Critical Illness Insurance

Critical illness insurance is a type of supplemental coverage that pays a lump sum benefit if you are diagnosed with a covered illness. It is designed to cover the cost of treating and recovering from expensive illnesses and procedures. These include heart attacks, strokes, and cancer. Critical illness insurance can pay for costs not covered by health insurance, such as deductibles and out-of-pocket costs. You can also use the funds for travel expenses and your regular bills.

Critical illness insurance provides a one-time payment based on the contractual benefit, though it may be less depending on the severity of your condition. Individual policies generally do not require underwriting, except for a series of yes-no questions to record any pre-existing conditions. If, however, you are seeking higher amounts of coverage, you may be subjected to full underwriting.

The primary benefit of an individual critical illness insurance policy is that it can be better customized to meet your personal needs. If you do not have access to group coverage through your employer, an affordable individual policy can be purchased on your own. Putting an individual critical illness insurance policy in place may be a worthwhile investment if you have a high-deductible health insurance plan or do not have sufficient emergency savings.