What is Health and Critical illness insurance and its plans


Critical illness insurance and Its Plans

Critical illness insurance is an insurance policy which you can take out to protect yourself and your family against the impact of being diagnosed with a critical illness. The amount you pay each month or year when you get insurance is known as the premium. The policy may pay out a lump sum based on the level of coverage you selected if you were later diagnosed with a specific critical illness. This amount is known as the sum assured when you set up the policy. You will select a policy term throughout the policy setup process; this is the number of years you wish to be covered.

Critical illness insurance 

Critical illness plans are sometimes called dread disease plans. And they pay out if you are diagnosed with certain severe and critical illnesses. For example 

  1. heart attack 
  2. stroke 
  3. cancer
  4. paralysis 
  5. coma 
  6. angioplasty 
  7. organ transplant   
  8.  kidney failure  
  9. bypass surgery
  10. alzheimer’s

Now this isn’t a full and complete of critical illness list. There is no such thing that differs from plan to plan. So make sure to choose your plan for specific criteria. If you choose your critical illness plan once you’ve met your elimination period you’ll be given a lump sum payout. It could be as little as five thousand or it could be up to several hundred thousand. You can use it as you want. You can use it to pay medical bills if necessary but you could also use it to pay your mortgage if necessary. How you use that payout is entirely up to you. Some businesses will offer critical illness plans as part of their benefits.  If your company does offer one then you may want to take advantage of it. Because very often you’ll find that they are less expensive.

Critical illness insurance plans

Now as always, do your smart research to make sure to find the right plan for your needs. that’s within your budget if you do decide to purchase a critical illness plan of course you’re going to have more coverage than just health insurance alone. Monthly premium which is the amount that you pay monthly to keep your insurance active. The amount can vary widely. Now this is determined by your age, your gender, whether or not you’re a smoker, your location and how much you want the plan payout to be. But usually it could be as little as five thousand or it could be several hundred thousand. So it depends on your plan. If you have a plan that’s going to pay out a larger amount and it’s going to be much more expensive on a monthly basis. So just to give you an idea. For example it could be as little as a couple of dollars per month for a young healthy person. who’s a non-smoker who wants a plan that’s only gonna pay out 5000$ .it could be just a couple of dollars a month. But if you are an older person, who smokes, has health concerns and you want one of those plans that has a much larger payout then it could be a couple of hundred dollars per month.

Health Insurance

Health Insurance and Its Plans

Smaller businesses may offer critical illness plans to entice employees in lieu of health insurance. Remember if your employer has less than 50 full-time employees. They are not obligated to offer you health insurance. However they may offer you some type of critical illness plan to lure employees and give them some type of protection. Even though they’re not opting for the full health insurance coverage.

Health Insurance plans

How to find the best health insurance plans? Starting with monthly premiums monthly premiums are pretty easy to understand. It’s the amount that you have to pay monthly to keep your insurance active. If you don’t pay your monthly premium then you’re not going to have insurance.  But you cannot judge a plan based on its monthly premium alone. Remember a lower monthly premium doesn’t necessarily mean a bad plan. On the flip side, a high monthly premium doesn’t necessarily mean a good plan. Make sure you compare your monthly premium with the plans deductibles co-pays and co- insurance and out of pocket maximum. So make sure you look at the benefits offered and the networks. Because paying less on a monthly basis is great but not if none of your doctors or hospitals are in network. And a plan that offers a whole bunch of extra premiums is also wonderful but if you’re paying more for those fringe benefits and they’re not something you’re really going to use then that plan isn’t going to serve you either.


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