Critical Insurance- Is it worth it?
Certain statistics in U.K unveiled the fact that nearly 20% of men and 17% of woman are diagnosed with critical illness before they reach the age of 65.
Most people realize the importance of life insurance, but they consider critical illness cover as sheer wastage of money. However, it is a false notion that needs to be debunked.
What it can do for you
A critical illness insurance provide you a tax free Lumpsum cover for serious illness like heart attack, stroke cancer, multiple sclerosis, HIV/AIDS, Parkinson’s disease, and organ transplant. It all depends upon the plan you choose.
However, if you are diagnosed with critical illness, you can use the Lumpsum amount according to your whims and wishes.
The money can be used according to your own requirement like it can assist you for mortgage payments; it can pay you for medical and hospitalization expenses, also it can replace the salary of an individual.
The policy amount or cover may range depending upon your affordability. The average amount that people buy is approx two years of the salary.
What triggers the claim is the illness should be covered in the policy and the other precondition is you need to survive for at least 30 days.
How much cover and how much to apply
The major benefit of any policy is determined by doing cost benefit analysis. In case of critical illness, the premium depends upon your age and health history. Critical illness insurance looks more into personal health.
One of the major reasons that people don’t obtain critical illness cover quote is the huge expense. This type of life insurance comes at more exorbitant rates. Also, they try to put off the policy at an age when it’s least expensive. The earlier you get life insurance, the cheaper and better it is.
Remember, an out of stellar cover doesn’t automatically disqualify you from the insurance coverage. You can still get the perquisite amount, but you need to pay an extra premium. It is also known as rated premium. It is a simplified health policy that provides solutions to varied problems.
Types of Policies
The policy can be divided into renewable and guaranteed policy. In fixed policy the premium never changes, if it is a 20 year policy, the premium remains fixed for 20 years.
You can also opt for an option of return of premium policy, where you can get 100 percent return back of the claim. Those that don’t qualify for individual plan can opt for a group plan.
Thus, there is a critical illness cover quote to suit your requirements; all you need is to explore your options carefully.
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