When you have a severe illness or health condition, paying your treatment costs can be extremely expensive. This can even cause you to file for bankruptcy. Critical illness insurance coverage can allow you to take care of your family while recovering from your illness.
What Is Critical Illness Insurance?
Three major health issues are covered under this insurance policy. These illnesses include heart attack, stroke, and cancer, which could lead to other health problems, such as organ transplants, kidney failure, and paralysis. These are all very expensive, which is why you want to consider critical illness insurance to cover these costs.
How Does This Coverage Work?
With critical illness coverage, the insurance coverage pays out a lump sum to the insured if they are diagnosed with one of the illnesses covered. This sum is tax-free and is paid after your initial diagnosis, but the insured has to survive a certain amount of time before receiving the payout. This time period can vary from just 14 days up to 30 days.
Critical Illness Coverage
With most types of policies, the amount paid can vary. The majority of plans offer a payment somewhere between $5000 and $50000, but the more you pay for your monthly premiums, the higher the payout.
Critical illness insurance has one most important benefit. That is that it offers financial compensation during a time when you may not be working. This can allow you to care for your family and take care of treatment costs that are not being covered by your traditional health insurance.