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Critical Illness Insurance

In the aftermath of the tragedy of so many Americans having to declare bankruptcy resulting from a major illness, a new financial product was created referred to as “critical illness insurance.” This specialized insurance offering usually gives the policyholder a pre-determined lump sum payment of cash should he or she be diagnosed with various covered sever illnesses. It can be in concert with a package of insurance offerings that can protect employees through plans offered by their workplace.

When confronted by illnesses such as cancer, stroke and heart disease, critical illness insurance arrives on the scene with an injection of cash when it is most needed. The challenges inherent in surviving procedures like a heart or kidney transplant, angioplasty, a coronary bypass surgery or other long term effects like paralysis are great, so this is a kind of coverage that can help people get through such a burden and emerge financially intact. Due to the fact that medical issues are often the reason for bankruptcies, this is a kind of coverage that is designed to shield one from an uncertain future and mitigate any potentially severe financial consequences when major illness strikes.

In a nutshell, this is how critical illness coverage functions: Should a policyholder be diagnosed with a disease or condition that is covered under the insurance policy, the insurer will pay out a lump sum amount of cash to the policyholder. The amounts can vary from $20,000 all the way to a couple million dollars depending on the plan chosen and the premiums paid. In many instances, the policy can be structured to provide pay outs like a regular income rather than in the form of one lump sum. Policies can also be tailored to provide protection for than just conditions and diseases. Policies can also be engineered to cover major surgical procedures like an organ transplant or even heart bypass surgery. When such a procedure is necessary, the policy will either pay out the agreed upon lump sum payment or it might pay out to the provider of the health service provider rather than the policyholder.

Benefits include the funding for uncovered or experimental treatments, for the travel to and from treatment centers, for insurance premium payments, lost income and more. Call an insurance pro today for more information.