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What You Need to Know About Critical Illness Insurance

Critical illness insurance is designed to provide financial support if you’re diagnosed with a severe illness. It offers a lump-sum payment that you can use for any purpose, giving you the freedom to manage your expenses and focus on recovery. 

Covered Conditions
Coverage varies by policy, but typically includes major illnesses such as: 

  • Cancer 
  • Heart attack 
  • Stroke 
  • Blindness 
  • Dementia 
  • Multiple sclerosis 
  • Organ transplants 
  • Kidney failure 

It’s essential to review the specific illnesses and conditions covered by your policy. Note that critical illness insurance usually doesn’t cover chronic conditions like fibromyalgia or asthma, pre-existing conditions, or conditions related to alcohol or drug use.  

How the Insurance Works 

  • Selecting a Policy: Choose a policy and coverage amount that suits your needs. 
  • Application: Apply and get approved for coverage. 
  • Premium Payments: Regularly pay your insurance premiums. 
  • Filing a Claim: If diagnosed with a covered illness, file a claim. 
  • Receiving Payment: After claim approval and any applicable waiting period, receive your lump-sum payment. 

Understanding the Survival Period
Critical illness insurance differs from life insurance by providing a living benefit instead of a death benefit. This means you’ll receive a payment while you’re still alive, helping you financially during your illness and recovery. The survival period, which varies from 0 to 90 days depending on your policy and illness, is the time you must survive after your diagnosis to qualify for the benefit. 

Advantages of Critical Illness Insurance
With medical advancements, people are living longer even after serious illnesses. Critical illness insurance provides crucial financial support during this time. You can use the payment for: 

  • Everyday expenses (rent, mortgage, utilities) 
  • Home or vehicle modifications for accessibility 
  • Alternative treatments not covered by health insurance 
  • Support services like childcare or home care 

Factors Influencing Cost
Premiums for critical illness insurance depend on: 

  • Your age and gender 
  • Type and amount of coverage 
  • Personal and family health history 
  • Lifestyle choices, such as smoking 

Determining Your Coverage Needs
When deciding on coverage, consider: 

  • Potential income loss if you’re unable to work 
  • Existing coverage from other sources (disability insurance, savings) 
  • Regular living expenses 
  • Additional healthcare and support costs 

Where to Purchase Coverage
Sterling Brokers offers comprehensive critical illness insurance solutions tailored to meet your specific needs. We have the flexibility to design plans from the ground up ensuring it aligns perfectly with your unique requirements. Our bespoke approach guarantees that you receive the best possible coverage and support. 

Difference Between Critical Illness and Disability Insurance
Critical illness insurance provides a one-time lump sum upon diagnosis of a covered illness, regardless of your employment status. In contrast, disability insurance offers monthly payments if you can’t work due to illness or injury. Critical illness insurance focuses on the diagnosis, while disability insurance depends on your ability to work. 

Learn More with Sterling Brokers
Sterling Brokers provides modern insurance solutions for businesses of all sizes. Our expertise and technology create a seamless experience for our clients. For more information on critical illness insurance plans, contact one of our experts today.