Customer Friendly Critical Illness Insurance Coverage
Critical illness insurance is a plan in which the insurance company undertakes to provide a tax-free, lump sum of money to a policyholder should he or she be diagnosed with one or more of a wide range of critical ailments that are under policy coverage. The insurer’s obligation to provide payment is often subject to a survival period for the sufferer and the aforementioned diagnosis of the condition by an independent specialist along with appropriate diagnostic tests. The coverage was first offered around 1996 when insurers determined that surviving a critical illness could leave a person burdened with overwhelming medical costs. Each insurance company provider will have its own list of ailments that it is willing to cover under their individual plan offering. Some of the typical illnesses that critical policies often cover are cancer, emphysema, kidney failure, coma, blindness, heart attack, and HIV, all of which must be somehow occupational in relation. Good critical illness insurance can help families in avoiding financial ruin that is often the result of runaway treatment costs.
How it Works
The insured pays his or her monthly premiums and then, when some covered illness strikes, must file a claim. This happens after he or she receives the expert diagnosis for the condition under the policy coverage. After the person survives with the condition for a requisite number of days, the policy can then pay out. The individual may also be oblige to pay a deductible as outlined in the policy.
If a critical illness strikes, you will still need to keep your standard health insurance premium payments up-to-date and pay for any deductibles or co-pays, not to mention keeping current with your mortgage, auto payment and other expenses. It can sometimes take six months more to achieve recovery from whatever illness you face. Some insurance providers will even pay out partial coverage should you be able to continue employment as a part-time worker.
Medical costs are often the biggest reason why Americans go bankrupt. With this in mind, it seems obvious that many can benefit from good critical illness coverage. A critical illness policy is relatively inexpensive and can be a great option for a policyholder and his or her family.