What is Critical Illness Insurance, and how can it help you?
Life often presents the most inconvenient challenges at the most inappropriate times. One moment, you are excited about your upcoming vacation, and the next, you are in a doctor's waiting room, being informed of news that will turn your world upside down. While we cannot know when a life-altering disease will strike us, we can certainly prepare ourselves for its financial effects.
This article tells you what critical illness insurance is, how it works, and why it is the best investment you will ever make to ensure your future.
A critical illness insurance policy pays out a fixed cash amount if you are diagnosed with one of the serious illnesses listed in your plan. Unlike regular health insurance, which pays doctors and hospitals, this policy pays you directly, with no limits, offering you a flexible way to use the lump-sum amount.
These policies typically cover serious health conditions like cancer, heart attacks, strokes, organ transplants, and kidney failure. Some plans also cover Alzheimer's or paralysis resulting from accidents.
Consider John, 42 years old, an electrician with two kids. John, despite having adequate employer-provided insurance, discovered that his standard coverage was not sufficient to meet all his financial needs following his cancer diagnosis.
His critical illness insurance paid him $50,000 upon diagnosis. That money was applied to his $3,000 health insurance deductible, 20% for treatments, and, most importantly, lost income for the three months when he could not work to receive treatment. John's family might have faced great financial hardship without this protection during stressful times.
Even with good coverage, a life-threatening condition can drain your resources in unexpected ways. Some of these incidents include.
For low-income or middle-class families, these costs can quickly empty savings or leave them deep in debt. Having a financial cushion with critical illness coverage can be the difference between concentrating on recovery and stressing about bankruptcy.
Your regular health insurance pays medical professionals for the treatment you get. On the other hand, the best health insurance plan for critical illness coverage pays YOU directly when you're diagnosed with a covered condition.
With critical illness insurance, your health insurance covers the initial medical expenses, and critical illness insurance covers the balance. Critical illness and health insurance complement one another by providing a total safety net.
When investing in the best critical illness insurance policies, observe key information such as conditions covered, benefit amount, and whether the payment reduces with age. You may also inquire about a waiting period before the coverage is activated, since some policies have a waiting period before the benefits are paid.
Nobody can prevent something that is written in their fate. A serious health issue can knock on your door out of nowhere, but having proper financial planning can be the difference between financial ruin and a smooth recovery.
Accident critical illness insurance is a brilliant safety net that covers costs not reimbursable by standard health insurance. By purchasing the best health insurance policy for critical illness, you are protecting your health and that of your family as well.