Critical illness cover, also known as Critical Illness Insurance, is a long-term insurance policy to cover specific serious illnesses listed within a policy. Should the worst happen, it gives ‘lump sum’ – a one-off payment, to help pay for your mortgage or rent, debts, or pay for alterations to your home such as wheelchair access should you need it, but it’s your choice how you spend it.
Examples of Critical Illness - Heart Attack, Stroke, Cancer, Conditions such as Multiple Sclerosis. Most policies will also consider permanent disabilities as a result of injury or illness. It only pays out once and then the policy ends.
Do you need it?
Critical illness cover could be considered if:
You don’t have savings to tide you over if become seriously ill or disabled You don’t have an employee benefits package to cover a longer time off work due to sickness
Types of Critical Illness Policies.
Critical Illness Cover Could be Taken as a
Term Plan with No Cash Value
As a Whole of Life Plan Which offers a Cash Value at any given point of time
Term Plan
Advantage of Term Plan
Low Premium
Disadvantage of Term Plan
Premium can be revised once in 5 years based on your health conditions
There is no cash value for the policy
It is widely seen that insured tends to see this as an expense in the long run as discontinue the policy
Whole of Life Plan
Advantage of Whole of Life Insurance
Pay premium for a fixed duration only
Has a cash value, hence acts as a regular savings also
Insurance cover throughout the life
Disadvantage of Whole of Life Insurance
Higher premium compared to a Term Plan
Please go through below link to read more about some of the leading providers globally. Zurich , Metlife
Please go through the below link for an informative video on Insurance
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