You can never be sure what can happen to you in life. So it is good to know that you always have an option. With serious illness cover, your loved ones and you can be, in some way, secured in case of your impaired health. 

Such situations don’t have to happen, especially since medicine has advanced and got in the way of many serious illnesses. You can even adhere to some simple tips from this source to live a better life. But when it comes to health and financial security, better safe than sorry.

If you worry about your family’s financial future, you may need to think about buying a serious illness cover. It’s important to consider your needs when you choose an insurance product. Knowing the answers to some crucial questions can help you decide if serious illness coverage is right for you. 

What Do You Get With This Insurance

Age brings with it the possibility of getting sick. Many factors will affect this, such as genetics, lifestyle, working conditions, current health, and so on. Some diseases can appear without previous visible symptoms and leave you unprepared. You can prevent this by deciding to buy an extra benefit sold with life insurance or mortgage insurance.

You should find out in advance which diseases are covered by the policy you pay for. A critical illness cover amount will pay you for expenses arising from illnesses that are considered to be critical. These are strokes, heart attacks, diabetes, Parkinson’s disease, cancer, etc. Some disabilities like blindness and deafness are marked as severe conditions, too, as they diminish your workability. 

Who Needs It? 

Many illnesses are considered to be critical. But no policy covers them all. You need to check with your insurer to decide what diseases fall under their coverage. You’re free to have several different policies with different insurers (and pay several premiums every month) to be sure you cover all the risks.

Critical illness coverage is a great thing for those who have no other insurance. Nowadays, it is not desirable to be irresponsible towards your health and workability and not protect yourself in any way. If you get sick, you and all those who depend on you will be in trouble. You don’t want that.

Also, suppose your employer doesn’t provide you with any coverage in the event of your temporary incapacity for work. In that case, it is a good idea to have a backup plan. That can happen if you work illegally or are not employed at all. If you have a steady job, you can also consider income protection insurance.

Another reason why you should ensure your finances in case of illness is the debts you have to pay no matter what. These are mortgages and loans with installments that are waiting for you every month. Maybe you can ‘stop’ them for a while, in agreement with the lender. But these debts will be waiting for you until you settle them, even if you are still not working.

Your premiums keep rising if there’s any reason that qualifies you for a higher payout. You’re obliged to do regular medical check-ups and updates on your health. That will be the basis for expenses you’ll have on serious illness insurance.

Getting a Lump-Sum

After being diagnosed with some severe condition that will make you disabled for work, you take out a serious illness cover. Your cover can be paid for in three ways – tax-free lump sum, monthly premiums, and benefits. Monthly premiums are covered based on your age, and the benefits are paid on a weekly or fortnightly basis.

The lump-sum can be tax-free. That comes in handy if you don’t have enough savings to get through the unemployment period due to illness. Remember that different insurers offer different options. You may get sick without getting coverage because your balance doesn’t fall under the type of insurance you paid for.

Some insurers might provide you with the option to make claims for expenses related to your treatment. For example, Low serious illness cover can include costs for arranged hospital stays, physiotherapy, nursing care, prescriptions, and specialist treatments such as eye surgery or hearing aids. The lump-sum can even be paid into your pension, depending on the time you took out the cover. 

How Much Coverage You Need?

You will calculate the monthly premium amount after taking into account all the costs you need to cover each month. These can be utility bills, rents, loan or mortgage installments, and medical expenses you will have if you fall seriously ill. Your coverage will not be a huge amount, but it will help you get through a difficult period.

How do insurance companies determine the rates for a serious illness cover? In general, the cost of the premiums depends on the insurer and varies according to age and coverage period. Insurance companies will factor in your medical history, lifestyle, a certain level of free-estimate (if you smoke or are overweight, you certainly have a higher risk of getting sick).

So, if you’re young and healthy and need no medical care (so far), you probably won’t pay much for your insurance. If you haven’t had any serious illnesses in the last ten years, you should expect to pay less money for your policy than someone who’s had a hip replacement or gallbladder surgery. But someone who has a serious illness now will likely have to shell out more money for their policy.

As long as you pay your premiums on time, you can have peace of mind. Even the slightest delay can neglect the policy. Try to find the best option for your budget if you don’t want to lose benefits due to one-time negligence.

The disease is especially difficult for those who have children or any family member who is financially dependent on them. The moment you get sick, the priority is your recovery, but you must not neglect your dependants. Although paying for serious illness insurance can be pricey depending on lifestyle, this cost can save you a lot of trouble.

Cite this article as:
Editorial Staff, "Reasons to Have Serious Illness Cover," in Medicalopedia, March 24, 2021, [Permalink: https://www.medicalopedia.org/9627/reasons-to-have-serious-illness-cover/].