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Critical Illness Insurance

Learn about Critical Illness Insurance


Good critical illness insurance is a kind of coverage that protects policyholders from the costs of contracting certain illnesses. Policy protections include such diseases as cancer, AIDS, Parkinson’s disease, Alzheimer’s, multiple sclerosis, kidney and heart failure, stroke and more. Those seeking coverage can look into what specific illnesses are under a policy’s umbrella so as to understand the extent of coverage for diseases for which they might be vulnerable toward contracting. Keep in mind that this coverage will not extend to preexisting conditions but only covers illnesses that may happen in the future. The policy is activated when the policyholder receives a diagnosis for one of the qualifying illnesses and waiting for a specified period of time after an investigator verifies the illness.

Kinds of Coverage

Critical illness insurance comes in different forms. The most common type is the lump-sum model. This kind of plan pays out by providing a predetermined sum should the policyholder contract a covered illness. A less common coverage is the kind that compensates the person monthly or every two weeks, similar to how one’s job might pay. Some plans are designed to pay out directly to the medical provider. One who is seeking this coverage is smart to speak with an insurance professional to learn more about the options and protections.

More Details

As mentioned, usually there will be some sort of waiting period before benefits are made available, usually around two weeks. Basically, the policyholder will need to survive for that period before the insurance provider will compensate the individual. The claim benefit will normally cover such things as medical and living costs, lost income and expenses realized during recovery. There are many benefits in having such a policy, but the biggest of which might be how a policyholder can be helped to survive some of life’s biggest challenges. Many are shocked when a critical illness strikes as they often have no protection to help them through such a hard time. This coverage can provide the peace in mind in knowing that homes won’t be lost or loved ones won’t have undue stress put upon them if the policyholder experiences some types of serious illness.