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Critical Illness insurance

Critical illness insurance is a policy that covers people in case they come down with a critical disease. Another name for this type of insurance is dread disease insurance. It covers a slew of diseases such as cancer, HIV, Parkinson’s disease, Alzheimer’s, multiple sclerosis, kidney failure, stroke and more. The list of qualified illnesses is much longer. Interested persons can ask about specific illnesses to ensure that they have coverage for diseases that they are likely to contract due to family history. The policy will not cover preexisting conditions but will cover conditions that arise later. The policy kicks in when the person receives a diagnosis for one of the illnesses, waits the specified time period and waits for the investigators verify the illness.

Critical illness insurance has several models and types. The lump sum model is the type that is the most common. This policy pays out a predetermined lump sum of cash if the policyholder comes down with an illness that is on the list. A less common type of policy is one that pays the person monthly or biweekly like a regular job would pay him or her. Alternatively, some policies are set up to pay the medical providers directly. It all depends on the terms of the policy. Therefore, a prospect should always make sure to ask an agent as many questions as possible to ensure that he gets a good one.

The waiting period for benefits is usually two weeks or less. The person has to survive for that amount of time before the insurance company will pay the claim. The money from the claim covers medical bills, living expenses, lost income and recovery expenses. Many benefits exist to having such a policy, but the main one is that a policyholder can survive if something horrible happens. Many people are caught off guard when these illnesses hit because they have no coverage for themselves. This policy allows them to have a blanket of security so that they don’t lose their homes or burden their families if they do come down with a terminal or devastating illness.