Being diagnosed with a severe illness is not only difficult emotionally and physically, but can also be difficult financially. Many families are forced into bankruptcy due to costs associated with an illness. If you dont want that to be you and your family, consider critical illness insurance to help cover some of your costs that are not covered by your traditional insurance.
What Is Critical Illness Insurance?
Under critical illness insurance there are some very common illnesses and conditions that are covered. These conditions include heart attack, cancer, and stroke. All of these health problems can lead to others, such as kidney failure, organ transplants, and paralysis. The medical costs with these conditions can be exorbitant, which is why you need supplemental health insurance to protect your finances.
The Workings of Critical Illness Insurance
If you are diagnosed with an illness that is covered by the policy, your insurance company will pay out a lump sum to the insured and their family. While this tax free benefit is paid after diagnosis, the person insured must live for a certain period of time before getting the money. This time period can vary from 14 to 30 days after diagnosis.
Critical Illness Insurance Coverage
Depending upon the policy that you choose, the amount you are paid out if diagnosed can vary. Most policies offer a payment somewhere between $5,000 to $50,000, but this can vary widely. The higher the premiums, the more you are paid out if you are diagnosed with one of the illnesses covered by the policy.
Advantages of Critical Illness Coverage
The biggest advantage is the fact that it can offer financial payout at a time of great expense and emotional upheaval. This money can allow you to take care of your family if you are unable to work and facing some significant medical costs. It can keep your finances on stable ground and prevent you from being forced to file bankruptcy.
While no one wants to think about being diagnosed with a severe condition, if you are, you want to have critical illness coverage to aid you in taking care of the expenses.