Critical illness plans protect you and your loved ones by providing a lump sum benefit when you are diagnosed with a serious illness. This lump sum is normally used to help cover the costs of any ongoing medical treatment, lifestyle adjustments (home renovations, medical support equipment) that may be needed because of the illness, or to lessen the financial impact due to lost income because of the diagnosis.
The premiums of a Critical Illness plan are calculated using a number of factors including the policyholder's state of health at the start of the plan, their age, total sum insured, and whether they smoke or not. It is important to note that a Critical Illness plan will not offer coverage for any pre-existing conditions that are present prior to the plan's commencement.
Normally, regardless of a policyholder's general state of health, a critical illness policy can be renewed every year until the normal age of retirement as long as the policyholder has paid their premiums. In many cases when renewing the plan, a policyholder can apply to increase the level of cover, giving you an extra level of control over the plan. Many critical illness plans will give you the option of adding Total and Permanent Disablement cover to protect you in the event of a serious injury.