Critical Illness Insurance Explained

by : Keith Mallinson

Copyright (c) 2007 Keith Mallinson

When you are young fit and healthy, it is hard to plan for the day when that might not be the case but critical illness insurance is something that we all need to make provision for. Providing financial peace of mind for your family by taking out critical illness insurance, for a mere few dollars each week should something happen to you, does not to seem as important to most of us as having that extra, luxury cup of coffee every day during lunch.

Studies have shown there is a strong possibility that at some stage in your life you will suffer from a critical illness so most of the critical illness insurance providers now cater for these conditions. Speaking of statistics, recently they have revealed that at least twenty percent of men will suffer from a critical illness before they retire. For women, this figure is slightly lower with only one in six being affected by a critical illness before retirement.

Lack of knowledge or belief in the chances of contracting a critical illness might be the main reason why so few adults take out critical illness insurance protection, according to insurance companies. Although critical illness insurance is taken out for many reasons, the majority of people use it to protect their mortgage repayments. Nowadays, critical illness cover and life insurance can be linked directly with mortgage repayments.

Increasingly, the internet is being used to buy insurances online and this is now extending to critical illness insurance. Unfortunately, being a relatively new facility, there are new problems that occur as more companies start offering services over the Internet for the first time. This is because many companies who provide critical illness insurance wish to have the applicant take a medical examination by an independent physician to ensure there is nothing untoward right from the start. If you're in the unfortunate position of having to make a claim on your critical illness insurance policy, the last thing you want is insensitive hassle or apparent non co-operation from your insurer.

Smokers, unfortunately, are treated as higher risk critical illness insurance applicants, including anyone who has smoked within the previous year and as a consequence are placed in a high risk category. Smoking is a potential threat to your life therefore, premiums will increase. Having said this, the insurance company will also consider your age, type of work you do, general health, and pastimes before it issues the critical illness insurance. Critical illness insurance will protect you if your condition is terminal or critical, you need certain surgery or if you become unemployed owing to the condition. If you have family responsibilities then there can be no debate about the benefits of having a critical illness insurance plan set up and in place should the worst happen.