Critical Illness Insurance 101
What is covered by critical illness insurance?
There are 24 covered conditions that are covered under a standard critical illness insurance policy.The 24 conditions are:
- Cancer (life threatening)
- Heart attack
- Coronary Artery Bypass Surgery
- Dementia (including Alzheimer’s)
- Motor neuron disease
- Multiple sclerosis
- Occupational HIV infection
- Server burns
- Kidney failure
- Aortic surgery
- Aplastic anemia
- Bacterial meningitis
- Benign brain tumour
- Heart valve replacement or repair
- Loss of limbs
- Loss of speech
- Major organ failure (or on wait list)
- Major organ transplant
How does critical illness insurance work?
If you are diagnosed with one of the listed critical conditions you qualify for a lump sum benefit, based on the amount of coverage that you purchased. There is no need to satisfy a waiting period and you will receive a cheque for the payment of the benefit once the claims process is completed.
How long does it take to get a critical illness payout?
It can be very quick or it can take some time based on the situation and circumstances. For example, someone can make a claim within the first year of having the policy and the insurance provider wants to make sure that the condition did not exist when the individual applied for the policy. The individual would receive a cheque if the claim was approved based on the evidence provided. This claim could take months but would be paid with interest. Someone else could be diagnosed with cancer after having the policy for years and the claim would be paid out in a matter of weeks.
What is the difference between critical illness insurance and life insurance?
Critical Illness insurance pays out once a critical illness is diagnosed. The condition does not have to be terminal, and the benefit is paid out during the life of the insured person. Life insurance, on the other hand, pays out when a person dies of any cause.
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