What is Critical Illness Insurance?
Critical illness insurance will pay out if you get one of the specific medical conditions or injuries listed in the policy. But be aware that not all conditions are covered and policy will also state how serious the condition must be.
Examples of critical illnesses that might be covered include:
- Heart attack
- Certain types and stages of cancer
- Conditions such as multiple sclerosis
Why do I need Critical Illness Cover?
The one distinctive advantage of critical illness insurance is that you are the one who will receive the proceeds, not your beneficiaries. That means you get to use these funds on yourself. Plus, the proceeds from the critical illness are not taxable!
Flexibility in spending
When you are diagnosed with a serious illness, your expenses are not limited to doctor’s fees and medications. You may also need to spend for housekeeping or childcare services while you are recuperating or getting treatment. The proceeds from the insurance are at your disposal – you can spend it however way you like.
Improved quality of life
Once you’re out of the hospital, you may need to hire a nurse to care for you at home. You may also need to install specialized equipment in your home. In addition, you can use your money to do something you’ve always dreamed of – like spend time travelling around the world.
Peace of mind
This provides an additional cushion to prepare you for the unexpected events in your life – such as getting critically ill.
Preservation of assets
When you are diagnosed with a grave illness, you may have to look at your assets to help fund your treatment, rehabilitation and recovery. With funds from a critical illness cover, you don’t have to deplete your assets and you can still leave a heritage and inheritance to your loved ones.