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Critical Illness Insurance

Critical illness insurance can be for anyone as an extra blanket of protection against unexpected conditions that may occur in life. It’s a policy that covers a specific list of severe disease and disorders and distributes a lump sum of cash to a person who qualifies for a claim payment. Sometimes, employers offer this coverage to employees as a part of their benefits package. Employes can purchase it and allow their employers to take the payment for it out of their paychecks every week or every other week.

Each insurance company has a list of ailments that it is willing to cover under the policy. Examples of some of the illnesses that critical policies may cover are conditions such as cancer, emphysema, kidney failure, coma, blindness, heart attack and HIV that comes from one’s occupation.

The insured person pays a monthly premium for the coverage and then must file a claim if he or she receives a diagnosis for a condition that the policy covers. To receive a lump sum payment, the individual must have a verifiable diagnosis. The person must also survive with the condition for a number of days before the policy will pay. The individual may also have to pay a deductible. The deductible will be outlined in the policy.

The insurance company will have to investigate the matter and then decide whether it will render the person eligible or ineligible to collect the monies. If the insurance company decides to make the payment, the insured party will receive a lump sum of money that he or she can use for a variety of purposes. The individual can use the funds to pay the medical bills that the illness accumulated. He can use the monies to pay the bills while he is ill. Additionally, he can decide to use the funds in place of the wages that he loses while he cannot work.

Critical illness coverage is usually a one-time lump sum payment that covers one claim. The insured and the insurance company determine the amount of the payment before the person signs up for the benefit.