Critical Illness Insurance
Critical illness insurance provides peace of mind in the event of a major illness. Read our guide on critical illness insurance to learn how it can help provide financial security for you and your family.
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Critical Illness Insurance
In today's world, where everything moves so quickly, things can change at the drop of a hat.
That's why preparing for what may be around the corner is crucial.
Critical illness insurance allows you to do just that. It provides a financial safety net should you suffer a severe illness.
This guide provides a comprehensive look at critical illness insurance. We will look at the benefits, as well as how to choose the right policy for you.
What is critical illness insurance?
Critical illness insurance is a type of insurance policy that provides a lump-sum payment if the policyholder is diagnosed with a severe illness or medical condition covered by the policy terms.
These illnesses typically include conditions such as cancer, heart attack, stroke, major organ transplants and other life-threatening diseases. The conditions covered will depend on the insurance company offering the policy and policy type.
Critical illness insurance provides financial protection to the policyholder and their family during a difficult time when they may be facing significant medical expenses or a loss of income because they cannot work.
The policyholder can use the lump-sum payment to cover medical costs, ongoing treatment costs, daily living expenses, or any other financial needs that arise during their illness.
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Use the links below to quickly find information about expat financial advice
- Critical Illness Insurance
- What is critical illness insurance?
- What is covered by critical illness insurance?
- Do critical illness insurance policies provide payouts?
- Why critical illness insurance is important for expats
- Which critical illness cover is best?
- Critical illness insurance vs life insurance policies
- Make sure you are covered with Holborn Assets
- FAQs
What is covered by critical illness insurance?
As the medical landscape evolves, so does the coverage provided by critical illness insurance.
Today, these policies have expanded to cover a wider array of severe health conditions and medical procedures.
This includes Alzheimer’s disease, multiple sclerosis and Parkinson’s disease. It also covers significant medical procedures such as organ transplants, heart attacks, cancer and kidney failure.
Be aware that critical illness protection does not cover all conditions. Some of the typical exclusions are:
- Non-surgical cancer treatment
- Hypertension
- Certain injuries, such as broken bones
Do critical illness insurance policies provide payouts?
It's a common misconception that critical illness insurance providers do not pay out often. However, as an insurance product, critical illness has an exceptionally high payout rate.
The Association of British Insurers (ABI) reported that 91% of critical illness insurance claims in the UK were paid out. Over a 12-month period, that resulted in a total of £1.2 million being paid to policyholders, with the average payout for a claim being around £68,000.
A critical illness insurance policy may not pay if the specific illness is not covered under the policy or if there was a failure to disclose all information to the insurer at the outset. This is why transparency and honesty are crucial when taking out a policy.
Why critical illness insurance is important for expats
Expatriates often face unique challenges when accessing healthcare abroad.
The unfamiliarity with the local healthcare system and potential language barriers can make navigating treatment options more daunting.
Critical illness insurance offers a safety net, ensuring that expats have the financial resources to access the best possible care, regardless of where they are in the world.
In Asia, the critical illness insurance landscape is rapidly evolving to meet the diverse needs of its expanding expatriate and local populations.
In Asia, policies typically cover a wide range of critical conditions prevalent in the region. This includes unique endemic diseases and heart disease, reflecting the region's specific health challenges.
How much is critical illness insurance?
The cost of critical illness insurance varies based on several factors, including:
- Age
- Your current health status
- Your family medical history
- Pre-existing medical conditions
- Your occupation
- The level of critical illness coverage
Whether you pay a reviewable or guaranteed monthly premium can also impact the overall cost of the critical illness policy.
It's essential to assess your financial situation and determine how much coverage you would need to maintain your lifestyle in the event of a diagnosis.
Which critical illness cover is best?
There is a wide variety of critical illness products available. Determining what critical illness cover is best will depend on your individual needs and circumstances.
Some things to think about are:
- Your annual income
- Children or other dependents
- Large outgoings, such as mortgage payments
- Outstanding debts
Critical illness insurance vs life insurance policies
Critical illness and life insurance, sometimes known as life cover, are two similar types of coverage.
Both provide a lump sum benefit to help ease the financial burden. However, the similarities stop here, as they are both designed to cover different things.
Critical illness insurance provides a lump sum payout if you're diagnosed with a covered illness, helping with medical expenses. Meanwhile, a life insurance plan pays out a lump sum to the beneficiaries of the person who took out the policy upon death, providing financial security.
Make sure you are covered with Holborn Assets
Although it's often overlooked, critical illness insurance is a crucial product that provides financial stability, should you ever need it.
But with so many critical illness insurance plans available on the market, knowing which one is right for you can be challenging. To ensure you get the coverage you need, speak to an expert.
Holborn Asia offers independent, professional advice and wealth management solutions.
Our team of financial advisers can help you find the coverage you need to ensure you and your family are protected financially.
We work with some of the leading international insurance companies, allowing us to offer a range of critical illness insurance products to suit your needs.
We are part of the wider Holborn Assets Group, a leading, award-winning financial advisory company with over $2 billion in assets under management (AUM).
Book a free, no-obligation meeting today to learn how we can help you.
Frequently Asked Questions
Yes, having critical illness cover can be invaluable if you have a mortgage. It ensures that you can continue making mortgage payments even if you're unable to work due to a critical illness.
