What are the benefits of a Critical Illness Policy?
By Pardeep Garg
| Published: 03 August 2021
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Life insurance is very crucial in the uncertain world we live in today. There are a number of underlying reasons that can cause an unexpected life-threatening illness due to our lifestyle. In recent times, the cases of heart, lung and other critical diseases have gradually increased, and hence, getting life insurance with critical illness cover has become extremely important.
Critical illnesses are diseases that can be life-threatening, like heart disease, cancer, lung disease, and require immediate surgery or transplant. Since the treatment process for such diseases is long and needs a huge sum of money, gathering funds in an emergency can be like lifting a mountain. Therefore, it’s advisable to go for life insurance with critical insurance cover. Now that we know the importance of a critical illness policy, let’s dive into the advantages of such policies.
Benefits of Critical Illness Cover with a Term Life Insurance
Life insurances, in general, assure financial assistance to the policyholder’s family if an untimely event results in the death of the policyholder. However, a simple life insurance policy does not cover critical illnesses and consequences related to them. But the good thing is that a number of insurance providers offer critical illness cover with term life insurance that cover the cost of your medical bills during treatment or death incurred due to the illness. Following are some of the key benefits of owning a life insurance policy that provides critical illness cover.
Financial Assistance for Medical Expenses - An insurance policy with critical illness cover provides financial assurance in case of any emergency arising due to life-threatening diseases. It covers all the expenses right from the diagnosis until the treatment. Remember that critical illnesses require long-term treatment and medical expenses can cost you a fortune. However, if you hold an insurance policy with a critical illness cover, then you don’t need to worry about the expenses incurred during the treatment.
A Lump Sum Payout - The payouts for critical illnesses are paid in full when you need them in urgency. For example, if you hold a life insurance policy of AED 500,000 which has AED 150,000 as critical illness coverage, then at the time of diagnosis or treatment of the critical illness, you will be paid AED 150,000 in full to bear the medical expenses incurred. If the person dies of that critical illness, then the full death benefit will be provided to the policyholder’s family members.
Easy and Quick Settlement Process - The claim process of critical illness is quick and easy. The amount of critical illness coverage is paid in full at the time of diagnosis and treatment. If the policyholder is diagnosed with a life-threatening disease mentioned as a critical illness in his/her life insurance, he/she can claim the coverage amount within 4-6 weeks. This not only makes it easy to bear the treatment and medical expenses but also increases the chances of survival of the policyholder. Hence, the critical coverage proves to be of great help with its fast settlement process.
An Additional Benefit to the Term Life Insurance - A critical illness cover is an added advantage to your life cover. Your life insurance assures financial help to your family members in case of an unfortunate event resulting in the death of the policyholder. But with a critical illness cover, you get an additional benefit where you can claim financial assistance if you are diagnosed with a life-threatening illness. In addition, you are still entitled to claim the death benefits in an event of death during the treatment of the critical illness.
Guaranteed Survival Benefits - A critical illness cover is actually a type of survival benefit that you get at the time of diagnosis or treatment of the critical illness. The claim process takes roughly around four weeks and it is a guaranteed benefit that you receive as per the clauses of your insurance provider. Moreover, this amount is paid in lump sum and proves to be of great help in arranging funds for the treatment and medical expenses incurred during the treatment. The amount insured in the critical illness cover will be paid in full at the time of claim, subject to medical proof.
Stress-Free and Peaceful Mind - Having a critical illness cover also supports you psychologically. You do not have to worry about arranging a huge sum of money in case of any emergency. Usually, a life-threatening illness appears out of the blue when you least expect it and also brings a huge burden along with it. During such times, owning a critical illness cover can prove to be really helpful as it takes care of all the financial requirements. This will give you peace of mind and make you stress-free.
Things to Remember Before Opting for a Critical Illness Cover
Having a critical illness cover with term life insurance is always beneficial; however, there are certain things to keep in mind before you go for a critical illness cover to maximise your benefits. Following are some important things to note before going for a critical illness cover in your term life insurance.
List of Critical Illnesses Covered - Before going for a critical illness cover, it is crucial to go through the list of all critical illnesses covered in the policy. You can then select the one that provides coverage for a large number of illnesses, thereby ensuring protection against most of the terminal illnesses.
Risk Coverage in Critical Illness - Various companies provide risk coverage against critical illnesses. Do a comprehensive research of various risk coverage provided by the companies before selecting one.
Amount of Critical Illness Coverage - The insurance companies offer full monetary benefits that are insured under critical illness coverage. The amount payable at the time of claim is equal to the critical illness cover that the policy owner chooses. The individual must carry out an extensive research of the critical illness coverage amount before selecting the life insurance policy.
For example - If an individual chooses a term life insurance of AED 100,000 with critical illness coverage of AED 30,000, then the individual can claim AED 30,000 upfront at the time of diagnosis and treatment of critical illness. The upfront amount will be reduced from the total coverage while the term life insurance is still in place.
How Susceptive You are to a Critical Illness - It is important to speculate the type of lifestyle an individual has and what kind of critical illness he is susceptible to. Moreover, the person can analyse the family history and make a note on which type of illness cover he may acquire. Once done, search for the term life insurance that provides coverage to such terminal illnesses before selecting a policy.
A life insurance policy with a critical illness cover gives added advantage to the policyholder. It not only ensures death benefits during the untimely demise of the individual but also ensures survival benefits in the form of critical illness cover. The critical illness coverage amount can be claimed easily in case of emergencies arising due to life-threatening diseases and can be employed for the treatment and medical expenses.