Critical Illness: Insurance Protection for the Cautious

Submitted by Anonymous (not verified) on Sat, 09/01/2007 - 08:46
Financial stability during critical illness is possible to attain. Treatment for critical illness may be long drawn and expensive. But with critical illness insurance you can save for the time when you need medical help for a serious illness. You obviously do not like to think that you may suffer from an illness so fierce that it might be financially difficult. But if it does happen are you prepared? Critical illness insurance will help you prepare for such a situation. We are all at risk of falling ill anytime. However, only a few think about getting critical illness in time.

What is critical illness insurance?

Critical illness insurance is a form of health insurance that saves your money that you pay as premiums to be used if you become seriously ill in future. A critical illness policy intends to pay for:
  • Treatment costs
  • Recovery aids cost
  • Debts (if any)
  • Lost income replacement. This loss of income should be due to the inability or decreasing ability to earn
  • Change in lifestyle

Who needs critical illness protection?

Anyone can need critical illness coverage. No one can predict when someone will fall sick and will suffer from a serious illness. However, if what you earn prevents you from getting enough disability insurance you should consider getting critical illness insurance.

If you are in a profession that involves high health risks that keeps you from qualifying for the traditional disability insurance, think of getting critical illness protection. Again if you have to pay a high medical deductible or if you do not have health insurance, you may get this critical illness policy to support you financially in future should you suffer from a serious illness.

What does critical illness cover?

What a critical illness policy will cover depends on the insuring company that provides protection. A typical insurance policy that covers critical illness usually may include diseases like:
  1. Stroke
  2. Kidney failure
  3. Heart attack
  4. Blindness
  5. Paralysis
  6. Alzheimer's
  7. Multiple Sclerosis
  8. Blindness
  9. Stroke
  10. Organ Transplant
  11. Deafness
  12. Parkinson's disease
  13. Paralysis of the limb
  14. Terminal illness
With advancement in technology and science there have been several diseases that are no longer considered as critical and similarly there may be many that will be removed from the critical illnesses list in the future. What will finally be covered is dependant on the market need for the coverage, the tough competition between insurance companies as well as what the policy holder believes is his benefit.

How much does critical illness insurance cost?

Usually the cost for getting critical illness insurance is lower if you are of a younger age. It, however, depends on your age, the amount of coverage, the medical condition that you are in, any financial obligations, dependants as well as the kind of health care that you need. All these will determine what critical illness quotes you will receive.

To get a good critical illness insurance quote you may do some shopping. Remember to consider the above mentioned conditions while you shop for a critical illness insurance policy.

Who is eligible for critical illness insurance?

Anyone who hasn't had a history of critical illness before is eligible. However, if you did have a critical illness policy and made a claim already you may not be able to get another one unless you buy additional benefit riders. Smokers are usually considered eligible but have to pay high premiums. Age, gender as well as family's medical history are considered to determine the premium.

If your family has a history of hereditary disease(s), then you could become ineligible for critical illness insurance. People with pre-existing conditions, HIV or those who are overweight may also be rejected. If you have already made a critical insurance claim, your policy will normally terminate. If you need to buy another policy you may have to do so by also buying additional benefits. However, some companies may also exclude the serious medical conditions that have already had.

For some companies a critical illness insurance policy usually terminates by the time you reach 65 to 75 years of age.

How to make critical illness claims?

You may simply make a claim if you are diagnosed with a serious illness. The best part about critical illness claim is that the critical illness benefits received will be tax free. To begin with the claims procedure, you (or anyone on your behalf) should let your insurance company know that you have been diagnosed with a serious medical condition. The insurance company then sends a claim form where you need to fill in the details of your illness as well as the doctor treating you.

Once the form is filled and sent to the insurance company, the company will now get in touch with your doctor and investigate your claim. If they are confirmed that you have actually suffered from the critical illness that they have covered in their policy, your claim will be paid with immediate effect.

Your insurance company may ask you to furnish medical evidence to support your claim - reports of a medical examination, bills, a doctor's certificate and the like. One in five critical illness claims is turned down as a result of non-disclosure. So, claims forms need to be filled carefully and with a relaxed mind.

