5 Factors That Affect Your Critical Illness Insurance Premium

5 Factors That Affect Your Critical Illness Insurance Premium

Critical illness insurance offers the policyholder a lump sum payout if they are diagnosed with any of the critical illnesses covered by the insurer. Critical illnesses include types of cancer, end-stage kidney failure, multiple sclerosis, heart valve surgery, major organ transplant, stroke, coma, and paralysis, among others.

Critical illnesses can affect anyone at any age – it is a misconception that the risk of these diseases only increases with age. As such, it makes to sense to invest in a critical illness insurance policy to supplement the coverage you already enjoy from health insurance. The payout you receive from critical illness insurance can be used as you please. You may utilize it to fill any gaps in your health insurance and as income replacement. Remember that if you are impacted by a critical illness, you will probably have to stop working while you receive treatment. So, it is worth paying the premium for this form of coverage.

So, what are the factors that impact your critical illness insurance premium?

Let’s find out. 

  • Pre-existing diseases

The presence of any pre-existing illnesses can impact the premium of your critical illness insurance. Sometimes, insurers do not cover any dread diseases arising from pre-existing conditions. If they do, the premium will be increased in accordance with the severity of the condition. Never hide any pre-existing illnesses from your insurer as this may result in your claim getting rejected. 

  • Age of the policyholder

The age of the insured individual has an impact on the cost of the policy. The older you are, the more you are likely to pay for critical illness insurance. So, it would be definitely advisable to buy coverage as soon as possible For instance, buying coverage in your 20s would be much more affordable than buying it in your 40s. 

  • Habits

A policyholder who smokes regularly will definitely end up paying higher premiums on their critical illness insurance than someone who does not have the same habit. This is because smoking would put the person at a higher risk of developing certain diseases. 

  • Family medical history

Your family’s medical history too can impact the rate of premium you get charged for critical illness coverage. This is because certain diseases, such as stroke and cancer, tend to run in families. Some insurance companies may not cover you if you have a family history of these conditions. The ones that do will possibly charge you a higher premium. 

  • Policy coverage

The more inclusions in your policy, the higher your premium will be. This is true for almost any form of insurance coverage including critical illness insurance. When comparing various options of plans, a critical illness plan that covers more diseases or has a wider definition for certain diseases will most likely charge you a costlier premium. Still, it is worth paying for more coverage as the premium cost will be minor compared to the coverage you receive. 

We hope that this article has helped improve your understanding of critical illness insurance. Make sure to get coverage immediately to stay protected. 

Take care.