Critical Illness Cover and its benefits
In 1983, the first form of critical illness cover was introduced in South Africa. It was known as dread disease insurance and has quickly became a popular form of insurance around the world. It was originally sold as a way to protect yourself from cancer in North America and it covered a variety of types of the disease. This “cancer policy″ was the original critical illness cover and has became quite popular in Europe, North America, and even parts of Asia.
The policies cover you, if you are to become ill during the term of policy. They will cover you against a specific number of illnesses as listed by the insurance provider. At the time of diagnosis you will receive a lump sum of money. It is often tax-free. The types of critical illnesses that will be covered can vary but you can be rest assured that cancers, stroke, heart attack, and most types of heart surgery will be included in a policy like this. Many companies may only cover 5-10 illnesses but they will likely be cheaper policies while over policies could over 100 different illnesses. When you are diagnosed with a critical illness it can be a difficult time on its own, so not having to worry about finances can be very helpful for many people. That way you can focus on getting better.
The term Dread Disease Insurance didn’t really catch on around the world so it was soon marketed under different names to help popularize this form of insurance. You wont hear many firms calling it that anymore. Instead, they will use alternatives like trauma cover, crisis cover, or even living insurance but Critical illness cover and critical illness insurance are the most popular. At one point in it’s history critical illness cover had very strict guidelines as to when it would payout but that has changed in recent years. Now it is a safe form of insurance that has strict guidelines that dictate when someone will or will not be paid out. A lot of insurance providers have expanded the number of conditions in order to be able to tap into a much larger customer base.
If your social or government insurance covers most of the illnesses then there isn’t much point in getting critical illness cover but make sure you know this before you decide to write off these illnesses. In many cases your social insurance will only cover a small portion and this could leave you in very poor financial shape. Critical illness insurance is much more important in countries that have poor security measures. Even if you live in a country with great health and insurance programs you still might want critical cover just for that extra safety. It means you could have the best possible care no matter what happens.
The additional benefits of these types of policies are many. First of all, you might need money to cover non-medical expenses. Critical illness cover does that. There will be many things in your life that could change if you get a serious illness including the way that you get around in your home and out in public. You might not be able to walk anymore or reach high objects etc. Critical illness policies will cover things like walkers and carts and will help you make your home more livable. It’s all about piece of mind with Critical Illness cover so it really depends how much that is worth to you.
Learn more about Critical illness cover. Stop by Jim Smithwick’s site where you can find out all about Mediclaim and Critical Illness Cover and what it can do for you.
