What You Need to Know About Critical Illness Insurance

No one likes to get sick. The idea of lying in bed all day while you feel unwell is difficult enough, but then it could also get worse in more serious conditions. Not only is it physically and emotionally draining, but it could severely hurt your finances as well. It is therefore necessary to be covered in situations like this.

In this article, we will share with you a few important things about critical illness insurance. We'll show you what usually are the diseases covered how it protects you in your time of need, and a few features you need to be aware of. If you're ready then let's get started.

What Critical Illness Insurance Is

Formerly known as Dread Disease Insurance, this is a type of insurance that covers you when you suffer from a serious or life-threatening disease. Different insurance companies vary in the type of coverage that they provide, although there are certain conditions that they commonly cover. These include heart attack, cancer, and stroke. So before you sign up for this type of insurance with a certain insurer, always make sure that you are aware of the types of conditions that they cover.

How Critical Illness Insurance Is Paid Out

Critical illness insurance is commonly paid out as a lump sum payment. This arrangement is ideal to help you settle your medical expenses early on. Aside from that, you may also use the money to pay for your other expenses such as your mortgage, credit card debt, and household bills.

Features You Need to Look Out For

As with other types of insurance, critical illness insurance has typical features that you need to look out for. This is important as some features might break the deal for you if you don't watch out. For one, critical illness insurance may only be offered by an insurer as an add on, which also means you have to pay extra for it. So try to decide for yourself if the cost is indeed worth it. Another thing is that you can expect to pay higher premiums if you have pre-existing conditions. Confirm this with your insurer as they might refuse to cover you altogether.

Whichever insurance company you choose, it is important that you get the right coverage for your needs. Here at Rate Detective, our consultants are ready to provide you with a rate comparisons of 12 Australian insurers. Contact us today for more details!

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Published on February 2-th, 2013 in Insurance
Damon Rasheed is the CEO of Rate Detective, an Australian financial service comparison sites specialising in Life Insurance, Income Protection Insurance and home loans. Damon holds a Master's Degree in Economics from the University of Melbourne and has been involved in many start-up internet businesses.
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