What Is Critical Illness Cover?
Critical illness insurance is a specialised product designed to protect an individual financially in the instance that the individual contracts one of the covered ailments. Generally paying a lump sum upon a confirmed diagnosis, the money can be used for a diversified set of needs, not as targeted as those associated with major medical cover. There are, however, a great number of conditions that are not covered, and anyone considering purchasing such a policy is strongly encouraged to study it carefully to be assured that the desired protection is available. Furthermore, it is critical to read any policy under consideration for the procedures used to qualify potential claims – this poses a host of pitfalls that can only be avoided by careful attention. Overall, critical illness insurance is a useful product if it is used appropriately and the right policy is selected.
The Mechanics of Critical Illness Cover
When an individual purchases a
critical illness policy, he or she is contracting to
receive a set amount of money in the event that he
is diagnosed with one of the covered diseases. These
tend to include diseases including heart attack,
stroke, or cancer, as well as some of the
preventative procedures associated with these
diseases, like coronary artery by-pass surgery.
Other major diseases and conditions including kidney
problems, blindness, and Parkinson’s are also
Uses of Money Provided by Cover
Where major medical insurance may usually only be used to pay medical bills, once a payment is made by a critical illness insurance provider, the funds may be used for nearly anything designed to defray the cost of the illness. This can range from paying medical bills not covered by medical insurance, to retiring debt, to covering lost income. Furthermore, because the payment is typically a lump sum, the insurer requires almost no accounting of how the funds are used.
Potential Pitfalls of Critical Illness Cover
There are a variety of pitfalls
that must be understood to protect oneself from both
unfortunate circumstances and capricious insurance
companies. In many of these policies, there is a
waiting period between diagnosis and payment. The
insured must survive for a minimum period in order
to receive the benefits that have been contracted
for, and for which premiums have been paid.
Depending on the specific diagnosis, the period may
vary in length, but is typically around thirty days.
It is important to understand, however, the
diagnosis is likely specifically defined by the
policy. Confirmation by a specialist may be
required, or confirmation by a specific test may be
necessary. A specific diagnostic criterion may be
outdated and no longer in common use, but without
the results of this test, the waiting period does
not begin. While the largest and most reputable
carriers try to update these standards, and make
corresponding changes to the coverage of
policyholders, the standards in practice can change
very quickly. Knowing one’s benefits and the
specifics needed to receive the protection that has
been paid for is the only complete defence,
particularly if a carrier wishes to be contentious.
Copyright lifeinsurancepremiums.co 2014 All Rights Reserved