What is Life Insurance with Critical Illness?

05 Jan, 2018 / By

Life insurance policies are often thought to be a product that you buy to provide financial protection for your family in the event of your unexpected death. While this may be the main function of life insurance, this doesn’t mean that your policy can’t offer you benefits during your life as well. Many people like to think that if they take care of themselves, they can avoid serious illnesses. Sometimes, however, critical illnesses occur. If you are concerned about a critical illness affecting your life, and the life of your family, you may be able to add a critical illness rider to your policy that will help to provide you with the financial protection you need.

How Life Insurance with Critical Illness Works

Critical illness is a rider, or add-on, that you can add to your life insurance policy. This rider typically comes at an additional cost. With critical illness, you are able to use a portion of your death benefit to pay for the costs associated with the diagnosis and treatment of a critical, or life-threatening, illness. The amount paid out varies based on the illness and the insurance provider. You also do not need to take out the full amount. Critical illness is there to cover the costs of what health insurance doesn’t cover as well as other costs associated with the illness.

Reasons for Critical Illness

If you have a family history of certain types of critical illnesses, or you are concerned about developing a critical illness, life insurance with critical illness may be something to consider. There are many types of critical illnesses that can impact your life, and the life of your family. These include heart disease, diabetes, stroke, cancer, kidney failure, paralysis, and more. Critical insurance is there to provide you with financial protection so that you can cover the costs of your care. The money can also be used for things other than the costs of your medical care, such as making mortgage or rent payments or the costs of other living expenses.

Who Qualifies for Life Insurance with Critical Illness?

The coverage you receive varies from one insurance company to another. Every illness may have limitations, restrictions, or other requirements. It is important to note, however, that if you have already been diagnosed with a critical illness, you may not be able to purchase critical illness. The time to buy this type of coverage is when you are still healthy. This type of coverage is designed for individuals with a family history of a critical illness and provides you with protection in the event that you develop it later. Critical illness can also help to provide protection if you have high deductibles or gaps in your health insurance. It can provide great relief during an otherwise chaotic time.

How to Get Life Insurance with Critical Illness

Every insurance company will have their own requirements during the application process. Most insurance providers will require a detailed medical exam to assess your overall health. This may include getting your weight, body mass index, blood pressure, and cholesterol levels. A complete physical from your primary doctor may be required or a nurse practitioner may be sent to your home to take your vitals and have you complete a questionnaire. The healthier you are when you apply for critical illness, the easier it will be to get the coverage you are seeking, which can then provide you with protection should you later be diagnosed with an illness.

While we all like to think that we can avoid critical illnesses, sometimes they just happen. With critical illness added to your life insurance policy, you can avoid the disruption in your life and the financial hardships that could ensue should you be diagnosed with one. If you are concerned about a critical illness affecting your life, it may be time to consider adding a critical illness rider to your life insurance policy.

Jennifer Hamilton

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