What is critical illness insurance?
- 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?
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?
- Kidney failure
- Heart attack
- Multiple Sclerosis
- Organ Transplant
- Parkinson's disease
- Paralysis of the limb
- Terminal illness
How much does critical illness insurance cost?
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?
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?
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.
Posted: 01 Sep 2007 09:28 Post Subject:
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!
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..
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.