What is Critical Illness Insurance?
Critical Illness Insurance (or Trauma Insurance) is an insurance product in which you will receive a lump sum payment in the event you are diagnosed with one of the specific illnesses listed on the policy.
Unlike Life Insurance, you can benefit from this personally during your lifetime. In the UK, Australia and Singapore payments from these policies are not taxable.
How likely am I to be diagnosed with a Critical Illness?
Cancer – 1 in 2 of us will be diagnosed with Cancer during our lifetimes.
Heart Disease – The world’s biggest killer is ischaemic heart disease, responsible for 16% of
the world’s total deaths – almost 9 million people per year.
Stroke – Strokes are the second leading cause of death, responsible for approximately 11% of global deaths.
Is it expensive?
Cover can be tailored to fit any budget and the cost can be heavily discounted if this is purchased as a ‘rider’ to a Life Insurance policy.
The cost is linked to your age and health. The sooner you take out insurance, the lower the premiums will be. If you keep putting this off, not only will you pay more, but you may no longer be eligible for this. Critical Illness Insurance can only be purchased when you are healthy. Once you have been diagnosed with an illness, it’s too late.
Do I need Critical Illness Insurance if I have Health Insurance?
Health Insurance covers your hospital expenses and any surgical or treatment costs. Critical Illness insurance is not meant to replace this, rather it provides you with additional financial support to cover your family’s living expenses while you take a break from work and focus on recovering.
If your savings are insufficient to support you and your family, should you be unable to work, that is a big sign that you need Critical Illness Insurance. Being diagnosed with a serious illness is stressful enough without having to worry about your finances.
