What is Critical Illness Insurance? What DoYou Need to Know?

When the word insurance comes across to you, you usually think about car insurance, disability insurance, or life insurance. But there is another serious matter in your life that is your critical illness. Yes, there is insurance called critical illness insurance. You should know about this. Your illness should be important to you just like your car. By the time your health may get deteriorate or you may face any sudden serious illness. You are can never stay healthy. So, you should prepare your mind for any unfortunate situation in the future. For any critical illness definitely, you need money. And your expense can hike to the unbelievable level. For that purpose, critical illness insurance can help you and give you hand in your critical situation.

What diseases are counted as a critical illness?

You may get sick at any time but the critical illness is different from the simple illness. Simple illness includes cold, fever, cough, seasonal infection, allergy, and some other common diseases. But critical illness is a bit different and can createa crucial situation for you.The critical illness includes Cancer, Heart attack, Blindness, any organ transplant, kidney failure, paralysis, dialysis, heart valve replacement, bypass surgery brain tumor, stomach surgery.

When you think about the critical illness insurance many questions come into your mind like, why should I buy the illness insurance? I already have disability insurance then why critical illness insurance is necessary? Which insurance policy I should buy, critical illness insurance or disability insurance? When should I buy critical illness insurance?

Let’s jump on the differences between critical illness insurance and disability insurance

Your first dilemma will be clear here. Which insurance is best for you? Critical illness insurance will give you a lump-sum amount if you are diagnosed with any serious disease mentioned above. Your policy will bear the expense of the critical illness. While on the other hand disability insurance will pay you a regular payout if you got disable in an accident. Disability insurance will actually protect your income while critical illness insurance will bear your illness expense on the whole with the lump-sum cash payout.

Further differences between critical illness and disability illness are here below:

1.       Income protection.

If you buy a critical illness insurance policy, it pays off your medical cost if you diagnosed by any critical illness. Disability insurance will pay you out a small portion of your income when you are not able to work more. When you lose any body organ.

2.       Payment intervals.

Critical illness insurance policy is one which gives you thewhole cash amount for your illness. You get this cash amount only once after the diagnosis of your critical illness. While disability insurance policy will give you monthly,a portion of your income.

3.       Benefits.

Critical illness insurance gives you the benefits of the illness you are diagnosed. While disability insurance will give you monthly benefit which relies on the ability to work.

4.       The implication of tax.

Critical illness insurance is tax-free. You will get a tax-free lump sum cash. While disability insurance is calculated as % after the income tax deduction.

5.       Proof requirements.

Critical illness insurance is usually proof of free insurance policy. It does not need any proof of loss of income. It also does not affect your other incomes while disability insurance needs a lot of proof regarding the loss of your income. When you get able to go back to your work, disability insurance may get a stop.

Find out the right critical illness insurance policy for you

Critical illness insurance has a different policy for a different illness.  You should consider and review all the policies carefully before buying. You must have knowledge about each policy, its premium amount, time duration, and recovery amount. Everyone has its own specific terms and conditions. Ask all the details before buying.