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Things to Consider Before Getting a Critical Illness Insurance Policy

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Are you in the lookout for a critical illness insurance policy? There are a number of policies available in the market.

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Things to Consider Before Getting a Critical Illness Insurance Policy

Are you in the lookout for a critical illness insurance policy? There are a number of policies available in

the market. But before you decide, you should carefully study your available options to ensure that you

get yourself the best critical insurance and to have as comprehensive cover as you can afford.

Let’s discuss some of the things that will tutor you on how to buy critical illness insurance:

Individual needs

Take a look at you and your family’s specific set of needs and ask yourself some very important


oIs there someone else in the family who is earning an income?

oHow many years do you still have before you fully pay off your mortgage?

oHow old are your children and dependents?

oHow much life and critical illness cover do you need?

oWhat is your level of your debt?

oWill life insurance suffice, or do I need critical illness insurance?

These questions should help you to determine how much sum and what kind of insurance you need.

Type of policy

Some of the choices that you have are:

1.Separate critical illness policy

2.Life and critical illness combined

3.Severity based policies

What is important here is, to understand the difference between a critical illness as a primary insurance

and a combined life and critical illness policy is that when a claim is made from the beginning, the life

insurance policy will still be effective. But, for the latter, once a critical illness claim is claimed, the life

insurance cover will also terminate. For severity based policies, payments will be made in percentages,

depending on how majorly severe the illness of the insured is.

Premiums vs. budget

You can get a policy you can afford, according to your budget. Otherwise it will just be a waste if you buy

a high level of base coverage only to be forced to ultimately cancel the policy due to your inability to pay

any premiums.

Employee benefits


If your employer provides you with critical illness cover, it should be offered as a standalone policy. This

is provided as a rider to a life or health insurance policy. People who already have some kind of coverage

then you can actually save and opt for an additional personal critical-illness policy to make up for some

shortfall in the employee benefits coverage.

The Policies with guaranteed rates and/or renewability

It is good to ask whether your policy is guaranteed renewable without you having to go through another

medical examination process. When your policy has a guaranteed rate for a certain time period, the

premiums do not change even when your age and medical conditions change.

Additional benefits

You can enhance your coverage by getting these optional benefits:

Return of Premium Benefit

Disability Waiver

Joint life reinstatement option

Total permanent disability

Waiver of premium

Indexation option

Automatic increase of cover option or Guaranteed insurability option

Joint life separation option

Policy Must Haves

Let’s discuss some things you should insist on having:

1.Breadth of cover

The policy should cover illnesses you are concerned about and the ones that are the most

commonly claimed. According to Legal and General’s Claims Report for 2011, some of the most

commonly claimed illnesses are:


Any Terminal illness

Heart attack


Multiple sclerosis

Terminal illness

Any Total and permanent disability

2.Severity based cover for some illnesses


3.Flexibility of the policy term

4.Additional optional benefits

These benefits can help make the perfect policy more comprehensive and also address some of your

more specific concerns. The good news is, there are a number of changes you can make to the policy

you choose, depending on your particular situations and needs. That is, of course, indeed dependent on

the terms and conditions that your provider has for the critical illness cover.