For many people, critical illness insurance can make a difficult time a bit easier. Critical illness insurance (CI) is a form of medical insurance specifically intended to cover the huge medical bills which can accompany the diagnosis of cancer, heart disease, strokes, and other major life-threatening illnesses. Payouts are prompt after the diagnosis is confirmed, freeing you from the burden of finding a way to pay for treatment.
As with other types of insurance, there are many different types of CI insurance available, depending on your needs and your situation. The best way to determine what policy is best for you is to talk to an experienced life and health insurance expert. When you do, these are some of the major options you’ll be discussing.
Your Options When Choosing A Critical Illness Insurance Policy
- Permanent vs term insurance
This is an option that comes up in many types of insurance. Permanent insurance will cover you from the day the policy starts, and potentially until the end of your life if you continue to pay your premiums. Term insurance, on the other hand, is only valid during a certain period of time, such as until the age of 65 of 75.
Generally speaking, a permanent insurance policy will cost more up-front, but the premiums will not go up over time. A term policy is cheaper initially, but the premiums will tend to increase at the end of the term if you choose to keep (renew) the policy.
- Full coverage vs. major illness only
The most common type of critical illness insurance covers twenty-nine types of life-threatening diseases. These can include forms of:
- Heart surgery
- Brain surgery
- Degenerative diseases like Alzheimer’s
- Major organ transplants
- Loss of limbs
However, it is also possible to get lower-cost policies that only cover the most major and common types of illness. This would be a particularly good option for those whose family history points towards a high likelihood of certain diseases.
- Individual vs business
Most CI insurance is an individual policy, but it is possible to get business-based CI insurance as well – particularly if you are the owner of the business. Then, the CI payout could be used to cover relevant business expenses, as well as your own treatment.
Need Help? Contact Desjardins Financial Security Independent Network
Desjardins has the experience and the policies to bring you real financial security in times of medical crisis. Contact us to learn more!