Critical illness insurance is a type of coverage that will pay out a lump sum if the insured is diagnosed with cancer, heart disease or other life-threatening medical conditions. The sum can be used in any way such as to pay for your medical treatments, to pay your mortgage, or to avail of private medical care.
In the past, this type of cover was difficult to sell. But now, people are beginning to realize how important it is, not only for their own well-being but also for their loved ones. Today, many are looking for critical illness insurance quotes online, especially since insurance providers have increased the number of medical conditions and illnesses covered in their health plans.
Several years ago, this type of policy only covered advanced cancers but in recent years, early-stage cancers are already included. Cancer accounts for about 70% of the claims, followed by heart attack, multiple sclerosis and stroke. Some critical insurance policies cover as many as 50 health conditions, while others cover only around 10. It’s important to check the features of the plan before purchasing it, because you will only be covered for what’s laid out in the policy and nothing else.
Is Critical Insurance Needed?
If you are employed, it’s worth checking what kind of benefits you have from your employer. A lot of companies these days offer life insurance and a few also provide a critical illness cover. If yours doesn’t, then getting critical illness coverage is worth taking into consideration. That’s because according to the experts, you are six times more likely to make a critical illness claim than a life insurance claim.
Normally, critical illness is added to life insurance. Factors like your medical history, your age, and whether or not you smoke will determine how much it will cost. The cheapest policies often entail fewer covered medical conditions.
How Much Coverage is Needed?
The answer varies from one person to another but as a starting point, you can multiply your mortgage payment by 24 and add $5000 for other expenses that are not covered by your health plan. So if you pay $1000 per month on mortgage, then the minimum amount you need is $29,000.
When Should You Get Critical Illness Insurance?
You can check the Marketplace to have an idea of how much this type of insurance will cost you. When you visit the Exchange, you will be required to enter some information about yourself such as your age, location, income, and others. After filling out the form, you should be able to view your insurance options and how much they will cost you.
Some people may be in greater need of critical illness insurance than others. But if you have the budget for it, I say, get this kind of health coverage. Even if you’re in the pink of health today, you can never be 100% certain that you won’t get severely ill in the future.