Critical illness

What is a Critical Illness Insurance Policy?

This type of insurance policy helps to ease the financial burden caused to the policy holder due to expenses incurred from treatment of serious illnesses. The policy enables the holder to obtain a non-taxable lump sum in his /her hour of need. The premium on such a policy can either be fixed or subject to increase by the insurance company. To make a claim using such a policy the company will usually require a diagnosis of the illness.

These policies typically cover a wide range of medical conditions and diseases; however the exact conditions covered vary from one insurance company to another. Commonly covered diseases include cancer, coronary artery bypass, heart attack, kidney failure, organ transplant, multiple sclerosis and strokes.

Why should you consider buying critical illness insurance even if you are healthy?

Recent estimates suggest that one in three people by the age of 65 will have suffered critical illness. A 25-year-old male non-smoker has a 24 percent chance of having a critical illness (cancer, heart attack or stroke) prior to turning age 65. According to the American Cancer Society, Men have more than a 1-in-2 lifetime risk of developing cancer. Women have a 1-in-3 lifetime risk.

What  happens if critical illness strikes? Couple on Beach

The good news is we are at a point in the history of the world when surviving a critical illness is not only possible  but is also becoming increasingly common with owing to rapid advances in medical technology. However, only few are able to afford this luxury as treatment costs can wreak havoc on your personal savings.

By planning for this unexpected event in your life you can ensure that you are able to afford the costs of medical treatment so that you can now spend even more time with your loved ones doing the things you enjoy for longer. By buying a critical insurance policy you are eligible to claim a ‘one off’, tax-free, lump sum should you be unfortunate to be diagnosed with a critical illness. You can then use this sum to treat your illness or in whichever way you deem fit while you get treated for your disease.