Critical Illness policy is an insurance policy, which pays out
a lump sum upon diagnosis of a serious illness. The term and sum
to be insured are decided at the outset.
If a critical Illness is diagnosed during the specified term
then the sum insured is paid out. If you have not suffered any
serious illness at the end of the term then the plan ceases and
nothing is paid out.
It pays out a single tax-free lump sum on the diagnosis of one
of the illnesses specified in the policy details. The most common
illnesses or diseases that are included in a policy of this sort
are:
- Heart attack
- Stroke
- Cancer
- Kidney or liver failure that leads to a transplant
- Paralysis
- Multiple sclerosis
AIDS is virtually never included in CII cover.
The cost of the premiums will be determined by:
- Your age
- Sex
- Personal and family medical history
- Occupation
- Whether you smoke
- The range of diseases covered by the policy
The benefits of any payout can be used for any purpose, though
the most common are:
- Paying off debts, such as the mortgage.
- Being able to change to a less stressful job without worrying
about the drop in income.
- Adapting the house or car to accommodate a wheelchair.
- Having a good holiday to recuperate.
- Fulfill a lifetime ambition.
The plan can be set up on a single or joint life basis and can
be added to either Level Term or Mortgage Protection Assurance.
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