Many people are not adequately prepared financially when faced with a serious illness, despite having good medical coverage. Critical illness insurance can help lessen the burden of increased out-of-pocket expenses so that you can focus on recovery instead of your finances.
What is critical illness insurance?
Thanks to modern medicine, the survival rate of many formerly fatal conditions like cancer and stroke are climbing steadily. As a result, people may be unprepared for the costs associated while recovering. Health insurance can be a big help in covering medical expenses, but policies often come with high deductibles, and don’t cover other expenses such as housing costs, school tuition, the cost of food, and more. The purpose of critical illness insurance is to help supplement the benefits of traditional medical coverage and address the financial consequences of certain covered conditions.
What conditions constitute a critical illness?
The conditions that qualify as a critical illness can vary among insurance carriers, but examples of what might be covered include:
- Heart attack
- Certain cancers
- Kidney failure
- Alzheimer’s Disease
- Coronary artery bypass surgery or angioplasty
- Major organ transplant
What expenses does critical illness insurance cover?
Most critical illness policies allow you to spend the proceeds at your own discretion. For instance, you can use the benefits to pay for mortgage payments, medical treatments not covered by health insurance and to pay down credit card bills.
How are critical illness insurance benefits paid?
Again, this may vary among insurance carriers, but most offer a lump-sum to be paid to the policy holder upon the diagnosis of a covered condition.
Should I buy critical illness insurance?
This is something you will want to discuss with a trusted financial professional who can assess your individual situation and make appropriate recommendations.
Find out more about Voluntary Benefits You Should Participate In.