STARTER GUIDE TO FINANCIAL PLANNING
Crucial Reasons Why An Early Critical Illness Plan Is Superbly Important
Even with the advance healthcare system, it is still a shocking truth that anyone can be diagnosed with cancer. Once diagnosed with cancer, everyone focus would be to go through treatment. Unfortunately, money might be that huge factor in stopping you from getting that treatment that you really need.
With an Early Critical Illness plan, you will have one less worry lingering in your head. This article will shed a light on the importance of owning an Early Critical Illness plan.
What is an Early Critical Illness plan?
To put it simply, upon the diagnosis of an illness that is covered under your policy, you will receive a lump sum of money. That is pretty much it.
However, some might be thinking that a Critical Illness plan is the same thing. You are incorrect on that part.
A Critical Illness plan will only pay out the lump sum of money if the illness is at the major or last stage. Therefore, if you are diagnosed with an early or even intermediate stage of cancer, you will NOT be able to claim that lump sum of money.
An Early Critical Illness plan would pay out that lump sum of money, also known as the Sum Assured upon the diagnosis of illness at an early, intermediate or even major stage.
Therefore, it is important that you do not want to be mistaken for the kind of coverage that you have.
I already have a Shield Plan, why would I need this?
There are tons of insurance policies and it is perfectly normal to be mixed up with what you have. The coverage might be confusing to understand as well.
This part here is to distinguish the difference between a shield plan and a critical illness plan. Therefore let’s discuss what a shield plan is.
A shield plan which is also called private medical insurance is an insurance policy that will reimburse your allowable hospital bills. It does not pay out a lump sum of money.
In certain cases, you do need to fork out your own cash to pay for the bills first. And you then are able to claim that from your respective insurer (pending approval).
Repercussions of falling critically ill
Many people do not think through the repercussion of being diagnosed with a serious illness. Most of us might think that we would just need the money for medical expenses. This is partly true.
When getting discharged from the hospital, you would most likely be told to rest and not allowed to work.
As much as we want to get up on our feet and start working, you sometimes simply just cannot to do so. You might be too weak or mentally you just need a rest from everything.
The inability to work would mean that there might be no income. Nonetheless, you still need money to pay for your daily expenses. Not to forget the debt on your car, home or even your college loan.
With that being said, a shield plan does not pay for those important expenses. Simply due to the fact it will only pay for expenses with regards to you falling ill (medical expenses in hospital).
Not the repercussions of falling ill.
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The use is unlimited
Like mentioned above, upon the diagnosis of an illness that is covered under your policy, you will receive a lump sum of money.
Putting aside the unfortunate fact that you have been diagnosed with an illness, the use of that lump sum of money is purely up to you.
You can pay off your remaining mortgage fully. You can still send your child to college. You can even take the whole year to recover.
That being said, it would only be wise if you most importantly use the money for any follow-up medications and appointments.
If you have settled your healthcare treatment, you may use the money received to anything that you deemed useful.
However, sometimes the repercussion of being diagnosed with an illness might mean that you may find it hard to find a job again. You have to look ahead and foresee the other challenges that might be coming to you.
You might be facing the problem of not having enough for your retirement. With that being said, you might want to diversify the ways to accumulate money for retirement.
The lump sum of money might look huge upon receiving the cheque, but if not plan correctly you might even be worse off.
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Replacing your loved ones’ income.
Without any delay will give you an example of what this means.
Imagine, if you were diagnosed with a severe stage cancer and you were told that you only have a few months to live. Apart from being sad and demotivated, you know that every second matter from now on.
What would be the best scenario is that you are able to spend time with your loved ones on your last few months.
Unfortunately, due to the fact that household does need the money to pay for the daily expenses, your spouse still needs to work to provide the basic necessities.
On top of that, your spouse might need to work extra hard since you are not able to work anymore. Longer hours of working would mean lesser time to be spent with you.
If you had an Early Critical Illness plan, the payout can be used to replace your spouse salary and they can spend time at home with you.
Try to switch roles. And ask yourself this question. Would you rather go to work on the last few months of your spouse life or would you rather spend valuable time with them?
If you rather spend valuable time with your spouse, you would know what to do. Here is another reason why an Early Critical Illness plan is superbly important.
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Survive and heal in peace
You will never how it feels like to be sick until we are the one that is hospitalized. Due to the advance healthcare facilities, you have a good chance of surviving from most illnesses.
You would want to take time to heal but if you do not have the finances to do so, the obligations might be hounding on you to quickly earn an income.
The key is not to only survive only but it is to go back to who you were before all this happens.
Hope that this article was useful. Do share it with your family and friends. Till next time.
Disclaimer:
I am a financial adviser but I am not your financial adviser. Therefore, what is posted on this website, are my opinions and NOT to be taken as financial advice. Information provided might be relevant at this period of time but may be irrelevant due to alterations to rules, regulations or policies. The information provided is true to the best of my knowledge, but there maybe omissions, errors or mistakes.
