Very similar to the options for life insurance, there are a large variety of coverage options to fit your specific needs and budget:
Term coverage
Just like the name implies, this provides temporary coverage that lasts for a specified period of time. Some of the most common terms are 10 years, 20 years, or up to age 75. Term coverage provides the protection you need at an affordable premium. Like life insurance, term critical illness is usually where most people start, especially if you have a young family that relies on your income, along with a mortgage or other debts. The term you select will lock in your premiums for that set period of time, and will renew for another term, albeit at a higher price. You also have the ability to convert all or a part of your term coverage to a longer term or a permanent option as your needs change to keep your premiums more affordable.
Permanent coverage
This type of policy provides protection from the time it becomes active, until you make a claim. Your premiums will stay the same throughout the life of the policy, or you can choose a shorter time period (15 or 20 years for example) after which you will no longer pay premiums, but your policy will stay active. Although term is more affordable to start, it will increase in price at every renewal, while permanent coverage has higher initial premiums, but they will never increase. As your needs evolve, converting your term policy to permanent coverage may be the best fit for your needs.
What conditions are covered?
Critical illness insurance policies can provide a vast array of coverage over different conditions – including heart attack, stroke and life-threatening cancer. It is always best to understand what conditions will be covered for your specific policy. It will always be included in your policy and it can never change – even if the insurance companies change their coverages in the future. Our coverage offerings provide protection for upwards of 26 different critical conditions, so you can rest assured, you are well protected.
What are the requirements for payment?
If you are diagnosed with one of the covered illnesses as defined by your policy, you can submit a claim to your insurance company. For many of the conditions, as soon as your claim is approved, you will receive the insurance cash payment. Certain conditions have a waiting period, which means that if you are alive after the required time passes, you will receive your benefit.
What happens if I never have to make a claim?
There are a number of optional “riders” that can be added to your policy to provide you with additional customization to your coverage. One option you might include is a return-of-premium rider. This means that if you don’t make a claim on your policy after as early as 10 years, you can choose if you would like to get refunded all of the premiums you have paid to this point and allow your policy to expire. Some of the other riders include a return-of-premium at death where you can get all of your premiums back if you die without making a claim on your policy, coverage for a second event, where you would receive an additional payout if you are diagnosed with certain critical illnesses after your initial claim, and many other riders depending on your needs.
