Critical Illness Insurance

Critical Illness Insurance Explained

Expenses from a critical illness are forcing people to file for bankruptcy. Worse still, even the best health cover today has co-pays and deductibles. If your health cover provides an HMO, it might not cover services beyond the network. For individuals suffering from critical illness, the primary concern is always to get the best possible care- at whatever cost. A critical illness insurance cover is exactly what you need.

This specialized insurance cover offers a lump-sum, tax-free payment if a policyholder suffers from certain critical conditions. Many Americans now have this product purchased on an individual level or through a plan provided by the employer.

Why you Might Need a Critical Insurance Policy

A critical illness policy will help you get cash to:

• Cater for medical treatments not catered for by your health plan
• Pay your mortgage while recovering
• Pay other bills such as car payments and insurance premiums
• Cater for experimental treatments (not included on the cover)
• Travel for treatments not found locally
• Replace your spouse’s income while taking care of the insured

Which illnesses are Covered?

The kinds of illnesses covered by this insurance are usually long-term and critical such as stroke or heart attack, loss of legs or arms, or illnesses such as cancer, Parkinson’s disease or multiple sclerosis. It is important to note that what is covered varies from one insurer to the next, so it pays to read through the policy before signing it.

How Does it Work?

As mentioned above, critical illness insurance cover pays a lump-sum, tax-free payment in case you are diagnosed with one of the critical diseases covered by your policy. You also have to satisfy the survival interval for these illnesses. You will simply get one check for the entire amount; although some policies will pay you multiple times.

If your illness has left you penniless, having a large sum of cash to spend on things such as paying off your medical expenses or mortgage can come in handy. The best part is that you can use this cash on anything; you are not limited to spending it on something in particular.