Medical advances keep us healthier. However, debilitating illnesses still affect thousands of people, and the costs of treating those illnesses cause many medical bankruptcies. With Critical illness insurance, you may get the treatment you need, keep your home and other assets, and spend time with your family.
Covered conditions
Dozens of medical conditions, including injuries, disease and surgeries, are covered under this type of policy. Several examples include:
- Alzheimer's disease
- Cancers
- Coma
- Heart attack
- Heart valve surgery
- Kidney failure
- Loss of sight/speech/hearing
- Multiple sclerosis
- Organ transplant
- Paraplegia
- Severe burns
- Stroke
Many insurers group benefits into categories such as cancer and related conditions, organ transplants and heart-related conditions. You may purchase coverage for one category or choose a policy that includes all categories.
Policy amounts and benefit payment
Policies usually range from $10,000 to $1 million. When you file a claim, the insurer will typically pay benefits in a lump sum. You may then use the money for any expense you wish, including:
- Medical bills, deductibles, co-payments or diagnostic testing
- Experimental treatment
- Out-of-network doctors and hospitals
- Transportation to treatment
- Wheelchair or other medical equipment and supplies
- Home health care
- Home improvements or retrofitting
- Household living expenses
- Income replacement
- Family vacation
- Childcare
Coverage terms vary; many policies provide protection for two to 25 years. While a policy remains in effect as long as you pay premiums, most policies include a waiting period (also called an elimination period) before benefits are payable.
Costs and underwriting
Your age, height, weight, family health history, nicotine use and current medical conditions affect the cost of this coverage. Premiums may increase when these factors change.
Costs also depend on the amount of coverage you buy. When choosing an amount, consider at least two years' worth of mortgage or rent payments and the balance of outstanding credit card debt.
How to purchase
When you decide this coverage is right for you, you can buy it in several ways:
- Purchase an individual policy, which may include a medical exam.
- Add the benefit through your employer's benefits package and pay the premiums through payroll deduction; you'll either receive a certificate under your employer's group plan or an individual workplace policy.
- Add it as a supplement to your major medical health insurance policy.
- Purchase it as a supplement to your life insurance policy.
Learn more about Critical Illness Insurance Programs and options some providers offer. Some carriers also market related Critical Care Insurance.
If you want personalized help, talk to an agent.
With this coverage, you can afford medical treatment and provide for your family. It gives peace of mind and may be a wise investment.
Frequently Asked Questions
What types of expenses can the benefit cover?
The lump-sum benefit can be used for medical bills, experimental treatment, transportation, home care, living expenses or anything you choose.
When does a policy pay benefits?
A policy pays benefits only after a covered condition is diagnosed and any waiting period in the policy has been satisfied.
How long does coverage last?
Term lengths vary by policy; common durations range from two years up to 25 years, depending on the plan you select.
Can I get this coverage through my employer?
Yes. Many employers offer it as a workplace benefit and pay for it through payroll deduction with either a certificate or an individual workplace policy.