Last Updated: February 2nd, 2024 at 6:45 pm
Understanding Critical Illness Cover can involve navigating through various details and scenarios. These frequently asked questions are designed to address both the basic and more complex aspects of Critical Illness Cover, aiding in your decision-making process.
Critical Illness Cover is an insurance policy that provides a lump sum payment if you are diagnosed with one of the specific illnesses listed in the policy.
Commonly covered illnesses include cancer, heart attack, stroke, multiple sclerosis, major organ transplants, and certain types of paralysis.
While health insurance covers medical expenses and treatments, Critical Illness Cover provides a one-time, tax-free payout that can be used for any purpose, including non-medical expenses.
It depends on the insurer and the condition. Some pre-existing conditions may be excluded or may increase the cost of your premiums.
Each insurer has specific criteria for what constitutes a critical illness, often based on the severity and stage of the illness. It’s important to read the policy details to understand how each condition is defined and covered.
If you are diagnosed with an illness that is not covered by your policy, you will not receive a payout. It’s crucial to choose a policy with comprehensive coverage that aligns with your health risks and concerns.
The lump sum from Critical Illness Cover could affect your eligibility for means-tested benefits. It’s important to consider how receiving a large sum might impact other financial aspects of your life, including any state benefits you receive.
