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Critical Illness

Why Critical Illness Insurance?

Good critical illness insurance, as its name suggests, was created relatively recently to provide coverage for those stricken with any one of several listed critical illnesses. These include cancer, heart disease, Alzheimer’s, and so much more depending on the scope of individual policies. There are different types of policies that determine how critical illnesses are served in the medical facilities.


In some instances, the insurance provider will pay out a lump sum to the policyholder after he or she obtains an official diagnosis. Another possibility is that the patient may obtain compensation on a monthly basis or before major surgery is conducted. Many policies will have a 14-day survival period, which is the length of time that the policyholder stay alive after being diagnosed in order to receive benefits.
Employers often include this kind of insurance in benefits packages, while in other plans, the insurance company pays the medical provider directly. Policyholders can choose from hospitals that offer specialized treatment from a provider list. They also receive payment for transportation, nursing assistance and even temporary lodging.

How It Operates

Both the premium and deductible payments vary and are determined by certain factors of risk. The insurance provider retains a reference copy of common risk elements for a patient, such as age, whether he or she is a smoker, has current negative health issues and his or her family’s medical history. Some policyholders will be obliged to pay extra for coverage as a result.
Keep in mind that the aforementioned litany of critical illnesses under coverage is not applicable to all policies. Some kinds of cancers or heart ailments are excluded, while some policies mandate that symptoms occurring are of a permanent nature.

The Benefits

Critical illness insurance protects the policyholder from the financial repercussions of the expense of treating a major disease following diagnosis. Some providers will mandate specific testing to be conducted or that a medical specialist be the one who provides an objective diagnosis.
This type of plan covers older folks who might otherwise develop serious issues that might cause death. With coverage the resources are available to obtain early treatment, which can include hospitalization and necessary medication. Some can also be compensated for lost wages as they recover or have long term treatment.