Should I buy critical illness insurance when my body is healthy? This is probably a common question asked by many people. In fact, the risk of incurable diseases, especially fatal diseases can occur at any time, even when the body is young and healthy. Therefore, preparing financially well before the risk of disease is extremely necessary. Austin Insurance Services will help you find out why you need critical illness insurance as soon as possible.
- 1 What is critical illness insurance?
- 2 Reasons to buy critical illness insurance early
- 3 Everyone is at risk of serious illness
- 4 The cost of treating a critical illness is very expensive, often higher than you can afford
- 5 What is special about critical illness insurance?
- 6 What should I pay attention to when participating in critical illness insurance?
What is critical illness insurance?
Critical illness insurance is a health care product and provides direct financial support to participants in case they are diagnosed with a critical illness. The purchase of terminal illness insurance and critical illness insurance is really a solution to comprehensively protect participants and their whole families against the financial burden caused by illness risks.
Critical illness insurance has a wide coverage, up to 77 common fatal diseases according to the list of regulations of the Department of Health and Human Services. In addition, insurance for critical illness is also divided into different stages, in order to support the financial needs of participants in accordance with their health status at each time.
Critical Illness Insurance pays you a lump sum benefit in the event that you or your spouse are diagnosed with an illness like cancer, stroke, or heart attack. When you elect Critical Illness, you choose a dollar amount– for example, $5,000 or $10,000, and that is the amount that will be paid to you or a covered dependent if you are diagnosed with a critical illness that is covered by your plan.
Critical illness coverage generally costs less if you purchase it through your employer, rather than on your own. No one wants to consider the possibility of getting a critical illness, but by purchasing this insurance, you can minimize the financial impact on you and your family.
Reasons to buy critical illness insurance early
Serious illnesses can disrupt lives and have a huge impact on health. To be mentally and financially stable against all risks of illness, each person should actively build a health protection plan early, by owning a critical illness insurance package, because:
Everyone is at risk of serious illness
Do not wait until you are sick to buy insurance, because then health problems may prevent you from choosing a satisfactory insurance plan. Today, critical illness insurance not only protects against the risk of disease at an early stage, but the products also increase protection many times over for all stages of the disease: early-stage and later stage.
The cost of treating a critical illness is very expensive, often higher than you can afford
When encountering a serious illness, the patient has to pay many different fees for the treatment process such as the cost of hospitalization, medicine, surgery, medical equipment, transplants, radiation therapy, travel expenses, and expenses. daily life.
The amount of treatment is extremely expensive, often more than you can afford. At that time, critical illness insurance offers many benefits, helping to pay part or all of the cost of treatment. This helps the insured to feel secure to continue treatment and recover health soon.
No impact on family finances: With solid financial support from insurance, relatives can still quit their jobs to take care of sick people in the family without worrying too much about money.
Building a savings fund in the future: If there is no risk during the effective contract period after the contract ends, the participant can receive the total maturity benefit with a high cumulative value, accompanied by bonus benefits to increase account value and bonus to increase investment value. With this money, participants can accomplish many goals in the future.
Currently, there are many insurance companies that provide insurance products against the risks of fatal diseases, which can ensure benefits for participants against 77 serious diseases recognized by the Department of Health and Human Services. In particular, the insurance packages are also linked with a prestigious hospital system so that customers can feel secure for treatment in optimal medical conditions and facilities.
The product also applies to adults and children and can be attached to many other complementary products to increase the range of protection.
What is special about critical illness insurance?
Consultants say that each health insurance plan will have different policies and benefits, and buyers must dig into the details of each product to find the package that best suits them. Two of the most popular health insurance plans today are Critical Illness and Specific Illness Insurance. Here are the differences between these two insurance plans.
Critical Illness Insurance Package
This type of insurance covers life-threatening and terminal illnesses such as cancer, cardiac arrest, kidney disease, and severe burns. When the claim is successful, the insurance company will pay a lump sum to cover the cost of the treatment. This money can be used to pay for treatment, hospital fees, medicine, or rehabilitation.
Typically, up to 20 fatal diseases are covered under the Critical Illness Plan. Waiting time to receive compensation after signing the contract is usually 3 months. However, some insurers still offer policies with a waiting period of less than a month even though a patient can survive for a minimum of 30 days after a diagnosis is made before a claim is accepted. . Factors such as medical history, age, family records of any genetic diseases… are considered by the insurance company before signing a contract with a guest.
Specific illness insurance Packages
This type of insurance is only for a specific disease, covering the entire cost of treatment of the disease, from diagnosis to hospitalization… and medicines. Since this plan only covers one illness, the cost is lower than the Critical Illness Insurance plan. This is an attractive plan for people who are looking for affordable health insurance that protects them against a specific illness they think they may have due to lifestyle or genetics…
Customers should buy this insurance plan for diseases such as diabetes, kidney disorders, stroke, heart problems… During the pandemic, insurance companies are also providing Insurance programs for Covid-19. Anyone diagnosed with the stated conditions is eligible to claim a treatment payout.
Specific illness insurance packages usually do not stipulate a waiting time, customers can claim immediately after the disease is diagnosed, payment costs are also disbursed when the verification process is completed. Therefore, customers should know their own health, calculate the costs that may have to be spent if they get sick to choose the right insurance policy.
Health is one’s “precious wealth”, so everyone needs to take care of it carefully. Everyone’s health will be different based on a variety of factors such as age, lifestyle, family medical history… A good insurance plan is to have a policy tailored to the needs of each person. client. It not only helps protect customers against the risk of illness but also supports their loved ones if the amount of treatment is too large.
What should I pay attention to when participating in critical illness insurance?
Here are some experiences to buy critical illness insurance for first-timers:
Find out information about the insurance company: You should have a good understanding of the insurance company’s history, size, agency, customer service, interest rate information, or investment fund. This contributes to ensuring peace of mind about the company’s ability to pay insurance benefits when the insured event arises.
Consider your own financial ability: Consider your current income situation to decide which critical illness insurance is appropriate. Do not try to pay fees beyond your ability to pay. Instead, choose a product with a reasonable premium, along with the benefit of flexible premium increases and decreases, to maintain a long-term life insurance policy.
Analysis of benefits of each product package: Critical illness insurance has many products with different benefits. Depending on your health care needs, you should choose the right insurance plan. If the selection process is difficult, you can consult a financial professional to help make the best decision.
Note about exclusions: Insurance will not pay for critical illnesses that are not on the list of diseases recognized by the United States Department of Health and Human Services. When participating, you should know the exclusions, which are not covered by insurance, to ensure maximum personal benefits.
Health is always a solid starting point for all plans in life. Each of us should participate in critical illness insurance as soon as possible to build an effective financial backup solution, feel secure against all disease risks.