Critical illness protection is a valuable component in any comprehensive life insurance policy. This feature allows you to receive a payout if you receive a diagnosis of a critical illness. When shopping for a critical illness policy, you will find that there are many different types of coverage available. While the variety allows you to customize a plan to your specific needs, it also makes it confusing to know which plan is best for you. This article will help you understand critical illness coverage, so you can find the best plan for your unique situation.
Types of Critical Illness Coverage
Two of the most common types of critical illness coverage include:
- Mortgage insurance for critical illness only
- Term insurance for critical illness only
Mortgage insurance is used to make mortgage payments if you become critically ill. This policy generally decreases in cost and value, as the mortgage balance on your home goes down. Term insurance pays out a single lump sum if you are diagnosed with a critical illness. This type of insurance maintains the same value throughout the life of the policy. To ensure you get the best critical illness coverage for your needs, consider what those needs are and plan for your coverage accordingly.
Features of Critical Illness Coverage
Critical illness protection is usually not dependent on your ability to work after a diagnosis. This money can be used to ensure you can afford the best possible medical care or allow your spouse to take time off to care for you during your illness. It can also be used to cover assistance within the home, whether it is care for the children or a home nurse that comes weekly to care for you. The money can be used in whatever way you see fit, unless you have taken out mortgage protection that is specifically earmarked for your mortgage payments.
Critical illness protection is typically restricted to a list of conditions. Basic policies may only cover a handful of diagnoses, while a comprehensive plan may cover many more. It is important to go through the list of approved illnesses carefully before purchasing a critical illness plan, to ensure you get the best value for your money. As you go through these lists, consider your family medical history to ensure the plan you choose will cover the most likely diagnosis you might receive.
Critical illness coverage offers peace of mind to both you and your family if you are diagnosed with a serious illness. By shopping around for coverage, you can ensure you get the best policy for your needs.