Do You Need Critical Illness Insurance?

If you are currently trying to work out what type (or types) of health insurance you really need, it is important understand the precise nature of critical illness policies. This form of coverage is long-term, and it is intended to provide you with a single large payment in the event that you are diagnosed with one of a range of significant illnesses stipulated in your policy. The following key facts will help you to decide whether your particular situation means that you need this type of insurance.

Reasons why you might need critical illness insurance
* It gives you a reasonable amount of financial protection against the costs associated with a range of common and serious medical conditions. For example, the bulk of policies will cover heart attacks, many forms of cancer, multiple sclerosis, kidney failure and strokes. Most policies cover approximately thirty illnesses.

* Critical illness policies typically pay out relatively quickly after you are diagnosed with a serious illness. If your situation meets the criteria laid out in your policy, you can expect to receive a lump sum within around thirty days.

* Many forms of critical illness coverage will also pay for the costs incurred if you become seriously disabled (whether this is due to an accident or an illness).

* If you do not have substantial savings, this type of coverage can give you peace of mind regarding your mortgage and any outstanding debts you have. However, you will free to decide how to make the best use of the money you receive.

* If you develop an illness that is covered by your policy, you will receive money to make any necessary alterations to your house (such as access ramps and other changes that accommodate diminished mobility).

* Many people are disappointed by the benefits that they receive from the state in the event of a serious illness, and critical illness coverage tends to be a lot more generous.

* The bulk of critical illness policies also pay out if you have a child who becomes seriously ill. If this happens to one of your children, you will still be covered by the policy and can still expect to receive a lump sum if your own health becomes significant compromised.

* If you do not have a particularly good benefits package supplied by your employer, you will not receive much coverage if you need to take time off work due to illness. In this type of case, a critical illness policy can be extremely helpful.

Reasons why you might not need critical illness insurance
* Although many serious conditions are covered by most policies, some are not usually covered (including some forms of cancer that may seriously impede your ability to work).

* Some policies many have very strict standards that dictate how severe a covered condition must be before you can expect a lump sum to be received.

* Typically, you will not be covered for any health problems that you were aware of before purchasing the policy (even if they become much more serious).

* If you already have plenty of savings that would help to pay for your living expenses or mortgage if you were no longer able to work, critical illness coverage may be unnecessary.

* Similarly, you could probably do without this type of insurance policy if you happen to have a spouse or partner who could cover your living costs, mortgage and other expenses in the event of your suffering a serious illness.

* If you are more concerned about caring for your dependents, you may prefer to take out a life insurance policy instead of (or as well as) critical illness coverage. The latter does not pay out in the event of your death.

In general, the pros of being covered for serious illnesses tend to outweigh the cons; the peace of mind that it provides can be invaluable. However, although knowing the above information makes it easier to decide whether you want or need a critical illness policy, investigating the details of different policy options may also help you to make up your mind (and ensure that you get the best possible deal).

Sam Jones the author recommends that readers visit the price comparison website uSwitch.com for info about critical illness insurance.