Critical illness insurance is an insurance policy which will pay out a tax free lump sum in the event one suffers a major illness or health condition.
Life expectancy has increased due to improvements in the diagnosis and treatment of conditions such as heart disease, cancer and stroke. There can be however, a short to severe and prolonged recovery period which may require significant additional expenses.
A concern for some is the need to made up for lost or reduced income if one is unable to work or run their business.
A business owner may have to take time off work to care for an ailing spouse. This can affect the efficient running of a business as well. Critical illness protection may be obtained on the spouse to cover off this scenario.
Most policies will have coverage definitions for heart disease, cancer and stroke. Policies can cover over 20 illnesses and conditions.
In contrast to disability insurance, critical illness insurance is paid even if you are able to return to work following your diagnosis.
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