Is Critical Illness Insurance Worthwhile?
Critical Illness insurance pays a lump sum benefit when you have a covered major illness such as heart attack, stroke or cancer. The benefit comes 30 days after diagnosis and is tax free. Critical illness coverage is referred to as a living benefits policy as the benefit goes to the owner, not the beneficiary.
So, do you need it? Is it Worthwhile?
As you may have guessed that probably depends on your circumstances. If you are wealthy with significant assets this coverage may not be that important to you. If an unpaid leave of absence from work for 6 months or more would cause you financial stress then it is probably worth considering.
I have seen many claims for critical illness, and the money from the policy has always been welcome. These claims are quite common, I can think of 10 people in my immediate circle who have had critical illness claims, or would have if they had the coverage.
Having a critical illness such as a heart attack is stressful. It may be a major wake-up call that things in one’s life are not going well in all regards. On top of that there can be immediate stress as to how one will provide an income during the period of illness.
However, people with critical illness coverage have options. They have enough money coming in from the policy so they can afford to take the time to reassess how they want to proceed. It brings peace of mind.
Critical illness insurance can be affordable for most people as there are several payment options. There are also optional benefits available that may or may not be right for an individual. Unfortunately you do have to be healthy to qualify for this insurance so it is best to get it while your health is still good.
Many people are covered against some medical problems by their group insurance at work. However, group policies usually do not cover a critical illness so this coverage is something you may want to consider. As insurance brokers we would be happy to walk you through the different options that are available to you.