Critical illness insurance is a specific type of coverage that pays out a lump sum upon the diagnosis of a severe illness listed in the policy. Despite its importance, there are many misconceptions surrounding critical illness insurance. This article will debunk 10 such myths to provide a clearer understanding of this invaluable coverage.
- Myth 1: It’s Too Expensive: The cost of critical illness insurance varies and can be affordable, especially if you’re young and healthy. The price to pay for not having it during a critical illness can be significantly higher.
- Myth 2: I’m Healthy, I Won’t Need It: Health can change rapidly and unexpectedly. Insurance is about preparing for uncertainties, and critical illness insurance is no exception.
- Myth 3: I Have Health Insurance, So I Don’t Need Critical Illness Coverage: Health insurance covers medical costs, while critical illness insurance provides a lump sum to use as you see fit, including replacing lost income or covering out-of-pocket expenses.
- Myth 4: It Only Covers Rare Diseases: Policies typically cover common critical illnesses like cancer, heart attack, and stroke, along with other severe conditions.
- Myth 5: I Can Only Use the Payout for Medical Expenses: The payout can be used for any purpose. You can pay medical bills, cover daily expenses, or even take a recovery vacation.
- Myth 6: If I Don’t Get Sick, I’ve Wasted My Money: Consider it money well spent on peace of mind. Some policies even offer a return of premium option if you don’t make a claim.
- Myth 7: Only Older People Need It: Younger people can also fall seriously ill. Getting coverage when you’re younger means you’ll likely pay lower premiums.
- Myth 8: I Already Have Life Insurance: Life insurance provides financial support for your dependents after your death. Critical illness insurance supports you financially upon diagnosis of a severe illness.
- Myth 9: It’s Hard to Make a Claim: Insurers provide clear instructions on the claim process. It involves providing medical proof of the illness, which your doctor can help with.
- Myth 10: I Won’t Survive a Critical Illness Anyway: Survival rates for critical illnesses have improved significantly. Insurance can ensure you can focus on recovery without financial worry.
Armed with the truth about critical illness insurance, you can make an informed decision that aligns with your personal circumstances and financial planning goals.
