Can I get Term Insurance with a Critical Illness?

Life insurance is an excellent way to protect your family if something happens to you. Many people buy life insurance because they have a dependable income and are financially prepared to take care of themselves and their loved ones. If a loved one passes away, then the survivor will receive the money from the premium payments made by the plan member. But what if someone suffers from a critical illness? Will they be eligible for term insurance? AreA critical illness usually refers to any sort of condition that is expected to cause death (otherwise known as terminal illness) or a substantial loss of function over 6 months.

Insurance plans are designed to provide financial assistance and cover the expenses involved in your care from the moment you fall ill and cannot work. However, this won’t be possible, if you have already been diagnosed with an incurable illness. Life insurance plans provide financial support to individuals in case they are unable to work due to an illness or accident. The type of life insurance you purchase depends on what’s best for you, but the amount of coverage and length of time it will last is determined by your health and medical history.

In this Achal Chaurasia blog, we will discuss all you need to know before getting life insurance while having a critical illness.

Can you buy Life Insurance while suffering from Critical Illness?

As we have already established, life insurance policies are a means of making sure that your loved ones don’t have to worry about a sudden financial loss if you die or are incapacitated in some way. Now, the question arises whether someone with a pre-existing critical illness can be eligible for a life insurance policy or not. In fact, it is not uncommon for insurers to refuse coverage to people with pre-existing conditions such as cancer or heart disease. But there are times when it does actually work in favour of the applicant because the risk involved is lower compared to the rest of the population. 

In fact, some insurers will allow it if you satisfy their accessibility criteria. But, if you are thinking about buying a policy for someone with a disability, then you have to understand that your options are limited.

Things To Keep In Mind 

Buying a life insurance policy for yourself or your family when you have a critical illness can be quite a daunting task. And, it doesn’t help if you don’t know how much to expect to pay in premiums and other associated fees. Before you decide on whether or not to buy life insurance, take a look at the following points and make sure that you’re ready for what may come if you do purchase one!

Disclose Your Illness

The specific details of a policy may be different for each illness, but the general rule for all critical illnesses is that you must disclose the fact that you suffer from any of these conditions. The reason behind this is to keep the insurer informed about the risks involved in providing you with life insurance coverage. And, since every company has its own rules when it comes to assessing the risk, what might work for one company might not work for another. So, while these may come in handy, they are not hard and fast rules universally applicable to all insurers.

There are several types of critical illness insurance available, some of them being designed for employees in particular organisations. However, wherever you buy your policy from, you should always read the specific conditions carefully and make sure that you understand how your condition is treated by the insurer. Being clear about your needs and requirements before you sign up for a policy will definitely help to avoid any confusion in the future. Usually, insurers will ask about some specific information that might be connected to your critical illness which includes:

  • When was your illness diagnosed?
  • How critical is your condition?
  • Are you receiving any special treatments for your illness? 

The Premium Rates

Overall, insurance companies charge a premium in the range of 30% to 40% more if you have been diagnosed with a critical illness. To maximise your policy without increasing the costs too much, strike a balance between getting adequate protection. It ensures that you choose a policy that has fewer exclusions. Never buy more coverage than you can afford to pay for.

But, you need to keep in mind that the above-mentioned rates might not be applicable to all insurers, so do check before buying any policy. Some insurers may charge a bit more for critical illness cover, and it’s best to research the matter before buying any life insurance policy.

Final Thoughts

We hope that in this Achal Chaurasia news you’ve got some useful insights for getting life insurance. A critical illness policy is a great way to safeguard your future when you have a high-risk condition. If you’re looking for either the peace of mind that comes from having a plan in place or the chance to supplement your income if you fall ill before retirement, buying a critical illness policy can be a good move. As always, it’s worth making sure that you do your homework and understand what each policy offers before taking out cover. That way, you can make sure that you find a plan that is right for your circumstances and meets your needs now and also in the future.

Also, read- Is Travel Insurance A Must For National And International Trips?


Author- Achal Chaurasia

A young businessman who has been in the line of entrepreneurship for quite a few years. He is an active learner and loves to know more about new technological developments CG up as well as how they can be put to great use to yield better results for the society.

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