What is Critical Illness Insurance?
Critical illness insurance is for when a policyholder is diagnosed with a critical condition covered by the policy. The policyholder will generally be subject to a specific survival period before the policy will pay a benefit. There will also have to be a diagnosis and diagnostic tests done by an independent specialist in a particular area of medicine.
If your job offers term life insurance as part of your benefits package, then critical illness might be included. If that is the case then you can only file a single claim. For example, if you have cancer and take the critical illness coverage payout, then your term life insurer is discharged from any other obligations. If the cancer is ultimately fatal, the life insurance will not pay a benefit.
Even with a critical illness, you need to pay your health insurance premiums, deductibles, co-pays, mortgage, and so on. You also need to continue caring for your family. Critical illness insurance helps you with that. Some insurers offer partial coverage in case you are able to work part-time.
It is a fact that medical bills cause many people to file bankruptcy. The costs are astronomical for medical care. Risk insurance can possibly save you from that fate should you become ill. Do a risk analysis, and determine whether it’s worth the cost and the advantages to you.