How to Compare Critical Illness Insurance

Critical illness insurance is a type of policy designed to provide you with a lump sum payment if you are diagnosed with a potentially deadly illness. This type of insurance is a separate policy that you can get besides health insurance. If you are diagnosed with some type of critical illness, your health insurance policy may not provide you with all of the financial benefits that you need. This type of policy can help fill in the financial gaps.

Instructions

• 1

  Evaluate the reputation of the company that provides the policy. Many different insurance providers offer this type of insurance coverage. You want to ensure that you are working with a reputable insurance company that has a good history of paying claims. You can find out about any potential clients by researching the Better Business Bureau and other similar websites.

• 2

  Look at the list of critical illnesses that each insurance policy covers. Each insurance policy will be different when it comes to which types of critical illnesses it provides benefits for. Some common illnesses that are covered include heart attack, stroke, kidney failure, paraplegia and blindness. Since you do not know what type of illness you could come down with in the future, you want to choose a policy that has a wide array of illnesses that are covered.

• 3

  Determine how much you would be paid from your insurance policy if you were to come down with a critical illness. Most of these policies pay out in a lump sum benefit. For example, if you are diagnosed with lung cancer, you might get a one-time payment of $20,000. You are free to use the money in any way that you wish. When comparing policies, the one with the higher payout will be more attractive.

• 4

  Compare the premiums of each policy for your particular age group. Each insurance policy will have different premium amount in relation to your age level. As you get older, your premium will increase. Make sure you are comparing apples to apples when looking at the various policies in the market. You should also find out what payment options are available. Some insurance companies will require an annual premium payment while others will allow you to pay by the month.