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Summary: Critical illness insurance is necessary to have knowledge or understanding of the policy and the different types of plans offered. Good insurance coverage can give you peace of mind and an adequate level of protection. It is necessary to obtain the necessary advice and help when choosing a critical illness insurance package.
Diagnosis of a critical illness, of course, leads to a traumatic and worrying time. For many such sufferers, one of the immediate worries is the very practical financial one of continuing to make ends meet when it might no longer be possible to work – especially if there is also a family or other dependants to think of.
Since critical illness insurance is typically designed to help allay some of those financial worries, it might be worth looking briefly at exactly what critical illnesses are covered and how this particular insurance works.
What’s covered?
Although it is a naturally quite fundamental question, there is no simple answer since different policies adopt different definitions of a “critical illness”. Before deciding on a particular insurer, therefore, prospective policy holders might want to examine closely the list of specified illnesses.
As a general rule, of course, the more restricted the list, the cheaper the premiums are likely to be. This also means that there is likely to be a policy available to suit most pockets.
Whatever the coverage of Ubezpieczenie od chorób krytycznych, however, it might be noted that most policies exclude certain types of cancer and that some claims might be subject to the insurer’s own medical examination and assessment of the condition or illness.
How does it work?
The principles are simple and straightforward. The policyholder pays a fixed premium each month and, in the event of him or her being diagnosed with a critical illness (as defined by the insurer), a single, tax-free, lump sum benefit is paid out to the policyholder.
The way in which such a benefit is spent is entirely up to the policyholder, but might be used to replace lost income from work, to help fund any alterations that might be needed to the current living arrangements for a critically ill patient, or for buying in specialist nursing or health care.
Critical illness Ubezpieczenie w Wielkiej Brytanii provides cover for an agreed term – which might typically be as short as 5 years or longer. Some insurers, however, may offer a greater degree of flexibility by allowing renewable term cover, by which the policyholder is able to renew the policy at various intervals.
Other insurers have options that allow for the insured term to run for the remaining life of a mortgage. In other words, this might be used as an alternative to mortgage life insurance, whereby the risk of being diagnosed with a critical illness is insured for the term of the mortgage and the insured benefit might be calculated with reference to the outstanding mortgage to be paid.
Combined critical illness and life insurance
An increasing number of insurers now offer the option of combining critical illness insurance with life cover. With such a combined policy, a single monthly premium covers the policyholder not only against the risk of being diagnosed with a critical illness but also the guarantee of a benefit paid to the policy holder’s nominated beneficiaries in the event of his or her death. Although the single premium is probably lower than the cost of insuring against critical illness and purchasing life cover separately, policies are likely to be restricted to a single payout.
Types of critical illness coverages
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 insurance to be regarded as critical illness insurance, it must provide coverage for advanced levels of cancer, severe heart attack, and strokes that lead 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 emergency services.
Assesses your capability to obtain and maintain regular work
An alternative to critical illness insurance coverage is income protection insurance which 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 guidelines 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 critical illness insurance coverage, it is necessary to have adequate information and obtain the correct coverage which will serve the intended purpose.
In specific cases, the policy can be made up in such a way that it ensures a regular monthly payment to the policyholder. Certain surgical procedures are also considered under this insurance coverage.
