Time To Look At Critical Illnesses Insurance

Some people are under the impression that medical insurance and critical illnesses insurance are the same.

Critical illnesses insurance are variously called "Living Assurance", "Critical Illness Insurance", "Dread Disease Insurance". In the case of NTUC INCOME, it has "LIVING POLICY", LIMITED PREMIUM LIVING POLICY and LIVING ENDOWMENT POLICY .

A typical plan pays the full sum assured in a lump sum upon death, upon the diagnosis of a specified illness or upon suffering from total and permanent disability.

The illnesses usually include heart attack, most cancer, stroke, kidney failure and many more.

This money can be used to meet your daily expenses, to provide funds for medical treatment or for other uses.

The diagnosis must be made by sa registered medical practitioner and supported by clinical, radiological, histological and laboratory evidence, as appropriate.

Once the diagnosis is confirmed and the claim is admitted, the policy money becomes immediately payable and the policy terminates.

If no claim for major illnesses is made, the policy continues to provide normal life insurance cover.

As may be expected, life insurance companies apply different underwriting guidelines for this type policy. For example, the family medical history, would be taken into consideration as a significant underwriting factor. It is important that you refer to the contract document of the company that you purchase.

A benefit is usually not payable in certain situatiuon. For example, a heart or kidney failure which existed at the time the policy was taken out. Commonly known as pre-existing condition.

You can buy it as part of a policy which provides whole life insurance protection, or it can be attached as a supplementary benefit to a basic plan such as a whole life or endowment policy.

If you buy as a supplementary benefit to a basic plan, in the event of a claim under the supplementary contract, the main or basic plan can still continue in full force as long as you continue to pay premium.