Critical Illness Insurance Advice

deVere Group specializes in providing critical illness insurance advice for our clientele.

Life insurance and critical illness cover are arguably the two most important parts of robust financial planning. As part of conducting a financial health check, our financial planning team will help you highlight how much coverage you require and search the market to provide the best option.

On this page, we look at what critical illness insurance is, who is eligible for it, what the benefits are and types of critical illness insurance available.

If you would like to set up critical illness insurance, please click on this link to arrange a quote.

What is Critical Illness Insurance?

Critical illness insurance is a type of insurance policy secured by individuals looking to financially protect themselves if they are diagnosed with a serious illness covered by the policy they purchase.

Given the uncertainties of life, critical illness insurance provides policyholders with a financial safety net in the event of a serious illness. It can be an especially useful tool for those who may not have sufficient savings or insurance coverage to cover the costs associated with a major illness.

Benefits of critical illness insurance:

Security: A critical illness diagnosis can prove to be costly, with many people falling into bankruptcy as a result of the illness. Medical bills, hospital stays, and ongoing treatments quickly mount up to unmanageable levels leaving many with few options. Critical illness insurance can provide a lump sum payment that can be used to cover these costs, as well as other expenses like living expenses, transportation, and caregiving.

Versatility: A critical illness diagnosis can prove to be costly, with many people falling into bankruptcy as a result of the illness. Medical bills, hospital stays, and ongoing treatments quickly mount up to unmanageable levels leaving many with few options. Critical illness insurance can provide a lump sum payment that can be used to cover these costs, as well as other expenses like living expenses, transportation, and caregiving.

Protection: Unlike traditional health insurance policies that cover only medical expenses, critical illness insurance provides a lump sum payment that can be used for any purpose. Policyholders can use the money to pay for treatments, lost income, or other expenses that arise from their illness. • : Being the sole provider for your loved ones can be stressful. Critical illness insurance ensures that your loved ones are financially protected in the event you are no longer able to work.

Tax: In many countries, critical illness insurance premiums are tax-deductible, and lump sum payments are tax-free.

How does critical illness insurance work?

The illnesses covered within the policy can vary depending on the insurer. Typically, critical illness insurance policies include conditions such as cancer, heart attack, stroke, organ transplant, kidney failure, and major organ failure.

If the policyholder is diagnosed with one of the illnesses and satisfies the conditions outlined within the terms of the policy, the insurer will pay out a predetermined sum to the policyholder. This payout can be used to cover medical expenses, living expenses, or any other financial obligations that may arise as a result of the illness.

How does critical illness insurance work?

The policy is relatively simple; policyholders are required to select the duration of the policy, i.e. how long they would like to be covered for, the amount of coverage they wish to have, and the names of any beneficiaries. In the event of your death, the policy will pay out your policy following the agreed-upon terms.

What’s Covered?

As we noted above, the specific coverage of a critical illness insurance policy is subject to the terms of the policy you purchase. Here is a general list of illnesses that are likely to be covered by any critical illness insurance policy.

Cancer: Critical illness insurance typically covers various types of cancer, such as breast cancer, lung cancer, prostate cancer, and others.

Heart attack: Most policies cover heart attacks.

Stroke: Coverage may include various types of strokes.

Major organ transplants: Some policies may cover the cost of organ transplants, such as liver, kidney, or lung transplants.

Kidney failure: A policyholder may be covered for chronic kidney disease, which can require dialysis or a kidney transplant.

Multiple sclerosis: Although less likely than other names on this list, critical illness insurance policies may cover this chronic autoimmune disease.

Parkinson’s disease Like multiple sclerosis, this is a degenerative disease that may be covered by some critical illness insurance policies.

What’s Not Covered?

Critical illness insurance does not cover every eventuality or situation. Here are some common circumstances under which your critical illness insurance policies may not cover you:

Pre-existing conditions: Critical illness insurance typically excludes coverage for any pre-existing conditions. Pre-existing conditions are defined as any medical condition that existed before the policy was purchased.

Self-inflicted injuries: Any injuries that are intentionally self-inflicted are usually excluded from critical illness insurance coverage.

Substance abuse: Any illness or injury resulting from drug or alcohol abuse is typically not covered by critical illness insurance.

Terminal illness: If you have been diagnosed with a terminal illness or have a life expectancy of fewer than 12 months, your critical illness insurance policy may not cover you.

Non-disclosure of information: If you fail to disclose any relevant medical information or provide false information during the application process, your critical illness insurance policy may be invalid.

How much critical illness insurance can you get?

The amount of critical illness insurance you can get is based on several factors. Generally, most insurers offer critical illness insurance coverage in increments of $10,000 to $50,000, with some offering coverage up to $1 million or more.

The amount of coverage you need will depend on your circumstances. To determine this, insurers will analyze your income, financial obligations, and the potential costs associated with treating a critical illness.

As a result, applying for critical illness insurance will involve providing information about your medical history, age, lifestyle, and other factors that may impact your risk of developing a critical illness. The insurance company will use this information to determine the cost of your insurance and the amount of coverage you are eligible for.

Types of critical illness insurance

There are two main types of critical illness insurance:

Comprehensive Critical Illness Insurance: This type of policy covers a wide range of critical illnesses. It typically includes cancer, heart attacks, strokes, and major organ transplants. Some policies may also cover other conditions such as kidney failure, paralysis, or blindness.

Specific Illness Insurance: This type of critical illness insurance covers a specific critical illness, such as cancer or a heart attack. These policies are typically less expensive than comprehensive policies but are risker due to the decreased coverage.

Critical Illness Insurance Advice

deVere Group specializes in providing critical illness insurance advice for our clientele.

If you would like to set up critical illness insurance, please click on this link to arrange a quote.

What is Critical Illness Insurance?

Benefits of critical illness insurance:

How does critical illness insurance work?

How does critical illness insurance work?​

What’s Covered?

What’s Not Covered?

How much critical illness insurance can you get?

Types of critical illness insurance

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How does critical illness insurance work?