Another form of insurance that is often overlooked but is very important to carry is known as critical illness insurance. This is a policy in which the insurance provider will pay an agreed upon lump sum cash payment to the policyholder if that policyholder is diagnosed with a critical illness that is listed within the insurance policy.
Some of the most common critical illnesses that are covered under the insurance policy include Alzheimer’s disease, blindness, deafness, multiple sclerosis, Parkinson’s disease, HIV/AIDS, a major organ transplant, kidney failure, and any terminal illness.
Conditions May Apply
There are certain conditions that may apply when it comes to this insurance. For example, a policy may require that the policyholder survive for at least 14 days after the diagnosis of the illness. The reason for this is that often a regular life insurance policy would pay out in the event of death, whereas critical illness insurance is designed for different purpose.
There will also be certain specific contract terms must be met with regard to this insurance. Many insurance providers will offer the same standard policy when it comes to critical illnesses.
Why You May Need Critical Illness Coverage
The original reason critical illness insurance was designed, which still holds true today, was to assist individuals who have been recently diagnosed with a critical illness. The financial burden that is often associated with critical illness diagnosis can include medical care as well as lost wages if the individual can no longer work.
It may also be required that the policyholder change his or her lifestyle which can be costly.
While you may not believe that critical insurance is important for you or your family, if you have a history of critical illnesses in your family, or live a specific lifestyle that may lead to any of the aforementioned critical illnesses, and you have assets to protect and a family to provide for, critical illness insurance would be a viable and reasonable policy to consider.
Contact an insurance professional at James~Campbell Insurance Brokers to learn more about critical illness insurance. It’s never too early to begin planning for the future and protecting your financial assets as well as your family and your health.