What is critical illness insurance?
Critical illness insurance, otherwise known as critical illness coverage or a dread disease policy, is an insurance product in which
the insurer is contracted to typically make a lump sum cash payment if the policyholder is diagnosed with one of the specific
illnesses on a predetermined list as part of an insurance policy.
The policy may also be structured to pay out regular income and the payout may also be on the policyholder undergoing a surgical procedure, for example, having a heart bypass operation.
Why buy Critical illness coverage?
A Critical Illness benefit can help you cover expenses like taking time off work due to illness, get a second medical opinion or
treatment in another country. Besides, if you have any outstanding loans like a home loan or a car loan, the payout can help with
dealing with the monthly payments. The payout can also be used by your family as a substitute for your income that may be
compromised due to illness.
If you do not have Critical Illness benefit, you may have to dip into all the hard-earned money that you have saved. The high cost
of treatment can erode years of savings in just a few months. However, a critical illness benefit offers the financial support you
need at the time and helps keep your other savings intact for their respective objectives.
