Understanding critical illness insurance is an important part of preparing for the unexpected. It provides a financial safety net if you become ill with any of a number of serious illnesses.
When it comes to choosing the right policy, there are several things you need to consider, such as what kind of illnesses are covered, how much coverage you need, and which provider offers the best value and customer service.
In this guide, we’ll explain exactly what critical illness cover is, provide a detailed list of 40 illnesses commonly covered by these policies and discuss cancer-specific options for those diagnosed with cancer. Finally, we’ll cover some tips on selecting the right policy for your needs to ensure you have the best coverage possible.
What is Critical Illness Cover?
Critical illness cover, also known as critical illness insurance, is a type of life insurance policy that pays out a lump sum upon diagnosis of a qualifying serious illness. The diseases and conditions covered vary by provider but typically include cancer, heart attack, stroke, and other major illnesses.
The money received from the policy can be used in any way you like to help pay for medical expenses or simply replace lost income due to time off work. It can even be passed on as part of your estate should you die within the term of the policy.
Critical Illness Insurance Claim Process
The critical illness insurance claim process can vary depending on the provider but typically follows a standard process.
- First, you will need to inform your insurer of the diagnosis and provide any necessary medical information and evidence for your claim.
- The insurer will then assess your claim to verify that it meets the conditions of coverage outlined in the policy. This could take anywhere from a few days to several weeks, depending on how many documents they require and whether or not additional information is needed.
- Once your claim has been approved, you will receive a lump sum payment according to the terms of the policy.
- Typically, claims are paid out within two weeks of approval however some insurers may offer faster payouts if you are in urgent need of funds.
40 Critical Illness List
Most insurers provide coverage for at least 40 common illnesses, including:
- Cancer – This includes solid tumors such as breast, prostate, and skin cancer.
- Heart attack – This includes both myocardial infarction and coronary artery bypass graft surgery.
- Stroke – There are two types of strokes: ischaemic (caused by a blocked artery) or hemorrhagic (caused by bleeding).
- Major organ transplant – Includes kidney, heart, liver, lung, pancreas, small bowel, and bone marrow transplants.
- Multiple sclerosis – An autoimmune disease affecting the central nervous system.
- Motor neuron disease – A degenerative neurological condition that affects muscle movement.
- Blindness – Loss of sight in both eyes due to an illness or accident.
- Deafness – Loss of hearing in both ears due to an illness or accident.
- Coma – A prolonged state of unconsciousness.
- Coronary artery bypass graft surgery – A type of heart surgery.
- Kidney failure – When a person’s kidneys can no longer function properly.
- Paralysis – The loss of use or feeling in a part of the body due to an illness or accident.
- HIV infection – When a person’s immune system is compromised by the Human Immunodeficiency Virus.
- Open Chest CABG Surgery – A type of coronary artery bypass graft surgery.
- Benign brain tumor – A tumor that is not cancerous.
- Aorta graft surgery – Surgery to repair or replace the aorta, the largest artery in the body.
- Alzheimer’s disease – A type of dementia that affects memory and cognitive function.
- Bacterial Meningitis – Inflammation of the protective membranes surrounding the brain and spinal cord.
- Aplastic anemia – Anemia caused by a failure of bone marrow to produce enough new blood cells.
- Loss of speech – The permanent loss of ability to speak due to an illness or accident.
- Heart valve replacement – Replacement of one or more heart valves with tissue from another individual or animal.
- Loss of limbs – The permanent loss of the use of a limb due to an illness or accident.
- Parkinson’s Disease – A neurological disorder that affects movement and coordination.
- Major burns – Severe burns caused by fire, chemicals, electricity, or radiation.
- Benign spinal cord tumor – A tumor that is not cancerous in the spinal cord.
- Primary pulmonary hypertension – High blood pressure in the arteries of the lungs due to an underlying condition.
- End-stage renal failure – Permanent kidney failure requiring dialysis or a transplant.
- Loss of independent existence – Permanent inability to perform everyday activities without assistance due to an illness or accident.
- Terminal illness – A disease with no known cure in which death is expected within 24 months or less.
- Progressing incurable dementia – An irreversible decline in cognitive and mental abilities, including memory loss.
- Hartnup disorder – A genetic condition that causes an inability to absorb certain amino acids from food.
- Encephalitis – Inflammation of the brain caused by a virus or other agent.
- Fulminant Hepatitis – Rapidly progressing inflammation of the liver with no known cause.
- Occupationally acquired HIV infection – When HIV is contracted as a result of occupational exposure.
- Creutzfeldt–Jakob disease – A rare and fatal degenerative neurological disorder.
- Benign prostate hyperplasia – An enlarged prostate gland due to noncancerous enlargement of the cells.
- Systemic lupus erythematosus – An autoimmune disorder that can affect multiple organs and systems.
- Motor Neurone Disease with Bulbar onset – When motor neuron disease affects speech and swallowing muscles first.
What is Cancer and Critical Illness Insurance?
Cancer and critical illness insurance is the most popular type of policy that pays out a lump sum to cover costs related to the diagnosis or treatment of cancer and other serious illnesses such as heart attack, stroke, and organ transplant. It typically has an extended period of coverage for cancer-related treatments, meaning you can use the money to help pay for things like chemotherapy, radiation therapy, hospital stays, home care services, and other medical expenses not covered by traditional health insurance plans. Some policies also offer additional financial protection through living benefits such as disability income or long-term care coverage.
Advantages of a Critical Illness Insurance Policy
- Provides financial protection against unexpected medical costs
- Lump sum payment when a qualifying illness is diagnosed
- Covers 40+ critical illnesses such as cancer, heart attack, and stroke
- Some policies provide living benefits such as disability income or long-term care coverage
- Can be used to help pay for treatments not covered by traditional health insurance plans
Conclusion
Having critical illness insurance gives you peace of mind knowing that you’re protected against the financial devastation that a critical illness can cause. With many policies, you’ll be covered for a wide variety of illnesses on a specific list – including 40+ illnesses such as cancer, stroke, heart attack, and more. It’s important to understand the specifics of your policy before signing up so you know what is and isn’t covered. Doing your research ahead of time (you should compare health insurance policies, for example) will ensure that you make an informed decision about the policy that best meets your needs.
