Critical Disease Insurance-Pros and Cons

When a disease occurs in which an individual is unable to work this type of insurance provides a sum of money which can be used for day to day living expenses. This critical disease/illness insurance can be carried out along with life insurance. As a coin has two sides similarly every insurance has two sides which include advantages & disadvantages:

Some of Advantages of Critical Disease Insurance is:

• Tax Free Sum: Within a period of 30 days of being diagnosed with a disease which is life threatening a critical disease policy gives out a tax free lump sum amount.

• Family Protection: Critical illness insurance is very much required for those who have mortgage or outstanding amounts to pay with a young family to protect.
• Covers upto 30 diseases: This critical health illness insurance plan covers upto 30 diseases which includes kidney failure, major organ transplant, cancer, heart attacks, coronary bypass, multiple sclerosis and strokes.
• Peace of Mind: Critical Illness covers family with a peace of mind in case of critical health insurance. This type of financial insurance relives one from the tension without having financial difficulties leading to recovery of person when unable to work.
• Guaranteed premiums: While premiums tend to be cheaper, it is advisable to get guaranteed premiums as it will save money for a term of critical illness period.

Some of disadvantages of Critical Disease Insurance policy include:

• Additional Costs: Individuals who are struggling to pay even general living expenses may find it difficult to afford critical illness insurance due to their costs.
• Exclusion of certain diseases: Certain diseases like HIV, non-invasive skin cancers and some type of prostate cancers are not included in the critical illness insurance. So before taking up critical illness insurance one needs to check & ensure that policies for which they are looking out for insurance are matching or not.
• Existing medical conditions: Sometimes it may happen that some of the family members may have high incidence of specific illness for such people either the insurance premiums would be high or the disease excluded. Those of who have already suffered a life threatening disease may find that the insurance cover would be excluded from the policy.
• Under-Writing Process: Once the required information is collected underwriters would check that those having a critical illness insurance policy there insurance premiums would be increased. The premiums would be increased for only those that smoke or have a high incidence of certain diseases within a family bloodline or are overweight.

Having seen the pros & cons of critical illness insurance one should consider it essential to make it a point to buy this insurance only when they have financial & family commitments.

But the premium amounts vary and so one should always use a price comparison service to buy this type of insurance policy cover.