With critical illness insurance, the insurer will pay out a lump sum of tax-free cash if you are diagnosed with one of the disabilities, illnesses or medical conditions that are listed in the policy’s details.
However, it is important to be aware that not all conditions are covered under the various critical illness insurance plans that are available today. You should not simply assume that you are covered – this is a mistake that a lot of people make.
Some of the most common illnesses that you will find on critical illness plans include multiple sclerosis, certain types and stages of cancer, heart attacks, and strokes.
Needless to say, the illnesses and conditions that are covered differ from policy to policy. Some will cover medical care and non-medical assistance and senior home care, whereas others only cover the former, yet they arguably free up funds to help with the latter.
There are some insurance plans that will make a smaller payment for conditions that are not severe. Knowing what is not covered is just as important as knowing what is covered. Some serious illnesses might not be listed, and it is important to be aware of this.
Critical Illness Insurance Quotes – What Are They Based On?
Critical illness insurance quotes can differ extensively. This can make it confusing for anyone that is buying critical illness insurance for the first time. It can be tough to know what is a fair price. Plus, if someone else is also purchasing this type of cover, and they have been quoted a cheaper fee, you may be wondering why. We aim to clear everything up below.
The reason why the quotes provided by critical illness insurance companies differ so much is because they are based on a number of different factors. First of all, critical illness plans have different levels of coverage. Some plans will only cover a very small selection of illnesses, injuries and disabilities. There are then other plans that will cover extremely rare conditions. So, this can, of course, have a major impact on the premiums you pay monthly, quarterly, or annually.
In addition to this, you play a role in the price that you are quoted. The job you have will impact the premiums you pay. This is because some jobs come with a higher risk than others, which means that you may have to pay more money each month. For example, if you work at a height or you deal with explosives, it is likely that your premiums will be more expensive.
Your age and whether you currently smoke or if you have smoked in the past will also be considered. Your health is a major factor, and insurers will look at your current health, your family medical history, and your weight.