Saturday, June 30, 2012

Critical Illness Insurance Coverage

Progress in technology and the treatment of well-known diseases mean that people are living longer and healthier lives. There are circumstances almost when unexpected health issues could result in a critical illness. Some people, to protect themselves or their loved ones, seek critical illness insurance coverage. Such coverage pays a tax-free lump sum of money to a person when diagnosed having one of the conditions outlined in a policy. Critical illness insurance can be obtained as an add-on of a life insurance coverage or as a stand-alone insurance.
The type of coverage you receive depends on the policy. It is therefore essential to read carefully the policy and understand very well all the terms and conditions. As a general guideline, for an insurance to be regarded as critical illness insurance, it must provide coverage for advance level of cancer, severe heart attack, and strokes that leads to a permanent condition. Insurance policies have different packages on offer that cover many more conditions than just the three mentioned.
A basic insurance package may have coverage for major organ transplants, kidney failure or Alzheimer's disease while a more comprehensive package may include severe disabilities, loss of limb, sight, and other such impairments. Critical illness policies have very well-defined criteria and the definition of a critical illness is explicit. Some policies do not cover Alzheimer's disease when diagnosed after the age of 60 and most do not take into consideration claims resulting as a consequence of drug or alcohol abuse, engaging in dangerous sports, participating in a riot, civil disturbance or war. Also not considered are illnesses resulting from HIV unless caught by accident through blood transfusion, physical assault or as a result of working for an emergency services.
Unless you have all the necessary information and knowledge regarding critical illness insurance; you can have more help by buying coverage through a financial adviser or a broker specialized in insurance. An adviser can help you decide the financial aspect of the coverage by determining according to the type of coverage, the anticipated illness, and the level of impairment the illness may cause, the amount of coverage that may be adequate. Generally, an amount three to four times your annual income should be aimed for.
A factor that will affect the amount of coverage you obtain or aim for is the monthly premium that you have to pay. Your general health, your lifestyle, illnesses that you already had or known medical conditions in the family are elements taken into consideration when determining the premium to be paid. Your age and whether you smoke also are taken into account. Factors determining your premium are plentiful that is why having a professional adviser will help you obtain reasonable coverage.
An alternative to critical illness insurance coverage is the income protection insurance that gives a tax-free income if you are unable to work because of injury or illness. The income protection insurance does not specify any illness. it only assesses your capability to obtain and maintain regular work.
If you need to make a claim on your insurance policy, crucial are the guidelines in the policy which are step by step instructions for successful claims. Such guidelines are really strict. Some guideline may ask you to have your claim revised by obtaining a second opinion from another independent specialist having sufficient knowledge of your illness.
Critical illness insurance can be important for your protection as well as for those who are dear to you. When considering obtaining a critical illness insurance coverage, it is necessary to have adequate information and obtain the correct coverage which will serve the intended purpose.

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