Critical illness insurance that helps cover the costs associated with living with an illness and allows you to focus on your recovery. Even with government healthcare, one critical illness can be a tremendous financial burden. Typically, the insured person will receive a lump-sum amount to use as you want, following the diagnosis of one of the 25 covered conditions and a survival period of 30 days. The money can be used to pay for non-covered treatment by government health plan or cover for non-medical costs related to the illness, including transportation, child care, out-of-country needs etc. It could also help with someone unprepared for the financial hardships that may come with a critical illness diagnosis such as expenses when a spouse takes time off work.
It is always better to understand and to know the truth and the myths of critical illness insurance before you go for it.
- People usually think disability insurance and critical illness insurance are the same. They are completely two different policies. Disability insurance provides you an income replacement if you are disabled from work due to a disability, and the amount you receive will be based on your income. Meanwhile, critical illness insurance will provide you a tax-free lump sum amount at one time.
- My policy will cover for all critical illnesses. There will be a list of covered conditions for each insurance carrier.
- Cancer coverage means all types of cancer. There are many different types of cancer and different definitions to protect against the risk. Cancer must meet the definition in your policy.
- I can’t get the insurance if I have pre-condition. Critical illness is available with the traditional underwriting and non-medical insurance.
- Government health plan will take care of everything. It’s true that it will cover for your treatment but not costs associated with living with a critical illness such as transportation, travel expenses, child care, off-work time, out-of-country treatment etc.