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June 20, 2019

Filling the Coverage Gap: The Role of Critical Illness Insurance

dread disease insurance

What is Critical Illness Insurance?

Technology these days is continuing to get better and more apparent in our lives. With the help of modern medical practices, treatment, and medication, people are able to live beyond life threatening events. Unfortunately, they are faced with medical bills. Because of that, critical illness insurance was created to help bridge the gap between primary health insurance and out-of-pocket expenses.

What Critical Illness Covers

Critical illness insurance is there to help protect you against the cost of heart attacks, strokes, organ transplants, cancer, or other critical illnesses. Depending on the Company, the protection for different illnesses may vary. These type of illnesses require a lot of medical attention and treatment, which can very quickly add up.

Most critical illness claims end with a one-time, lump sum payment that is received after diagnosis for an illness in the policy contract.1 Some critical illness policies can fund non-medical challenges associated with the illness as well, such as child care or transportation costs associated with treatments. Be sure to understand your contractual agreements because there are conditions that must be met to reap the benefits of your policy.2 It is essential to make sure you have this type of insurance before the illness occurs. No costs will be covered if the insurance is purchased after the fact.

What Critical Illness Insurance is Not

While critical illness insurance helps with covering health issues, it’s important to realize what it does not cover.

Critical illness is not the same as primary health insurance. Primary health insurance acts as though it is the only coverage available to take care of the bills, therefore it’s the front wall that funds your medical bills3. While your critical illness policy may cover bills for cancer, it is not a cancer-only plan. It has the ability to cover multiple illnesses that may arise. Moreover, it is not a life insurance policy. There is not a death benefit for a critical illness policy.

Critical illness insurance may be something for you to consider if you want extra protection for the unexpected.

  1. Critical Illness Insurance: What Is It and Who Needs It?, 2018 Investopedia
  2. What Is Critical Illness Insurance?, 2019 Thebalance.com
  3. Gusto.com, What’s the Difference Between Primary and Secondary Health Insurance?, 2019

Categories: Critical Illness Insurance, Life Insurance, Supplement Health Insurance

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