all companies offer critical health insurance and many people are not even aware it exists. You might need to call up insurance companies to ask if it’s something they offer. Because of the amount of factors that go into generating a quote for critical illness cover, getting a side by side comparison isn’t simple.

Just as you would compare life insurance premiums, you will want to compare critical illness policies. Financial advisers and insurance companies will be able to help you find what you need to do comparisons. It may be best to work with an adviser because they don’t usually have fees for finding this information, and they are more than willing to help get you what you need because they get commissions upon purchase.

If you have previously been turned down for insurance, look into speaking with a professional who specialises in high risk coverage. Be honest about your health history and any other questions an insurer might ask. This is really important because if you omit information and have to make a claim it can invalidate your whole policy. Like always, read the fine print before making any decisions.

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If you already have medical insurance you necessarily need to change your entire policy. Some insurers are able to sell you just the critical illness as a separate policy. In the unfortunate event that you would need to make a claim, the main coverage would stay on your main policy and the extra treatment on your critical illness policy.

Is it Worth It?

There are risks associated with insurance. You can’t possibly know what will happen in your future and will find yourself wondering how much coverage you need, what policies would be best, and how much you may end up paying out-of-pocket for critical illness.

Take into account your current health and family history. If you know that in the event of an emergency you would never be able to pay for the out-of-pocket expenses a standard plan won’t cover, critical illness insurance is for you.

Most people don’t consider this type of cover until they are older, but that’s actually the opposite of what you should do. The reason being is that if you are unfortunate enough to be hit with a critical long-term illness at a younger age, the overall cost of care will be much higher.