Critical Illness Health Insurance is basically what it says on the tin – insurance coverage for specific illnesses forming part of those listed in the insurance policy. Typically these are critical illnesses, but while we’re at it with the different terms for this type of insurance, it’s sometimes also referred to as Critical Illness Cover or Dread Disease Insurance/Cover.
I suppose the importance thereof is straight-forward enough to gauge, but it’s definitely worth looking into exactly why it makes sense to take out a health insurance policy which covers critical illnesses. First we should probably zone in on the reason why anybody would even consider foregoing this very specific type of health insurance, which is primarily that of when they have regular health insurance and haven’t really experienced any situation which validates their continued payment of what are naturally rather hefty premiums. Basically if you’ve never been seriously ill and you subsequently don’t have a reference point for just how expensive medical care can be out-of-pocket, health insurance and even critical care insurance may seem like an unnecessary expense.
This is some seriously flawed thinking however and it perhaps brings to light the critical need of critical care health insurance as an addition to your regular medical insurance.
Beyond “Regular” Health Insurance
So as suggested, there is a list which is comprised out of about 30-36 illnesses which are classified as “critical” and these illnesses aren’t covered by regular health insurance. Additionally, the treatment of these illnesses will weigh very heavily on the pockets of even the wealthiest of people and nobody really has this kind of money just lying around. A critical illness might clean out your life savings and the treatment thereof may not even be sufficient to cure it. In fact, taking a look at the list of critical illnesses one would realise that these are essentially illnesses which require management as opposed to hoping for a cure. These commonly include the likes of blindness, deafness or loss of speech, coma, kidney failure, HIV that’s acquired occupationally or due to a blood transfusion, major cancers (including brain tumour), motor neuron disease, terminal diseases, stroke and many more.
The full and precise list of what are considered to be critical illnesses covered by a critical care health insurance policy are discussed in detail as part of the insurer’s offering who is selling the policy. It does however help to know which of these illnesses would be covered by the specific policy you take out because at the end of the day you’d want to make sure to have the funds available should the unthinkable happen and you find yourself having to deal with any one of those dreaded diseases.
Remember to honour the terms of the policy with regards to paying your premiums and as per any and all other stipulated terms and conditions. You do not want to have to forfeit the lump sum payout out of your own doing.
Otherwise critical health care insurance makes sense as it would help cover the costs for medical care which you probably won’t be able to afford without insurance.