Why Should You Seek a Critical Illness Insurance?
Critical illnesses can change your life without any prior cue. For such instances which might not just affect you but also your family and everyone around you, critical illness insurance provides you a safe slack to cut out a lumpsum amount and protect your dependants. Heart-attack, stroke, paralysis, cancer, kidney failure, coma, loss of speech, limbs or sight are some of the major illnesses that are covered by critical illness insurance. Also any major organ transplant, such as heart, liver or pancreas can also be covered in your insurance policy. Following are a few features of critical illness insurance:
At its maturity,i.e., at the time of any critical illness, the cover is provided in a lumpsum amount which can be used in more than just paying off medical bills. As many other expenses can be due such as mortgage payments, tuition fees, etc. it is important for such lumpsum to be availed.
In case where the person does not incur any critical illness, the premiums paid till then shall be reimbursed at the time of demise. The nominee shall collect the amount on the event of the applicant’s death. In case of a period specific insurance, if the person dies within the period, all premiums paid shall be returned. Needless to say, the longer the tenure of your policy, the lower will be your periodical premium payable amount.
One of the key feature of critical illness insurance is that it offers you an increment in your maturity benefit at periodical breaks. For the initial ten years, your lumpsum benefit amount will be increased every alternative years. This shall be a 20% increase for five times within ten years and can prove to be incrementally beneficial.
Minimum Survival Period
Critical Illness Insurance comes with a condition that, the minimum survival period should be completed before claiming the lumpsum benefit. Usually it is of 60 days,i.e., you must survive for at least 60 days after the diagnosis of such critical illness as may be covered, to claim the benefit accrued