A common misconception about critical illness insurance for people who are not very familiar with insurance is that its coverage is limited to certain cancers. However, in reality, many critical illness policies cover many illnesses ranging from malignant tumors, acute myocardial infarction, severe facial burns, to severe Alzheimer’s disease and the need for major organ transplants. While you may have never thought this could happen to you or a family member, we should not rule out the possibility and planning ahead is not a bad thing and should be done as early as possible.

What often follows with a major illness is the expense of money. One of the major advantages of critical illness insurance is that once diagnosed, it can pay out a larger amount at once, either for household expenses or medical expenses, which you can use according to your actual needs.

In addition to the difference in coverage, the key difference between critical illness insurance and medical insurance is the way you are paid: critical illness insurance is a payout type, where you will receive a lump sum when you are diagnosed with a specified illness, while medical insurance is a post facto insurance, where the amount of compensation depends on the amount of medical expenses spent and there is a cap on compensation. In contrast, critical illness insurance can provide support for your medical expenses and stabilize your financial situation in the first place when you are unable to face the huge medical expenses.

Imagine an illness striking you or a family member. Many people think this is an unfounded worry, but illness doesn’t allow you to be prepared when it happens. Personal financial security is certainly the number one priority when illness strikes and deserves everyone’s time and careful consideration.