Is Critical Illness Insurance Worth It?

What is Critical Illness insurance?

Used as a form of protection, critical Illness insurance provides a lump sum benefit in the event an individual is diagnosed with one of the covered conditions and survives for a specified period of time after the diagnosis or defined event occurs.  Most critical illness insurance plans cover 25 conditions and the survival period is 30 days.

How Is the Critical Illness Insurance Benefit Paid?

Critical illness is a living benefit; unlike life insurance, the benefit is paid to the insured, not the beneficiary.  The critical illness benefit payment is not contingent on the ability or inability to work during recovery.

Unlike disability insurance, full recovery will not affect the benefit payment.  The benefit is paid independent of other medical insurance plans and the insured is not accountable for the usage of the funds.  They can use the funds in any way they choose – there are no restrictions or claw backs to the benefit.

Who Is Eligible for Critical Illness Insurance?

Critical illness is a living benefit; unlike life insurance, the benefit is paid to the insured, not the beneficiary.  The critical illness benefit payment is not contingent on the ability or inability to work during recovery.

How Much Will the Benefit Cover?

Critical Illness insurance benefits range from $25,000 to $2,000,000.  Most Critical Illness policies have the option of a Return of Premium rider on death or surrender of the policy.  These riders will return a percentage of all eligible premiums (up to 100% should you wish to surrender the policy for any reason) after your policy has been enforced for a certain period of time or should you pass away.

What are the most common covered conditions?

As stated, with most critical illness insurance policies, you can be insured to cover 25 health conditions including:

• Heart related issues like strokes, heart attacks, coronary artery bypass surgery and valve replacements
• Problems with major organs like transplants, kidney failure and other major organ failure (including wait lists)
• Degenerative diseases like Alzheimer’s, Parkinson’s, Multiple Sclerosis and motor neuron disease
• Loss related to health issues like loss of limbs, speech, hearing, sight, or your independent existence
• Life threatening cancer related diseases including benign brain tumors
• Plus many other conditions like occupational HIV infection, paralysis, burns, coma, bacterial meningitis, aplastic anaemia and aortic surgery