Why we need a critical illness cover

Discussion in 'General' started by alexdadda22, Aug 1, 2012.

  1. [FONT=&quot]A critical illness cover provides you a Lumpsum tax free amount that can be used according to your whims and wishes. Moreover, if any unfortunate thing happens, [/FONT][FONT=&quot]critical illness insurance[/FONT][FONT=&quot] safeguards you from exorbitant medical bills, mortgage payments or simply, it will take care of your family and their future.[/FONT]​
    [FONT=&quot]Critical illness cover[/FONT][FONT=&quot] varies from companies to companies. It all depends upon the type of policy you choose and the level of cover, all these factors determine how much premium you pay for the cover and what is included in the cover. However, the Critical illness insurance cover can be tailor made according to your requirements. Moreover, the companies provide additional rider that proffers you a host of benefits.[/FONT]​
    [FONT=&quot]It is necessary that you fully understand Critical illness insurance, as there are many exclusions to the policy. Remember, policies will pay only for illness mentioned in their list and it includes diseases like heart attack, stroke, organ transplant, cancer, coronary heart bypass and multiple sclerosis.[/FONT]​
    [FONT=&quot]For instance, if you're 30 year old, married, and you get a cancer. The first setback would be the loss of a stream of income. May be your company will compensate you for the same and what if, if reverse happens. So, its not just losing of income, it's about losing the peace of mind.[/FONT]​
    [FONT=&quot]Most of us are under the perception that employer sponsored disability insurance is a good substitute for Critical illness life insurance. But you need to understand the fact that disability insurance cover only 60 percent of your income and it may not be suitable for all your treatments.[/FONT]​
    [FONT=&quot]Critical illness life insurance[/FONT][FONT=&quot] [/FONT][FONT=&quot]provides you[/FONT][FONT=&quot] [/FONT][FONT=&quot]a Lumpsum benefit, if you are[/FONT][FONT=&quot] [/FONT][FONT=&quot]diagnosed with critical illness. Some policies will also pay you multiple amounts. For example, you'd get payout if you are diagnosed with cancer, and you will get reduced payment if you suffer from a heart attack.[/FONT]
    [FONT=&quot]With proper planning and evaluation, you will be able to withstand critical illness without digging yourselves deep into debt. It can also act as saving grace in case you need to relocate temporary, like for organ transplant or cancer.[/FONT]
    [FONT=&quot]The policy is available in two forms[/FONT]
    · [FONT=&quot]As an individual policy[/FONT]
    · [FONT=&quot]As a group insurance[/FONT]
    [FONT=&quot]Moreover, if you are planning to buy policies of face value less than $50,000, you don't require a medical examination. [/FONT]
    [FONT=&quot]A word of caution- Before purchasing critical illness policy, you need to read the clauses properly, as to what constitutes critical illness, so don't expect a Lumpsum payment on diagnosis of skin cancer or chest pain.[/FONT]
    [FONT=&quot]The policies can be obtained between the ages of 17 and 70.[/FONT]


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