Critical Illness Insurance

The Ins and Outs of Critical Illness Insurance


Good critical illness insurance is a type of coverage the safeguards people from the possibility of contracting certain illnesses. This kind of insurance is sometimes referred to as “dread disease insurance.” Under the policy’s purview are such diseases as cancer, AIDS, Parkinson’s disease, Alzheimer’s, multiple sclerosis, kidney and heart failure, stroke and more. Those interested can look into what specific illnesses are covered so as to understand the extent of coverage for diseases that they might be vulnerable toward contracting due to family history. Keep in mind that this coverage will not extend to preexisting conditions but only covers conditions that can strike down the road. The policy is activated when the policyholder receives a diagnosis for one of the qualifying illnesses, waits through the specified waiting period and after an investigator verifies the illness.

Types of Coverage

Critical illness insurance comes in different forms. The most common kind is the lump-sum model. This kind of plan compensates by providing a predetermined amount of cash should the policyholder fall sick with a covered illness. A less common form is the kind that compensates the person monthly or every two weeks, similar to how a regular job might pay. On the other, some plans are engineered to pay out directly to the medical provider. One who is shopping for this coverage would be wise to seek out an insurance professional to learn more about these options and protections.

More Details

In most cases, there will be some sort of waiting period imposed upon a policyholder prior to benefits be made available, usually two weeks or sooner. Essentially, the individual will need to survive for that periof before the insurance provider will pay out for the claim. The claim benefit will normally cover such things as medical and living expenses, lost income and costs incurred during recovery. There are many benefits in carrying such a policy, but the biggest might be how a policyholder can be helped to survive some of life’s worst curve balls. Many are shocked when a critical illness strikes as they often have no protection in place. This coverage allows them to have the peace in mind in knowing that they won’t lose their homes or put undue stress upon their families if they experience some kind of a terminal or devastating illness.