Tips For Choosing The Best Critical Illness Insurance

Tips For Choosing The Best Critical Illness Insurance



Tips For Choosing the​ Best Critical Illness Insurance
With up to​ 20% of​ men and 17% of​ women experiencing a​ critical illness before they reach 65 years of​ age,​ critical illness insurance is​ more important than it​ might seem at​ first glance. Many people believe that critical illness insurance is​ an unnecessary expense,​ but in​ fact,​ statistics like these show that its more likely that the​ average person will suffer a​ critical illness before the​ age of​ 65 than they are to​ die.
Comparing and Understanding Critical Illness Policies
With more than 60 insurance providers offering two hundred different policies,​ choosing the​ one thats right for you​ can be difficult. More than anything else,​ getting good critical illness insurance requires very close inspection of​ your policy. All insurers issue what are called Key Features Documents,​ which allow you​ to​ compare policies fairly easily. Examine these documents closely to​ determine which provide the​ best definitions of​ illnesses covered and value for the​ money.
Perhaps the​ most important aspect of​ this is​ making sure youre aware of​ exactly what your policy does and does not cover. This type of​ error is​ the​ number one reason that critical illness claims get rejected,​ so understanding the​ insurance policy options you​ have is​ vital when it​ comes to​ choosing the​ one that will suit your needs the​ best.
Another related factor thats important to​ consider is​ simply the​ range of​ illnesses that the​ policy covers. Choosing the​ cheapest plan may look good on​ paper,​ but the​ least expensive plan is​ likely to​ offer limited cover that simply doesnt protect you​ against the​ illnesses youre most likely to​ face. However,​ choosing one thats too broad,​ one that covers exotic diseases youre unlikely to​ encounter is​ pointless for most people,​ and selecting a​ policy of​ this kind will simply mean youre paying premiums that are unnecessarily high.
Guaranteed and Reviewable Premiums
Buying a​ policy with a​ guaranteed rather than a​ reviewable premium can help keep your insurance costs down. a​ guaranteed policy means your insurance company promises that theyll never increase the​ size of​ your premium. a​ reviewable policy is​ just thatthe insurance company can periodically review your policy,​ and increase your premiums. if​ your policy is​ a​ short term one,​ choosing a​ reviewable policy can save you​ some money. However,​ while the​ reviewable policy is​ cheaper in​ the​ short term,​ the​ premium cost will be increased over that of​ an equivalent guaranteed policy within seven to​ ten years and within another ten years,​ could be more than twice that of​ the​ guaranteed policy.
Other Factors to​ Consider
Choosing a​ good policy also means looking out for extra advantages such as​ automatic coverage for your children. Not all policies offer this,​ but with childrelated critical illness the​ sixth most common claim,​ this is​ a​ very useful way of​ protecting your children as​ well as​ yourself.
Finally,​ consider taking out life insurance and critical illness cover together,​ rather than simply getting one or​ the​ other. Purchasing the​ two together is​ always more costeffective than buying separate policies,​ and its also much better value to​ buy these types of​ insurance when youre young and healthy,​ and are eligible for less expensive premium rates.




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