Critical Illness Insurance Policies
Critical illness insurance is coverage that offers the insured benefits in case of a critical illness. This is generally defined as cancer, stroke, or heart attack, though coverage for other illnesses may vary by insurer.
This type of insurance typically provides a lump-sum payment if the insured experiences one of the critical illnesses covered. While employer-offered health insurance helps cover doctors bills and prescriptions, insurance for critical illnesses is typically to use as the insured wishes. It helps fill in the gaps that the health or disability benefits offered by employers do not cover, and stays with the insured even if they leave their employer.
Critical illness insurance can help anyone. Even with a healthy diet and lifestyle, it's possible to become seriously ill. People who don't have a large savings account to help them weather recovering from a stroke, cancer, or other illness should consider carrying this type of coverage to protect themselves and their families.
Insurance for critical illnesses works like other types of insurance. First the potential insured must meet the criteria for coverage under an insurer's plan, including any preexisting conditions clauses. Then the insured pays regular premiums to cover themselves (and any insured dependents), which may vary based on the age of the insured. If the insured contracts one of the illnesses covered by their plan, they receive their benefit payments.
While this type of insurance typically gives the insured a lump-sum payment once they are diagnosed, alternatives exist. Some pay hospitals or doctors directly to cover expenses that aren't covered by employer benefits. Others offer the insured and their families the option to travel to hospitals that specialize in treating their condition, and cover their accommodations while doing do.
The major benefit to having insurance for critical illnesses are the lump-sum payout and peace of mind that comes with knowing that, in the event of a serious illness, one doesn't need to rely solely on health benefits or their savings to cover expenses. The payouts offered by this type of insurance can mean the difference between an easy recovery and a difficult one.