Critical Illness Insurance
If you were to experience either a stroke, cancer, or a heart attack, which just so happen to be three of the most common health conditions or issues covered under a “critical illnesses” policy, you would likely face not just emotional and health challenges, but potential financial ruin. Consequently, more companies are now providing critical illness insurance in their benefit plan packages.
This kind of insurance provides compensation in the form of a lump-sum, tax-free cash payment should the individual be diagnosed with any one of the three above cited critical illnesses. It is important to understand that the individual must also first survive for a certain set amount of time as laid out in the conditions of the policy in order for the pay-out to begin. Due to medical advances over the last few years, many critical illnesses are no longer death sentences for most people. However, being a survivor comes with substantial ongoing medical expenses.
Someone who is in a family with a history of any of these critical illnesses can be vulnerable to substantial potential costs should he or she be afflicted. Many may not be able to afford the ongoing medical treatment in these cases. Note that many companies provide the option of this kind of insurance to their employees as a job perk.
Critical illness insurance coverage is normally a rider that is added on to the usual life insurance policy. It can also be purchased as a stand-alone policy with the lump pay-out sum for policyholders ranging from $10,000 up to $70,000. The premium cost of this type of health insurance is variable due to the age of the person at the time of his or her application, the person’s health, gender, and whether he or she is a smoker.
Though premium payments are not tax deductible with this coverage, any benefits that are paid out during a critical illness are often tax-free. This kind of insurance can provide great peace of mind to the policyholder as the expense of surviving a critical illness can often financially ruin a person. This policy can help to take care of your family if you are no longer able- a wise consideration.