Critical Illness Insurance

Critical Illness insurance is a health insurance with lump sum, Tax free, living benefit in event of occurrence of illnesses; covered in the contract. Usually, there are 4, 25 or 28 critical illnesses covered along with some juvenile critical illness. The benefit can be divided into partial or full benefit coverage. Read the definitions of the covered conditions written in the policy contract. For coronary angioplasty, ductile carcinoma in situ (DCIS) of breast, prostate cancer stage A (T1A or T1B), stage A1 malignant melanoma, the benefit can be up to 10% from the total coverage purchased. There may be a 30 days survival period, before the claim may become payable. Sometimes because of pre existed condition, the coverage is not available. There are various riders available to the owner of the policy like return of Premium upon death or on expiry of the period of coverage. Refer to the conditions of the policy as conditions are different according to the product purchased. There is a big difference between disability insurance and the critical illness insurance. Disability insurance is an income replacement in case of loss of income due to injury or sickness and it is a monthly benefit. So “earning” is the condition. In CI work or earning is not important. So many detailed conditions may be attached to the critical illness policy and a Life insurance broker can provide all the information.