Health insurance has become more like a basic need. Unlike before, when insurance was a preserve of the formally employed, most adults today appreciate the importance of insuring their health against unforeseen illnesses. The policies vary substantially depending on the premium amounts and the risks covered.

Now, health insurance falls into two major categories. The basic insurance covers common, low-risk diseases and critical illness insurance that insures the policyholder against severe, life-threatening conditions.

This article delves deeper into critical illness insurance by exploring the benefits of acquiring this product and basic health insurance.

What Is Critical Illness Insurance?

Critical illness insurance goes by several other references, including ‘critical illness cover and ‘dread disease policy.’ It refers to a type of insurance policy whereby the insurer makes a direct lump-sum cash payment to the policyholder if the latter is diagnosed with certain medical conditions. As expected, the diseases against which the benefits are paid must appear in a predetermined list as part of the insurance cover.

Critical illness insurance is unmistakably referred to as ‘dread disease policy.’ The medical conditions insured are usually dreadful, including cancer, stroke, and heart disease.

How Does Critical Illness Insurance Work?

Critical illness cover works more or less similar to regular insurance policies. The policyholder makes regular premium payments and is entitled to benefits if the insured risks occur. As already indicated, critical illness insurance typically pays lump sum cash amounts to the holder if the risks occur. However, some insurers may structure the policy to pay out income regularly to the insured.

Also, as with many health insurance covers, a dread disease policy may require the insured to survive a specified number of days from when their illness was first diagnosed. This helps the insurer determine that the disease is critical and worth the associated benefits. The survival period varies from one insurer to another. It may also depend on the nature of the illness. But most companies will typically start paying out benefits after the fourteenth day.

And needless to say, the diagnosis must have been performed by a licensed medical practitioner. Some companies may even insist on a second opinion from a different health facility before paying out the benefits.

Lastly, critical insurance companies may differ in who they pay the benefits. Some companies pay the benefits directly to the insured as long as they can produce proof of treatment. Others pay the health providers and health care workers for services rendered to the policyholder during the treatment period.

What Are The Benefits Of Critical Illness Insurance?

Critical Illness Insurance Insures Against Severe Medical Conditions

This is arguably the most significant benefit of taking a critical illness cover. Critical illness insurance protects the policyholder against diseases not typically covered by traditional insurance policies. Examples include;

• Cancer
• Brain tumors
• Alzheimer’s disease
• Bacterial meningitis
• Parkinson’s disease
• Paralysis
• Multiple sclerosis
• Stroke
• Aortic surgery
• Coronary artery bypass surgery
• Heart attack
• Heart valve replacement
• Aplastic anemia
• Blindness
• Deafness
• Loss of speech
• Loss of limbs
• Occupational HIV infection
• Motor neuron disease
• Kidney failure
• Major organ failure and/or transplant
• Severe burns
• Coma

From the list above, it’s evident that critical illness insurance doesn’t only cover medical conditions that are expensive to treat. The policy can also mitigate the costs of managing terminal illnesses like cancer.

Critical Illness Insurance Guarantees Medical Services That Are Otherwise Unavailable

You’ve just been diagnosed with stage-two cancer and are keen to start treatment as soon as possible. But upon researching your local city, you realize there’s not even a single cancer treatment center.

Your next instinct is to board the next plane to wherever you can find oncology services. However, there’s still no guarantee that you’ll receive prompt treatment there.

When you take a critical illness insurance cover, you’re not only assured of protection against life-threatening illnesses. You also get access to medical services that are otherwise unavailable in your locale.

That’s for the simple reason that most critical illness insurance companies partner with healthcare facilities that offer the specific medical services against which their clients are insured. Besides, traveling from your current residence to a new location can offer extra therapeutic benefits.

Critical Illness Insurance Mitigates Basic Healthcare Costs

Critical illness insurance may not directly cover common diseases like flu and malaria. However, the policy can mitigate the costs associated with treating these infections.

For instance, high blood sugar is a significant risk factor for diabetes. Diabetes produces a host of symptoms, including vision loss.

Note that blindness also happens to be one of the common problems covered by critical illness insurance. Therefore, critical illness cover would be handy if you suffer diabetes-induced vision loss.

The policy can pay for the benefits required to correct your vision. In the process, you’ll have managed to treat one of the primary complications of diabetes even if your critical illness insurance policy doesn’t necessarily cover diabetes.

Critical Illness Insurance Mitigates Daily Living Costs

A lot of money is wasted driving or commuting to hospitals every day. For people with chronic illnesses that require continuous monitoring, the monthly transport costs can quickly run into hundreds of dollars.

Critical illness insurance not only takes care of the actual medical bills. Some policies also meet all associated expenses, such as transportation and the costs of purchasing mobility equipment like wheelchairs.

This improves the insured’s daily living costs as they don’t need to work extra hard to meet their day-to-day expenses during treatment.

Critical Illness Insurance Relieves Age-related Anxieties

Most diseases covered by critical illness insurance generally afflict seniors. As we age, we can’t help but wonder when our organs will fail or when blood flow disorders will result in ischemic stroke.

These concerns are bound to make you anxious, and anxiety only reduces the quality of life.

A dread disease policy comes with the peace of mind knowing that you can boldly face many life-threatening old age diseases. Even if the condition turns out to be terminal, the mere fact that you can meet the treatment expenses without digging into your pockets is enough assurance.

Final Word

Critical illness insurance offers numerous benefits over and above basic insurance covers. So, if you’ve been considering taking up a dread disease policy, we hope you have extra motivation to take the plunge.

Remember to do your due diligence when looking for the right insurance company. The most important consideration is to insist on insurers offering critical illness cover and basic health insurance plans.