Are you considering Critical Illness Coverage? Deciding to get covered in case you can no longer work due to illness is one of the smartest decisions you can make, but there are lots of things to take into consideration before deciding on a policy. Here are a few things to keep in mind during the process.
This does not constitute advice and advice should be sought in all instances before acting on it.
Deciding factors
When it comes to critical illness policies, the options are endless, but the right one for you is out there. While you do want to ensure you are getting a good deal, you also want to ensure you have the most comprehensive coverage that you can afford.
First, base your search on your individual needs. If you are the sole earner in your family or if you have children and dependents, the coverage will need to be more extensive. Do you have any debt or do you still have a sizeable amount left on your mortgage? Do you have other insurance policies like income protection or life insurance? What illnesses could you possibly need to be sure are covered? It may seem like a lot of information to work through, but the answers to these questions will help you decide what and how much insurance you need.
Your budget might be the final deciding factor, because if the premiums are too high for you to consistently pay during the term then it isn’t sustainable and your coverage will be lost.
Essential policy elements
Even though the specifics included in your policy will be dependent on your needs, there are few things that are essential no matter what kind of policy you have. From policy to policy, the illnesses covered will vary, so if you are genetically at risk for certain conditions, make sure the policy you end up with includes them as well those most commonly claimed. These conditions include cancer, terminal illness, heart attack stroke, and multiple sclerosis.
Just a reminder that a terminal illness diagnosis will grant you the sum assured but may be excluded if diagnosed within the last two years of the policy.
Additionally, check to be sure total and permanent disability is a feature as this benefit is given when you can no longer work. And, even if some illnesses are excluded from some policies, there are some that will include these conditions and will pay out a portion of the benefit amount.
Types of policies
There are several different kinds of CI policies to choose from, including a separate critical illness policy, life insurance (LI) and critical illness combined policy, and a severity based policy. Important to note regarding the combined policy option is that when making a claim from the critical illness policy, the life insurance coverage no longer remains in effect. However, with a separate CI and LI policy, a claim made under the critical illness policy has no bearing on your life insurance policy. As for severity-based policies, payments made will be dependent, of course, on the severity of the covered illness.
Ready to get covered?
If you’re thinking about securing critical illness coverage or need to amend your existing coverage, we can help. To ensure you have all the protection you and your family need, contact the experts at Dental & Medical Financial Services today.