Top 15 Ways to Save Money on Critical Illness Insurance

 

 

While life insurance pays out to your beneficiaries if you die, critical illness insurance pays out if you are diagnosed with one of the major illnesses listed in the policy. Because death is not required for the benefit to be paid, it is referred to as a "living benefit."

Some critical illness policies cover three or four conditions, while others cover up to 30. The conditions covered differ between carriers and policies. Some of the conditions covered by critical illness insurance include, but are not limited to: stroke, cancer, severe burns, heart attack, major organ failure, Alzheimer's disease, aortic surgery, loss of limbs, aplastic anaemia, bacterial meningitis, benign brain tumour, blindness, coma, coronary artery bypass surgery, paralysis, deafness, heart valve replacement, loss of speech, kidney failure, motor neuron disease, loss of independent existence, major organ failure.

Here are some strategies for lowering your critical illness insurance premium:

 

1.      Choose the best policy for your risk factors: The more conditions covered, in most cases, the more expensive the policy. If you have a family history of cancer, for example, you may be better served by a policy that covers cancer, heart attack, and stroke rather than a policy that covers 15 or more illnesses, the majority of which may be low risk for you.

2.      Some policies will not cover certain conditions, such as vision loss. Weigh the benefits and drawbacks of exclusions carefully, but keep in mind that the lower the risk you present to an underwriter, the lower your premium.

3.      Did you know that depending on when you apply for a policy, insurers will round your age up or down? If your birthday is near the end of the year, purchase your policy during the first six months of the year to benefit from age rounding.

4.      Some policies include additional benefits and riders, such as a premium waiver rider or a child illness rider. Remove any riders that do not apply to you in order to save money on your premium.

5.      Do you have mortgage insurance that covers critical illness? Consult with a broker to determine whether dropping your mortgage insurance makes sense for you. You may have adequate mortgage risk coverage if you also have individual policies and work-related policies. If there is enough overlap, you can combine your policies to pay less while still having the coverage you require. Caution! Never cancel an insurance policy without first determining whether you have adequate coverage.

6.      Monthly payments cost your insurer both time and money to process. If you can make an annual lump sum payment, they will reward you with lower premiums.

7.      Some policies can be backdated for a fee, giving you the opportunity to lock in a better rate and age bracket. This will cost you more money in the beginning, but it will save you money in the long run, especially if you have a long-term policy.

8.      Select between term and permanent coverage. Permanent is initially more expensive, but it is very affordable if purchased when you are young and in good health. Every year, the cost of term insurance increases. Choose carefully if you want long-term security. You don't want your term policy to expire at an age when renewing would be prohibitively expensive.

9.      Critical illness insurance may be included in your employer's benefit package. If your employer's level of coverage makes sense for you, that's fantastic! You have the necessary coverage.

10.  You can pay more for a simplified or guaranteed issue critical illness policy that allows you to skip the medical exam. A fully underwritten policy with a medical exam is less expensive. If you are in good health, disregard the no-medical policy and schedule a visit with a doctor or nurse.

11.  Wrap up warm! If you are looking for multiple policies, such as disability and life insurance in addition to critical illness insurance, your insurer may offer a bundle discount. Don't be afraid to inquire if this is the case.

12.  Do you want a money-back guarantee? Some policies include or allow you to purchase a return of premium rider, which provides a full or partial refund of unused premiums. There is usually a fee for this, but the extra money can more than offset a premium return years later.

13.  Consider purchasing a life insurance policy with a critical illness fund advancement. This may be less expensive than purchasing two separate policies, but keep in mind that an advancement reduces your life insurance benefit.

14.  Smokers always pay more, sometimes twice as much as nonsmokers. This is yet another reason to kick the bad habit!

15.  Contact a broker. Brokers, unlike agents who work for a single company or banks that only sell their own brand of policies, have access to all products on the market and will compare them for you. Brokers are similar to matchmakers. They look over all of your options and match you with the best one for your requirements. Some brokers even receive discounts that are not available to the general public in order to get you the best rate.

Age is a major factor in the development of critical illnesses, and no one can avoid it. As a result, critical illness insurance is just as essential as life insurance. We hope these suggestions encourage you to contact a broker and save money on this type of policy. Contact a broker today to get the protection you require.

Author: RabnawazToor