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Critical Illness

Critical illness insurance coverage is a special kind of policy that helps an insured person if he or she becomes ill with either a serious or terminal illness. The policy will usually issue a lump sum payment to the insured individual so that he or she can handle the household bills, the medical expenses, and the general living expenses one normally has in the event of chronic illness and not able to work. A critical illness insurance policy can help replace any lost wages due to one’s debilitation as well. This kind of a policy is for anyone who wishes to have extra added protection to existing coverage.

An individual with no insurance can purchase a critical illness policy too, though with the Affordable Care Act in effect this is becoming increasingly uncommon. Most of those who buy such coverage have dependents and, consequently, they may wish to feel the peace of mind that is inherent in knowing that their children are well protected should something happen to them. Some obtain these kind of policies to be sure that they can handle their mortgages if serious illness strikes, putting them out of commission for a while.

Being qualified for a critical illness coverage (CIC) policy can be a challenge, especially if an individual has a lifestyle that would put him or her in a position in which certain illnesses are more likely. For instance, a cigarette smoker will be mandated to pay a higher premium than a non-smoker as smoking is directly causative for cancer. Many policies are quite easily issued while others need comprehensive health investigation of the potential policyholder.
The premiums of these policy types can be fixed or made reviewable. Fixed premiums do not change over the years while renewable policies leave premiums to the chance market circumstances.

The typical CIC policy protects the insured for a myriad of disorders and illnesses. Some like heart attacks, cancer, AIDS, Alzheimer’s, emphysema and others fall under this kind of a policy’s purview. Each insurance provider will likely have a different litany of illnesses that are covered, so be sure to inquire. Most of these policies require a waiting period that the individual must endure before the company releases a payment for whatever illness is being tolerated. The waiting period can be anywhere from eight to two weeks or more. The policyholder must stay alive during the waiting period in order to receive the benefits of coverage. After the period expires, the insurance provider can make payments if the patient is approved and has provided the necessary documentation.






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