If you were to experience either a stroke, cancer or a heart attack, which just so happen to be three of the most common health conditions or issues covered under a critical illness policy, you would likely face not just emotional and health challenges, but potential financial ruin. Consequently, more companies are now providing critical illness insurance in their benefit plan packages.
This kind of insurance provides compensation in the form of a lump-sum, tax-free cash payment should you be diagnosed with any one of the three critical illnesses cited above. It’s important to note that you also must survive for a certain set amount of time, as laid out in the conditions of the policy, in order for the payout to begin. Due to medical advances over the last few years, many critical illnesses are no longer death sentences for most people. However, being a survivor comes with substantial ongoing medical expenses.
If you have a family history of any of these critical illnesses, you can be vulnerable to substantial potential costs should you also be afflicted. Many people would not be able to afford the ongoing medical treatment. Therefore, many companies are now providing the option of this kind of insurance to their employees as a job perk.
Critical illness insurance coverage is normally a rider that is added on to your usual life insurance policy. It can also be purchased as a stand-alone policy with the lump payout sum ranging from $10,000 up to $70,000. The premium cost for this type of health insurance is variable due to your age at the time of application, your health, gender, and whether you’re a smoker.
Though premium payments are not tax deductible, any benefits that are paid out during a critical illness are often tax-free. This kind of insurance can provide great peace of mind, as the expense of surviving a critical illness can often lead to financial ruin. This policy can help to take care of your family if you are no longer able to – a wise consideration.