Critical illness insurance is an insurance product where the insurance company makes a lump sum payment if the policyholder is diagnosed with one of the illnesses covered by the policy. This type of policy may be structured to pay out regular income to compensate for inability to work due to a critical illness. Policyholders undergoing a surgical procedure, for instance a heart bypass operation, may also be eligible for a payout though critical illness insurance.
Some stipulations on critical illness insurance may require the policyholder to survive a minimum number of days from the time the illness was first diagnosed. This “survival period” will vary from insurance company to insurance company, but typically the period is at least 30 days.
Critical illness insurance originated with the intention of providing financial stability and protection for those diagnosed with a qualifying illness. Additionally, it is the intention of the critical illness insurance policy to be used for:
• Covering the costs of treatment and care
• Payment of rehabilitation aids
• Payment of debts incurred as a result of illness
• Replacement of lost income due to inability to work
• Funding lifestyle changes necessary to cope with critical illness
Critical illness insurance may be an excellent choice for you to protect yourself and your family from the financial burdens that are associated with critical illness. To see a quote from a reputable insurance provider, just fill out our short form.