Critical illness insurance is a type of insurance policy that provides a tax-free lump sum payout if you are diagnosed with a specified serious or life-threatening illness, such as a heart attack or certain types of cancer. It is not intended to replace your income but to provide financial support to cover household expenses and anticipated costs associated with your illness.
The coverage you need depends on your financial situation and how much you believe you will need to cover expenses. Not all conditions are covered by critical illness insurance, as different insurance providers have different lists of specified conditions, exclusions, and limitations. Most policies also have a survival period of 28 days from the start of the policy before a payout is made.
The cost of critical illness insurance depends on factors such as age, health, and the coverage you choose. It is important to review your coverage regularly, as your needs may change over time due to life events or increased responsibilities. Some policies allow you to increase your coverage, while others may require you to take out a separate policy.
There are also options for combined life and critical illness insurance, which pays out if you are diagnosed with a critical illness or pass away, whichever happens first. Other options for financial protection include income protection insurance, which pays out an income if you are unable to work due to illness or injury, and life insurance, which pays out a tax-free lump sum or income upon your death.
Navigating critical illness insurance can be complex, but our qualified advisers at PIWA are here to guide you through the process and help you find the best policy to meet your needs.