Critical Illness And Disability Insurance

We are all humans. Hence, illness is a part of life. Whether small illnesses like fever or cough or large illnesses like cancer. At some point, everyone deals with some sort of illness. The problem is not with illness; rather, the expenses are a big deal. This is where Critical Illness and Disability insurance help. 

Most people don’t realize that normal insurance plans don’t provide the amount for critical insurance. This is bad for those who face such a situation. Dealing with critical illness leaves you in a bad way without insurence . Hence, it is necessary that you get insure very soon. This article explains the advantages and disadvantages of critical illness and disability insurance.  

Advantages Of Critical Illness And Disability Insurance

Critical illness insurance has many advantages, especially for unexpected situations; here are some of them. 

You get a tax-free lump sum. 

The best part of disability insurance is that it provides you with a tax-free lump sum when you are diagnosed with a critical illness. This is great when you pay for the day-to-day costs, such as mortgage rates or hospital expenses. 

The problem with critical illness is that it comes suddenly. This means you don’t know how to deal with your expenses. Expenses for critical insurance are high. This leaves you with a lot of cash going out. This is not the case with good insurance. When you pay for personal insurance timely, these expenses are not an issue. 

Critical Insurance Covers Specific Diseases 

Normal health insurance covers small diseases such as fever, flu and accidents. These diseases don’t require much money for treatment. However, critical insurance requires larger payments. For example, you need regular chemotherapy sessions if you are diagnosed with cancer. These sessions are expensive compared with regular treatment.

Also Read: The Wonders Disability And Critical Illness Insurance Do For You

However, this is where people misunderstand critical insurance and health insurance. This is where your insurance broker near me helps. Critical illness covers 26 long-term illnesses, such as Cancer, heart attack, bypass and stroke. 

Hence, critical illness plans to keep in mind the severity of the illness and the costs of recovery. This is not the case with normal health insurance, which pays only for when you are hospitalized. 

You Can Continue With Your Family Expenses

You can use your critical insurance policy funds in any way you like. Critical illness insurance is not for medical funds only.  The sum you receive can also be used for your children’s education. This way, you don’t need to worry about financial crises. Because critical insurance money helps fulfill your day-to-day needs along with your recovery. This is a great feature. However, the same is not the case with a health insurance policy. 

Disadvantages Of Critical Insurance 

With all things good, there are always bad sides to them. The same is the case with critical insurance. There are many disadvantages of critical insurance. I elaborate on these below. 

Doesn’t Cover Inherent Conditions 

The biggest problem with critical insurance is that it doesn’t cover the already present medical conditions of the patient. This is where clients misunderstand critical illness. Critical illness insurance is only available for sudden illnesses which the patient faces. Hence its the responsibility of sole proprietors to inform clients of the differences in policies. Therefore, it’s good to consult your insurance employer before deciding. 

Doesn’t Cover All Critical Illnesses  

Another disadvantage of a critical illness is that it doesn’t cover every critical illness. It depends on the policy of your insurance broker.  This is bad because you don’t get coverage despite eligibility.

Also Read: What Is Critical Illness Insurance, And Why Do you need it?

Eligibility also depends on the doctor’s diagnosis of the disease and its definition in the insurance policy. This means you are not ill, despite knowing you are ill. This means you don’t qualify for coverage if the policy is not in line with the medical report.

The best way for this is to contact your insurance broker and read the terms and conditions of your insurance policy well before your decision 

You Only Receive A Payout Once 

I mean that you don’t get paid every time you get critically ill. The sum of money you receive is once only. After this, you need a new insurance policy for coverage. This is a bad thing. Hence, consultation with your insurance broker is the best option for this. Or, a health  insurance policy is a better option because it covers you throughout 


Critical illness insurance is a great feature of insurance companies; it covers you from sudden events and helps you make timely decisions. It saves you from financial burden and bankruptcy. However, it’s not always good; it comes with its issues and disadvantages. 

Hence, it’s a tough decision. Contact many insurance companies when looking for a policy and make a wise decision. Read policies before your approval and choose the best policy for you 

Evaluate yourself, and consider whether you need critical insurance. This depends on your health and priorities. If you are fit, go for health insurance rather than critical insurance. The final decision is your,  but this is my take on the issue.