Critical illness insurance is an insurance product that covers the policyholder if he or she is diagnosed with a specific illness that is predetermined under the policy’s inclusions. Coverage under this plan can help pay for medical costs not covered by standard insurance plans and can help with other non-medical related expenses.
This type of coverage adds a layer of protection for individuals with any family history of the illnesses mentioned below, those with primary plans that have high deductibles, those who have exhausted their benefits, and those who desire additional coverage to protect themselves and their family from financial distress following unexpected or life-changing diagnoses.
This insurance plan works by providing financial protections to the policyholder following the diagnosis and treatment of specific illnesses underlined in the policy. Commonly covered illnesses and diagnoses may include cancer, major organ failure, brain tumors, coma, paralysis, heart failure and heart attacks, Alzheimer’s disease, and more.
The different types of coverage for this type of policy include lump-sum payouts which may be used to help cover non-medical costs incurred by illnesses and loss of work such as car payments, mortgage payments, child care tuition, and general expenses. The lump sum is typically paid directly to the insured. Some policies will pay the medical provider directly for office visits, surgical procedures, and other expenses incurred because of the illness and subsequent treatment.
Major benefits of carrying this coverage add a layer of protection for your family in the event of unexpected illnesses and critical diagnoses. The benefits included under this plan may help with expenses not covered by primary plans due to high deductibles, excluded illnesses, and diagnoses, and other financial expenses incurred because of the diagnosis and/or missed time from work. Medical bills are the number one cause of bankruptcy in the U.S., carrying critical illness insurance coverage adds additional peace of mind for the policyholder and their family.