Critical illness insurance is an insurance policy that involves payment of large amount of money when the policyholder catches one of the illnesses in the insurance policy. The insurance premiums are payable regularly just like other insurance policies. Different countries have different terms and conditions of the payout after the diagnosis of the illness.
Most insurance companies payout after 8-14 days. It is however, very important to shop wisely for the insurance company with the most favorable terms and condition before deciding on the company to take the policy from. They refer to this period as the period. This is because the lump sum payment is after surviving this period depending on the number of days in the terms and conditions of the insurance company. In the agreement, the insurance company will decide on the specialist to diagnose the illness in order for the company to decide on how to payout the lump sum.
Pros of critical illness insurance
Critical illness insurance cover helps protect people who have health conditions. The cover is for helping these patients pay for their bills during these difficult times. This is a very challenging period especially if the patient does not have money to cater for the bill. The cover will help them get through this period with ease and enable these patients to recover or get through it just fine.
It is important to estimate the probability of the occurrence of the illness in order to stand a chance of getting the payout. If there is a reputation of heart condition in the family, chances are that the policyholder will get a heart condition in the near future. It is therefore advisable to check on the list of illness that the insurance company covers before signing the contract with them.
The lump sum is usable to pay for the treatment of the illness or to support the patient during the recovery. Most of these patients will be able to work and earn a living. This finance will help them live their life just fine as they await recovery in order to get back on their feet and support themselves financially. If they have a terminal illness, they could use this money to finance their regular checkups, which usually cost a lot bearing in mind that they will do this for the rest of their remaining life.
Cons of critical illness insurance
Cons of critical illness insurance are that the illness may not occur until the death of the policyholder. This would be a great loss, especially if the policyholder was young. Although one can never know of the future, it is advisable to calculate the of the occurrence of the illness in order to determine on the illnesses to take cover.
It is a disappointment if the policyholder does not survive the survival period. This is because the policyholder will not benefit from the insurance cover, yet the main aim of taking the cover was for them to benefit from it.