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Critical Illness Insurance

Critical Illness Insurance

As healthy as you may think you are or hope to be, you may join the unfortunate ones that develop a serious or critical illness. Too often, critical illnesses can totally wipe out a family’s savings account. This is why so many people are purchasing insurance designed to cover critical illnesses. Learn more here.

Critical illness insurance, also known as critical illness cover, is a special kind of insurance policy that pays you or your family in the case of a covered critical illness. The premiums for critical illness coverage vary from person to person. Factors that insurance companies use to determine premiums include age, health, history of smoking, and family history.

The amount of coverage you require will also affect the cost of the premiums. Critical illness coverage may also be offered as a workplace benefit from your employer. They may also extend the coverage to your spouse and children as well. The advantage of getting it through work is that your premiums will be much lower.

There are three types of critical illness insurance policies.

A simplified issue individual protection policy used provides coverage up to $50,000 and doesn’t require a physical exam.

A fully underwritten individual plan requires an exam, costs more and offers much larger coverages.

Life insurance policies often allow you to purchase critical illness coverage as a rider to the policy. They’re affordable but come with some restrictions.

Although you may be paid in installments, critical illness policies typically pay a lump sum payment. The payment you receive may be used to pay for medical bills not covered by insurance, mortgage payments, and car payments or just to replace loss income because of the critical illness.

The critical illnesses that are typically covered include:

• Cancer

• Stroke

• Heart attack

• Kidney failure

• Alzheimer’s disease

• Parkinson’s disease

• Blindness

• Deafness


• Limb paralysis

• Multiple Sclerosis

• Major organ transplant

• Terminal illness

There really is not any one type of person that can benefit from critical illness coverage because terminal or critical illnesses can strike any of us at any given time. However, people who have certain health histories in their families often choose critical illness coverage.

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