When to Buy Critical Illness Insurance

Critical illness insurance is a type of insurance policy that will provide you with a certain amount of money if you suffer a critical illness. This is different from regular medical insurance as it pays you directly once you experience a qualifying illness. While this type of insurance can be beneficial, it is not necessary for everyone. Here are a few things to consider about when you should buy critical illness insurance.

How it Works

In order to collect a payment from this type of insurance policy, you will have to experience a critical illness that is listed on your policy. Some examples of critical illnesses that may be covered include heart attacks, strokes, kidney failures, organ transplants, and cancer. When you are diagnosed with one of these illnesses, you do not necessarily have to be disabled in order to collect money. Once you are diagnosed, you can file a claim with your critical illness insurance company and they will send you a check for a specific amount of money that has been agreed upon for the disease that you have. You are then free to use this money however you see fit. You can use it to pay for your health insurance deductible or to pay for treatments that are not covered by insurance. You can even use the money to pay for regular expenses like your mortgage or groceries.

Lack of Savings

If you have a lack of savings, you might want to consider purchasing critical illness insurance. Many of these illnesses would take you out of work for an extended period of time. If you do not have an emergency fund that would be able to pay your bills for you for at least three to six months, then you might want to purchase critical illness insurance. This type of insurance would give you a lump sum of money to help pay for your bills while you are unable to work. Many times, when experiencing a critical illness, you will have additional costs that come up as well. Without substantial savings, you will need something else to help you get through the hard times.

Family History of Illness

Another factor that you may want to consider is your family medical history. If several of your ancestors have experienced heart attacks or been diagnosed with cancer in the past, there is a higher likelihood that you will also experience one of these conditions. Many of the critical illnesses that people have are hereditary and are passed on to subsequent generations. If you are getting older, you need to be aware of these risks. By purchasing a critical illness insurance, you will be doing your part to plan ahead for this type of diagnosis. If you do not come down with a critical illness, the small payments for premiums will still be well worth the type of security that they afford you. 

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