Critical illness insurance is a type of insurance policy that provides a lump sum payment to the policyholder if they are diagnosed with a serious illness or medical condition that is covered by the policy.
The purpose of this insurance is to provide financial support to the policyholder during a difficult time when they may be unable to work or require expensive medical treatment.
Critical illness insurance typically covers a range of serious illnesses, such as cancer, heart attack, stroke, and organ failure.
The specific illnesses covered will depend on the policy and the insurance provider. Some policies may also cover less common conditions, such as multiple sclerosis or Parkinson’s disease.
When a policyholder is diagnosed with a covered illness, they will need to provide medical evidence to the insurance provider.
If the claim is approved, the policyholder will receive a lump sum payment, which can be used to cover medical expenses, living expenses, or any other costs associated with their illness.
It’s important to note that critical illness insurance is not the same as health insurance.
Health insurance typically covers the cost of medical treatment, while critical illness insurance provides a lump sum payment to the policyholder.
Additionally, critical illness insurance is not a substitute for disability insurance, which provides ongoing income replacement if the policyholder is unable to work due to illness or injury.
Illnesses covered by critical illness insurance
Ideally, critical illness insurance is a type of insurance policy that provides additional coverage for medical emergencies like heart attacks, strokes or cancer.
Critical illness plans often cover diseases like cancer, organ transplant, heart attack, stroke, renal failure and paralysisamong others.
However, there are exceptions to critical illness insurance coverage.
Some types of cancer may not be covered, while chronic illnesses are also frequently exempted.
The list of covered illnesses varies from one plan to another, and there is no coverage if you’re diagnosed with a disease that isn’t on the specific list for your plan.
Critical illness insurance is designed to help you and your family with additional expenses that come with critical illness health emergencies.
The additional protection helps you focus on recovery rather than costs, and benefits can be used for any expenses that come during those tough times.
A critical illness insurance plan typically provides a lump sum payment when you have a verified diagnosis of a covered illness.
Pay-outs can typically be used to cover medical bills, living expenses, or other costs associated with the illness.
Exactly how much your critical illness plan pays out depends on your insurance provider and the type of plan you’ve selected.
It is important to note that critical illness policies are subject to a host of stipulations, and they cover only the conditions listed in the policy under the specific circumstances noted in the policy.
Therefore, it is important to read the policy carefully to understand the coverage and stipulations.