As we grow old, our health tends to become feebler than it used to be. Besides, life expectancy keeps increasing, which means we must be ready for when the golden years arrive. Being able to find affordable health care isn’t as easy as it used to be, though there are still plenty of options available. Critical illness insurance is another part of the health care spectrum that is worth considering, especially when we are reaching an advanced age.
In order to decide whether or not to acquire a critical illness insurance policy, we should consider some different aspects of this type of coverage. To begin with, we need to fully understand what exactly critical illness insurance means. We should also understand what these policies would cover. Lastly, knowing what other options we have available will helps us make a better decision.
What Exactly Is Critical Illness Insurance?
Critical illness insurance is a type of coverage that provides policyholders with a lump sum cash benefit when a specific critical health condition is diagnosed. This tax-free benefit helps cover the expenses of a serious health emergency that a regular health insurance policy wouldn’t.
This type of coverage came around 1996 when heart-attack survivors had to face financial burdens during their recovery. A regular medical insurance plan would not cover these expenses, and the need for additional coverage arose.
What Does Critical Illness Cover?
As it is usually the case, different providers will offer different coverage on their policies. However, there are several critical health conditions and illnesses that most insurers will cover. Such conditions include heart attacks, strokes, organ transplants, coronary bypass, and some types of cancer. Also, other providers might offer coverage for kidney failure and even ALSD.
A critical illness insurance plan doesn’t only cover the medical expenses related to a given emergency. Policyholders can use the benefit to cover non-medical expenses that result from the illness. These expenses would include transportation, temporary housing, child care, etcetera.
Are There Any Other Options Available?
Despite what we might think, critical illness insurance doesn’t come at a significantly high cost. Most policies tend to cost somewhere around $25 to $50, depending on the coverage and insurance company. However, we should remember that these policies do come with limitations and restrictions.
If we want to look for other, more flexible or affordable options, there are other alternatives for coverage. Disability insurance, for example, could help us cover our living expenses if we were unable to work for medical reasons. Opening a health savings account or an emergency fund can be another excellent way of being prepared for a medical emergency.