Critical Illness

Critical illness insurance is a type of insurance that provides a tax-free lump sum payment if you’re diagnosed with a serious illness covered by the policy. It’s designed to help you financially survive while you focus on recovery.

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Common Illnesses Covered:
   •    Cancer (life-threatening types)
   •    Heart attack
   •    Stroke
   •    Major organ transplant
   •    Kidney failure
   •    Multiple sclerosis
   •    Paralysis
   •    Alzheimer’s disease (advanced stages)

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How It Works:
   •    You buy a policy with a set coverage amount (e.g., $50,000 or $100,000).

   •    Critical Illness coverage need is usually calculated based on 1x or 2x of your annual income.

   •    If diagnosed with a covered illness and you survive a waiting period (usually 30 days), you receive the full benefit in cash.
   •    You can use the money however you want—treatment, travel, debt repayment, or to replace lost income.

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Why It’s Important:

Even with health insurance, a major illness can disrupt your finances. Critical illness insurance provides a safety net, especially if you:
   •    Have high living expenses
   •    Are self-employed
   •    Don’t want to drain your savings or investments
   •    Want peace of mind during recovery