While many individuals have life insurance and insurance products that protect their property, few have insurance policies that are designed to protect them against critical illness.
If you come down with a critical illness, it could affect your ability to work and it could lead to very large medical bills and other expenses.
To combat this issue, many insurance companies offer critical illness insurance to consumers. Why exactly do you need critical illness insurance and what can it do for you?
If you do not have this type of policy from an employer, you may be able to purchase individually. Talk to your local insurance agent to find out what types of critical illness insurance policies they offer, or use online comparison sites like http://www.comparethemarket.com/life-insurance/critical-illness/ to find the best deal for you.
How it Works
Critical illness insurance is a product that pays out if you come down with an illness or condition that is listed on the insurance policy. For example, the insurance policy may list items such as heart disease, cancer or diabetes.
After you are diagnosed with one of these conditions, you file a claim and the insurance company then pays you a specific amount of money. In many cases, the money that is paid will be in the form of a lump sum. Other policies provide you with a monthly payment for a certain amount of time until the benefits of the policy are exhausted.
Why it’s Needed
Critical illness insurance may not be one of the most popular policies that is commonly sold in the industry, but it does offer some major benefits to consumers. When you come down with a critical illness, it can affect your financial situation in many different ways.
For example, you may have to take off work in order to receive treatment for your condition. You may not be able to work for a certain amount of time. If you do not have short-term disability insurance, this type of insurance can help cover the financial gaps that come with missing work.
In many cases, your regular health insurance policy may not cover all of the out-of-pocket costs that you incur because of your condition. For example, you may have to pay a large deductible or a coinsurance amount in order to get your health insurance to pay for the rest of the treatment.
If you have to pay thousands of dollars out of pocket, it could completely deplete your savings or cause you to have to borrow money from another source. If you instead have critical illness insurance coverage, you may be able to avoid racking up debts or depleting your savings.
This will also help your family members if you eventually die from your condition. If you do not have to deplete your estate before you die, your family members will be able to inherit more money upon your death.
Getting a Policy
In some cases, you can get critical illness insurance through your employer. Many employers purchase this type of insurance coverage for their employees as part of a benefits package.
If you do not have this type of policy from an employer, you may be able to purchase individually. Talk to your local insurance agent to find out what types of critical illness insurance policies they offer.
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