Critical illness coverage tends to be very broad in what it can accomplish. Insurance providers started selling these kinds of policies at the close of the last century. Today, this market is gigantic. Last time the numbers were released, Americans had about $12 billion worth of critical medical insurance coverage in effect.
How this coverage is defined varies, so be sure to shop around and do your research. For example, one company may write a policy that is specifically defined as: allowing activation of the policy if someone is so critically ill as to likely be passing away within a year. Another company, on the other hand, may allow for critical illness to be defined as confinement to a hospital bed. In general, one will receive better rates and benefits from one’s employer offerings. (Insurance providers offer better rates for group coverage.)
Most obviously, good critical illness insurance can compensate for your medical expenses should you become sick or have some kind of medical condition that puts you out of work. If you have concerns about your future health, be it due to the nature of your work or family history (to name two), looking into obtaining good critical illness insurance is a smart move. (Keep in mind that once you are sick, the insurance company will most likely not cover you.) This insurance is designed to help pay for the consequences of cancer, strokes, heart problems, organ transplants and more.
How It Functions
Critical health illness policies are in part based on the age of the potential policyholder. If one is robustly healthy and young, it goes to figure that the rates will be lower. Conversely, older folks will pay higher rates. This is due to the fact insurance providers take into account the fact that older people are more likely to have health issues. One, when covered, simply makes a monthly payment (premium)to the insurance provider. If one is stricken with cancer or becomes critically ill, the insurance company then makes the agreed upon payout.
Kinds of Coverage
Then, there are different kinds of critical illness insurance coverage. The most common one is designed for cancer. This policy type will cover you if cancer strikes. There are a variety of other offerings, such as protection for any terminal illness, kidney failure, blindness and deafness, strokes, heart disease and others.