Critical Illness


What It Is…

Critical illness insurance is more than the health insurance plan that you receive with your employee benefits. This insurance protects you after you have been diagnosed with a serious illness and cannot work. Many employers offer this insurance as a voluntary benefit. If this is not the case for you, you may purchase an individual critical illness insurance policy from a private insurance company.

Who It Is for…

Critical illness insurance is for you if you wouldn’t necessarily need a lot of protection in the event that you are diagnosed with an illness and cannot work. If you are concerned about having to undergo a medical examination for other types of insurance products, you can avoid the examination with critical illness insurance.

How It Works…

To qualify for critical illness insurance, you would need to be diagnosed with one of the covered illnesses. These fall under three categories, including cancer, heart conditions and other illnesses. The other illnesses include ALS, paralysis and severe burns. Once this occurs, your insurance company will provide you with a lump sum of money that will cover the costs of treating your illness. Some people receive around $2,000, but if your policy allows, you may receive at least $100,000.

Different Types of Coverage in Existence…

If you aren’t interested in purchasing a full critical illness insurance plan, you could add a critical illness rider to your life insurance policy. The rider will act in the same way as a critical illness insurance policy. If you are diagnosed with a covered illness, you will receive a lump sum of cash.

Major Benefits…

Your health insurance plan may not cover all of the medical bills in full if you are diagnosed with a critical illness. In addition to that, your health insurance will not cover child care costs, cleaning expenses and the care you may need in your home. You would have to pay for all of these services if you do not have a critical illness insurance plan. According to CNBC, 66.5 percent of bankruptcies filed this year were due to medical issues. Critical illness insurance would save you from this unfortunate reality.