Insurances

Critical Illness insurance provides a lump sum payment should one be diagnosed with a harsh illness that is listed in the terms of the policy.

It pays out a predetermined lump sum, which can be used for any purpose.Whilst it is primarily there to provide that extra financial support a critical illness may require, the payout can even be used to sponsor a memorable family vacation to keep spirits up.

Typically, however, Critical Illness Coverage is used to offset the costs of:

• Reduced income due to taking a leave of absence or reduction in working hours. Regular price of daily living does not change – the mortgage, grocery and utility bills still need to be paid.
• Increased family costs including hiring a caregiver to take children to their after-school activities or help with homework while both parents are occupied with the sick family member.
• Extra illness-related expenses like transportation to and from the hospital or treatment facilities, or accommodation expenses to be closer to the hospital on weekends.
• The cost of flying in family members for extra support.

It is important to note that Critical Illness Coverage and disability income insurance are not interchangeable, as each serves a different purpose.

Potentially, a diagnosis of a critical illness may still leave one eligible to work, according to the definition of one’s disability insurance or work responsibilities. Yet the illness (or spouse’s or child’s illness) could consume so much of one’s time and income that making ends meet becomes a challenge.

Critical Illness Coverage policies are available to children as well as adults. For example, a child could be diagnosed with meningitis and hospitalized for several weeks. In this case, a parent might have to take unpaid leave from their job, or leave it entirely in order to care for their child. In this instance, it is likely that disability insurance and Bituach Leumi wouldn’t cover much for this, if at all. However, a child’s Critical Illness Coverage would.

Critical Illness Coverage premiums are variable-rate premiums. They are calculated according to age and are subject to a health declaration. Critical Illness Coverage is a term policy that usually expires at aged 75.

The sums insured each family member may wish to cover, will depend on the family’s needs, income levels and potential risk.

Each insurance company differs slightly in how their policies are structured and what exactly is covered. It is wise to have a free, no-obligation consultation with someone from our team who can help guide you to the most appropriate Critical Illness Coverage plan that meets your needs.