A serious illness changes the way you live your life. This is a time when an individual already goes through great emotional stress and if he is not financially prepared it is all the more stressful. According to medical professionals, when people learn about their critical illness they suffer emotionally. You need enough time and finances to recover from a critical illness. If you can be prepared for it then it will do you good. Investing in critical illness insurance can help you prepare for any serious medical condition that may arise in future and that you may have not thought of yet.

Hi, I would like to know about Critical Illness policy. Is there an age limit to qualify for it?


Posted: 01 Sep 2007 09:28 Post Subject:

Hi Insquizzer,

Nice question. Insurance geniuses are betting on ‘Critical Illness Insurance' because according to studies a large section of US population is going to need the Critical Illness coverage to cope up with the rising medical costs. However, it is not very easy to qualify for it. You can't obtain coverage for any pre-existing condition. Therefore, it's likely to exclude health problems like- HIV, cancer, obesity or any other genetic diseases.
Although, there is no minimum age limit for purchasing the critical illness policy but some firms set 70 years as the maximum age limit to qualify for it. Additionally, the coverage will cease once you attain the age of 65 or 70 (depending upon the insurance company's policy). Juanita

Posted: 01 Sep 2007 01:02 Post Subject: policy values!

Hi Guys..

I think we have had this discussion sometime that some of the disability benefits are purely on the basis of listed critical illnesses. But we must remember one thing that for the critical illness benefits to be achieved from your disability coverage on that part of the policy value will be disbursed to you which is proportional to the extent of the said illness.

But for a critical illness policy, the entire policy value will be released to you! Hope you could guess that beforehand.. fatman

Posted: 01 Sep 2007 01:05 Post Subject: as soon as..

Hi all!

So, now its become easier for all of us to opt for a critical illness policy, rather than the common belief that for critical illness too we should rely on disability policies. And more so, when we know that as soon as one of the enlisted deceases are diagnosed, we are surely gonna get the full value! all the best! ShoppinMaster

Posted: 03 Oct 2007 06:30 Post Subject: Post shifted to the right forum....

Hi! shaky, your post has been shifted to the following URL. Please click on it to view your post.


Posted: 09 Aug 2010 04:41 Post Subject: crtical illness

I took out a policy for criticall illness when an insurance rep was at my work. I electronically signed up 6/22/10 and recieved my info that the policy takes effect 8/1/10. Unfortunatly I have been diagnosed with invasive breast cancer . I had my biopsy completed on 7/28 and unofficial results given 7/30 over the phone. I had my first consultation 8/3 with a surgeon explaining my options. I have surgery scheduled for 8/20... and radiation after that. Was I diagnosed to early to obtain my benefit? REAL BAD LUCK! I hope not. Thanks for you time

Posted: 09 Aug 2010 06:47 Post Subject:

While you cannot be faulted for "misrepresentation", your condition probably is excluded as a preexisting condition. You'll need to read the contract to know for sure.

Posted: 09 Aug 2010 02:46 Post Subject: critical insurance

Thanks for your reply. As far as misrepresentation goes, I had no idea of my condition when I signed up for the policy. I had a screening mamogram done one month after in which they sent me for and ultrasound and a biopy that followed 7/28. It wasnt until I recieved those reults on 8/2 from my Primary care doc on the phone and was consulted on 8/3 by a surgeon in his office. My policy became effective 8/1. Technically I was not diagnosed until after my policy became effective. I had heard there is often a waiting period after efective dates anyways, is this true? What is the best way to proceed. If it is excluded, do I have to continue to pay the premiums?The condition can not be staged until after surgery on 8/20? Thanks for your time

Posted: 09 Aug 2010 10:25 Post Subject:

You'll have to read your contract where it discussed "Preexisting Conditions" or "Preexisitng Conditions Exclusions" for the answer to your question. It probably states something like, "any condition for which the insured received advice, diagnosis, or treatment in the *6 months to 2 years* prior to the policy inception will be excluded from coverage for *6 months to 20 years* after the policy effective date."

Posted: 15 Jul 2011 06:25 Post Subject: feoQMMUEvCwQ

I was raelly confused, and this answered all my questions.

Posted: 28 Jan 2012 06:43 Post Subject:

Do critical illness payouts have to be filed on income taxes in NC?

Posted: 28 Jan 2012 01:59 Post Subject:

The premium payments on a Critical Illness insurance policy won't entitle you to any tax relief. The payout on the other hand is tax free.

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