Critical Illness Cover and its benefits
South Africa is the place where the first form of Critical Illness Cover was introduced. It was known as Dread Disease Insurance and it covered for a variety of forms of cancer. It has since become a more popular policy around the world. Not as popular as term life insurance but popular no less. It was in the United States that it started to gain some steam as it begin it’s life in North America protecting citizens against the risks of cancer. This was the precursor to today’s policies. It became more popular in the last ten years – in regions of East Asia, North America, and the United Kingdom.
The policies cover you, if you are to become ill during the term of policy. They will cover you against a specific number of illnesses as listed by the insurance provider. At the time of diagnosis you will receive a lump sum of money. It is often tax-free. The types of critical illnesses that will be covered can vary but you can be rest assured that cancers, stroke, heart attack, and most types of heart surgery will be included in a policy like this. Many companies may only cover 5-10 illnesses but they will likely be cheaper policies while over policies could over 100 different illnesses. When you are diagnosed with a critical illness it can be a difficult time on its own, so not having to worry about finances can be very helpful for many people. That way you can focus on getting better.
Critical Illness insurance is originally derived from the South African term “dread disease” but has since changed names, as that term isn’t very marketable (among other reasons). Many firms will avoid using the term dread disease, as it is out of date. There are different names for these policies now – including crisis cover, trauma cover, and living insurance. At one point in time there were very strict conditions regarding Critical Illness insurance and how you are to become ill with one of the conditions but regulations have done away with that. Insurers have also extended the number of conditions in order to tap into a much larger customer segment.
If your social or government insurance covers most of the illnesses then there isn’t much point in getting critical illness cover but make sure you know this before you decide to write off these illnesses. In many cases your social insurance will only cover a small portion and this could leave you in very poor financial shape. Critical illness insurance is much more important in countries that have poor security measures. Even if you live in a country with great health and insurance programs you still might want critical cover just for that extra safety. It means you could have the best possible care no matter what happens.
The additional benefits of these types of policies are many. First of all, you might need money to cover non-medical expenses. Critical illness cover does that. There will be many things in your life that could change if you get a serious illness including the way that you get around in your home and out in public. You might not be able to walk anymore or reach high objects etc. Critical illness policies will cover things like walkers and carts and will help you make your home more livable. It’s all about piece of mind with Critical Illness cover so it really depends how much that is worth to you.
Want to find out more about critical illness coverage, then visit Jim Smithwick’s site on buying this form of cover for your all needs.
