What You Should Know Before Purchasing Critical Illness Insurance

Charlotte Miller

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Everyone wants to believe that it will never happen to them, and often, they are right. However, the truth is that we simply can’t predict the future. That’s why we have decided to discuss critical illness insurance and why it may be one of the most important purchases of your life. Now, we don’t want to sound doom and gloom, but the topic of insurance has come up a lot recently, and we believe it is essential to set things straight. Everyone hopes that they never need to use it, but it certainly puts us at ease having it. This article will explain what critical illness insurance is, what it can cover, and some things you should be aware of before investing in a policy.

What is Critical Illness Insurance?

Critical illness insurance is one of the most straightforward insurance policies to understand. It is designed to give people a large lump sum payout if they are affected by a specific critical illness or medical condition. With almost half of Australians dealing with chronic health conditions at some point throughout their life, we think it is crucial to ensure you are covered for these unfortunate times.

The Key Benefits

While you need to check what your critical illness insurance will cover, there are some incredible benefits that come with every policy. Its flexibility, along with financial stability, peace of mind, and coverage of financial gaps, make it essential to add to any policy.

Flexibility – By flexibility, we mean that the money is not restricted in terms of where you can spend it, unlike some policies that might only cover medical expenses.

Financial stability – This means that you will receive a lump sum that you can spend on mortgage payments, general living, or anything else you want.

Peace of mind – Knowing that you have this financial security means you can spend less time stressing and more time focusing on the important things in life.

Covering the gaps – Critical illness insurance can also fill in the financial gaps if you are awaiting other insurance payouts or aren’t entitled to certain benefits.

What your insurance should cover

In Australia, you will usually find that critical illness insurance is bundled with other forms of health and life insurance, so it is crucial to double-check what it might actually cover. All policies can differ, but they should cover illnesses and injuries such as cancer, heart attack, stroke, paralysis, loss of sight, kidney failure, Alzheimer’s, Parkinsons, severe burns, major organ transplants, and any other major infliction we could face in later life. It is also imperative to note down any genetic issues you might likely face. This might up the premium, but it will, of course, be worth it in the long run.


We can’t stress enough how important it is to cross-check your insurance policy and ensure it is right for you. Insurance is certainly something we should think about spending a little bit extra on. The last thing anyone wants is to need it and not have it.