A Critical Illness policy is designed to provide a lump sum cash benefit to help cover the out-of-pocket expenses associated with a Critical Illness diagnosis. The policy ‘triggers’ vary widely between products being offered.
Many brokers and consultants tout this product to be the silver bullet in Critical Illness diagnosis. In reality, for most of these policies, it is a silver BB. The cost for most of these policies limit the amount of protection most employees can afford.
In addition, many of these policies either do not provide benefits for reoccurrence of the same condition or limit it to 25% or 50% of the original face amount. And once the reoccurrence takes place, the policyholder now has no coverage and is now uninsurable. So policy choice is of utmost importance.
Just as with other benefit choices, we have designed an affordable policy, which provides 15 to 20 benefit triggers. Most will pay 100% of the full benefit twice. And these policy designs will pay the benefits for every trigger covered by the policy.