What is Critical Illness Insurance? Why do you need it and how does it work?

When it comes to financial planning, it's essential to consider all possibilities, including the event of a critical illness. This is where critical illness insurance comes in, and it's a type of insurance that provides a lump-sum payment to the policyholder if they're diagnosed with a critical illness. In this blog, we'll discuss what critical illness insurance is, why you need it, and how it works.
 

What is Critical Illness Insurance?

Critical illness insurance is a type of insurance that provides coverage for the policyholder if they're diagnosed with a critical illness. This coverage typically includes a lump-sum payment that can be used to cover medical expenses, debts, or other financial obligations. The illnesses covered by critical illness insurance vary by policy, but they typically include cancer, heart attack, stroke, and organ transplants.

Why do you need Critical Illness Insurance?

No one likes to think about the possibility of being diagnosed with a critical illness, but it's a reality that we all must face. The cost of treating a critical illness can be astronomical, and it can quickly drain your savings or put you in debt. Critical illness insurance is an excellent way to protect yourself and your family from the financial burden of a critical illness.

How does Critical Illness Insurance work?

When you purchase critical illness insurance, you pay a monthly premium to the insurance company. If you're diagnosed with a critical illness that's covered by your policy, you'll receive a lump-sum payment. The amount of the payment depends on the policy you choose and the severity of your illness. Once you receive the payment, you can use it for anything you like, including medical bills, mortgage payments, or any other financial obligations.

Critical illness insurance is an essential aspect of financial planning. It provides a safety net for you and your family in case of a critical illness, and it can help you avoid financial hardship during a challenging time. At Westgroup Financial Management Inc., we understand the importance of critical illness insurance and offer a range of policies that can fit your unique needs. Contact us today to learn more about how we can help you plan for the future. To learn more about the services we offer, please click here. To contact us, please click here or call us at (604) 588-9688.