Critical Illness Insurance
Being stricken with a critical illness is a financial and a mental burden. You may no longer be able to work, and there will probably be huge medical bills. Critical illness insurance is one way to ease the financial burden.
How it Works
Critical illness insurance is a supplemental insurance policy. It pays a predetermined sum if the policyholder is diagnosed with a critical illness covered by the policy. These policies often are offered as an option in workplace benefits packages.
Coverage for the Critically Ill
Anyone can get a critical illness policy. But they are most useful for people who would face serious financial hardship if hit with a major illness. An example would be someone who doesn’t have paid sick leave on their job. It also might be a good idea for someone who has a family counting on his or her income.
How it Works
When you are diagnosed with a critical illness, you receive a payment for the agreed upon amount. You can then use this money however you want. Most people pay medical bills or cover household expenses.
Critical illness insurance is standard from policy to policy. However, it may differ in the types of illnesses covered. Some policies also cover accidents that cause serious injuries that leave you unable to work.
It’s beneficial to have this type of policy in case you’re stricken with an illness. It helps to have financial backup if an illness prevents you from working. You will be able to cover medical bills, and make up for lost pay. And if you can get a policy through your job, then it will be less expensive than buying the policy on your own.