If you are impacted by a serious and even life threatening illness like cancer or heart disease, in addition to dealing with the fear of such things and the idea of mortality are the treatment bills that are often overwhelming, staggering for many even if they have decent health insurance coverage. In such a scenario, critical illness coverage could be the saving grace.
What is this coverage?
Critical illness insurance is a kind of supplemental coverage that provides a pay-out should you be diagnosed with some serious (covered) illness. Such protection is often provided as an option for many people’s employers as part of a voluntary benefits package. This method is attractive as it allows for one to carry the coverage withlower group rates for the premiums.
Who can benefit?
Good critical illness insurance coverage can be a great fit for just about anyone, but it is certainly most beneficial for certain individuals. For instance, should you work for an employer who will not pay you while you’re unable to work due to illness, purchasing this type of coverage is especially important. It's also tailored for those whose health insurance necessitates big out-of-pocket costs. A critical illness policy can also provide great peace of mind to parents or care-givers who take care of any loved one who is challenged by such illnesses.
How does it work?
If a policyholder is eventually diagnosed with a covered illness, he or she must file a claim with the insurance provider. Once this is successfully accomplished, the policy pays out a lump sum amount to you equaling the policy’s limit. The good news here is that you are entitled to the payment whether or not you carry other insurance coverage. And more good news: You can use the payout for whatever purposes you wish, even for those not directly related to the illness.
Types of coverage
Critical illness insurance protection tends to be standard with a rather narrow range of life-threatening illnesses being covered. The covered illnesses in the vast majority of policies include cancer, heart disease and strokes. Some might even cover other illnesses too. Others provide coverage for serious injuries as well as illness.
The big benefit of purchasing critical illness coverage is the insurance company’s promise of a potentially substantial pay out should the policyholder become temporarily (or even permanently) disabled due to a covered illness. This lump sum can assist you in paying medical costs or to provide for daily and/or monthly expenses, like home mortgage payments for instance. This can be your hedge against losing it all financially and being solvent in the face of medical expenses.