Critical Illness Insurance

Critical Illness Insurance Overview

Intro

Critical illness coverage has wide range of benefits. Insurance companies began selling this type of policies at the end of the last century. Today, it is a big market and, the last time the numbers were examined, in America there was about $12 billion worth of critical medical coverage in effect. Good critical illness insurance can prevent families from experiencing financial ruin due to the costs of treatment.

Who Benefits

This coverage can protect policyholders from a myriad of illnesses. Illnesses and coverage include Alzheimer’s disease, kidney disease, multiple sclerosis, the need for an organ transplant, paralysis, Parkinson’s disease, heart disease and strokes, and even cancer. If the policyholder is diagnosed with one of the covered diseases, the insurer will normally make a lump sum cash payment. In other instances, the insurer will pay for the cost of treatment directly rather than the provision of cash directly to the policyholder.
Good critical insurance can compensate not only for your medical expenses should you become ill, but for the lost income due to the medical condition that leaves you unable to work. If you are an individual with concerns about your health in the future, whether it is due to the nature of your employment or, say, your family history or just the desire to have all potential risks covered, looking into purchasing good critical illness insurance is a wise move. (Keep in mind that once you are sick, the insurance company will not consider providing new coverage to you.)

How It Works

Critical health illness policy premiums are determined in part by the age of the potential policyholder. If one is super healthy and young, it makes sense that rates will be lower. Conversely, those who have been around the block a few more times will likely pay higher rates. Obviously, insurance providers take into account the fact that older people are more likely to experience more health issues. When one is covered, he or she simply makes a monthly payment (premium) to the insurance company. If one is stricken with a covered illness, then the insurance company makes the agreed upon payout.

Kinds of Coverage

There are different types of critical illness insurance coverage available. The most common offering is designed for cancer. This kind of a policy will cover you if cancer befalls you. There is also a wide variety of other offerings, as itemized above. Talk to an insurance professional today for more information.

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