Most people are curious about the idea of collecting insurance without having to pass away. Lets look at a type of insurance that is relatively new – Critical Illness. This coverage is designed to pays out after the diagnosis of a dread disease allowing you to live with a life-altering health issue. The following summarizes the key points:
Dread Disease
- Comprehensive coverage covering more than 20 illnesses
- Includes the most common: cancer, heart attack and stroke
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Payments
- Insurance is usually paid out within 30 days following diagnosis of a dread disease
- Money is tax-free and can be used for any purpose you wish
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Typical Uses of Proceeds
- Income replacement
- Seek private medical services in foreign countries (avoid lengthy delays)
- Modification to the home to deal with disease
- Reduce debt
- Older policy holders use the proceeds to fund long-term care
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Key Components
- Policies to age 75 are offered where premiums are level, the insurance company cannot increase your premiums
- A product rider can be added to the policy called a "return of premium" where if you do not have a claim, your premiums are returned in full at the end of the term of the policy
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