Paying for treatment for a severe health condition can be very expensive, which can cause you to be forced to file for bankruptcy. Critical illness insurance was created to help these families during a severe health crisis.
What Is It?
There are three very common health conditions that are covered under this type of policy. These are stroke, cancer, or heart attack, which could lead to paralysis, organ transplants, or kidney failure. The supplemental insurance is something that you want to think about to make sure that you are able to cover your medical costs.
How Does It Work?
The insurance company pays a lump sum amount to the insured if they are diagnosed with one of the illnesses in the policy. This tax-free sum is paid after the initial diagnosis, but the insured must survive a certain period of time before receiving the money. This time period can vary from 14 to 30 days.
Critical Illness Coverage
Just as with most insurance policies, it can vary from policy to policy how much is paid to the insured. The majority offer a payment between $5,000 and $50,000. The more that you pay per month, the higher the amount paid.
The most important benefit is the fact that it offers financial compensation during a time of great upheaval. This can help to care for your family if you are not able to work or if you are dealing with major costs.