A Guide to Critical illness Cover

April 26, 2024

What is Critical Illness Cover?

Critical Illness cover gives you a financial cushion if you're diagnosed with one of the conditions listed in your policy. It’s a tax-free payout that can help with treatment costs, mortgage, rent, or even those much needed home modifications like wheelchair ramps. Get the lowdown on how it works, when you might need it, and what to keep in mind when you’re shopping for it.

Which illnesses does it cover?

Critical Illness Insurance has your back with a payout if you end up with one of the specific ailments or injuries listed in your policy. But heads up: what’s covered can differ wildly between insurers.

You might be covered for:

• Cancer

• Heart Attack

• Stroke

• Multiple Sclerosis

• Parkinson’s Disease

And yes, many policies also cover permanent disabilities caused by injury or illness. Some even give out smaller payments for less severe conditions or if one of your little ones are affected.

But, there are some exclusions:

• Hypertension (that’s medical talk for high blood pressure)

• Injuries like broken bones

Oh, and most policies will spell out just how severe the condition needs to be to get that sweet payout.

Do I need Critical Illness Cover?

YES!

If you’re hit with a serious illness, the last thing you need is to be stressing about how to juggle your mortgage and bills. Critical Illness Cover swoops in to give you peace of mind, so you can focus on what really matters—getting back on your feet and feeling your best.

How much does Critical illness cover cost?

Monthly payments (or premiums) for Critical Illness Cover can be a bit of a mixed bag, depending on your policy and personal quirks.

Here's the lowdown on what can affect the cost:

• Your Age: Because, well, we all get older.

• Smoker Status: puffing away on a cigarette or vape might puff up your premiums.

• Health: Your current health, weight, and family history can shake things up.

• Job: If your job is high-risk, expect those premiums to follow suit.

• Level of Cover: More cover means more cost.

If you’re in the “high-risk” category for a specific condition, that condition might get you an exclusion on your policy, or your premium might get a bump.

Now, about how you pay:

Reviewable Premiums: These are like a rollercoaster—reviewed every few years and likely to climb higher.

Guaranteed Premiums: These stay as steady as a rock, though they might cost a tad more upfront. But hey, at least you won’t have any nasty surprises down the line!

So, weigh your options, and pick the policy that suits your style—and your wallet!