Critical Illness Insurance
Critical illness insurance is an insurance product that is designed to provide a lump sum cash payment in the event a policyholder is diagnosed with a critical illnesses as defined within the policy document.
The contract terms within the policy document contain specific rules that define when a diagnosis of a critical illness is considered valid. It may state that the diagnosis need be made by a physician who specialises in that illness or condition, or it may name specific tests that confirm the diagnosis.
Conditions covered
The schedule of insured illnesses varies between insurance provider and has evolved from providing cover for the primary conditions of heart attack, cancer, stroke and coronary artery by-pass surgery to now providing cover for an extensive list of illnesses, examples of which may include:
- Alzheimer's disease
- blindness
- deafness
- kidney failure
- a major organ transplant
- multiple sclerosis
- HIV/AIDS contracted by blood transfusion or during an operation
- Parkinson's disease
- paralysis of limb
- terminal illness
Need for Critical Illness cover
The intention of a Critical Illness Insurance policy is to provide financial protection to individuals following the diagnosis or treatment of an illness deemed critical.
The payment received could be used to:
- pay for the costs of care and treatment
- pay for recuperation aids
- pay off debts
- compensate for any lost income due to a decreasing ability to earn
- fund a change in lifestyle
The actual illnesses covered by some policies can be significant and a detailed evaluation of the critical illnesses covered by any particular policy needs to be undertaken when comparing product offerings from various providers.
Critical illness insurance may be purchased by individuals either on a stand alone basis or in conjunction with a life insurance or term assurance policy. Alternatively some employers may also take out critical illness insurance on behalf of their employees on a group basis.
Assessing Risk
The underwriting process for critical illness insurance is similar to that of life insurance in that it takes into account factors such as age, gender, smoking status, past medical history, family history, alcohol consumption, and body mass index. In the case of critical illness however, there is an increased emphasis on family history, smoking and bodymass index are considered risk factors that can demonstrate a marked increase risk with respect to critical illness cover.
After completion of the application process an application may be accepted at standard rates, or on the basis of an extra charge, or subject to additional exclusions of particular illnesses.
At Robertson Low our team of experienced brokers take time to understand our Private Clients specific requirements providing them with competitive solutions to ensure they get exactly what they're looking for at the best possible price.
Further more we are there after the point of sale to advise you on changes or alterations you may require during the year or to provide you with advice and support in the event of a claim.
