In the unfortunate event that you or a loved one is suffering from a critical illness, having critical illness insurance provides several benefits to you and to your family. Critical illness insurance is defined as insurance that pays a tax free, lump-sum benefit upon diagnosis of a critical illness or condition. A critical illness insurance payout may assist in the avoidance of financial strain on your family in the event of a major illness and will allow you to focus on recovery for yourself or your loved one.
Because a critical insurance payout is a tax free lump-sum of cash, you may choose to use this money in any way that you see fit. A few common examples of ways in which you may choose to spend this medical insurance are as follows:
1. Mortgage payments: Many families fall behind on mortgage payments, but this becomes especially common when a member of the family is in the midst of a critical illness. Mortgage payments can fall by the wayside while you worry about your health or the health of your family member and can often be overlooked in favor of paying for the medical bills associated with the critical illness. Further to this point, the funds can be used for many day to day expenses that are not currently being covered by an income due to illness.
2. Assistance around the house: Dealing with any sort of critical illness is incredibly difficult, not only on the affected person but also on his or her family members. You may find yourself needing some extra help around the house while dealing with the your illness or the illness of your loved one. The money provided from the critical illness claim may be just what you need in order to afford what can sometimes be incredibly expensive assistance.
3. Family vacation: While you may not think that this is the most practical way to spend critical insurance funds, it may be just what your family needs during this time. If you are the individual suffering a critical illness and have always wished to travel to one destination, this is your opportunity to do it. The same principle applies if it is an ill loved one who would love nothing more than to travel to his or her dream destination.
4. Medical bills: This one may be the most obvious option of the four. Medical bills are undoubtedly incredibly expensive. Although in Canada we have health care paid for in most cases, there will still often be the costs of hospital parking, hotels, and special treatment. If you or your loved one have acquired excessive expenses during the course of this critical illness, using your insurance payout toward medical bills may be the wisest way in which to spend the funds.It has been very common that people seek better or quicker treatment by crossing the border. Sometimes people feel the need to seek the best health care for their illness and this can mean traveling to another country.
Please feel free to share below any other ways you can think of spending these funds.
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