Health insurance policies are special policies that protect consumers when they experience unexpected illnesses. The funds from the insurance provider usually cover some portion of a procedure or care tactic. Critical illness insurance is a policy that covers a person who receives a diagnosis of a specific illness. The illness must fall on the list of severe or critical illnesses for the insurance company to agree to cover it. Each provider has a different list of illnesses that it considers eligible for this special insurance. Each policy has certain stipulations on the covered party.
What Critical Illness Insurance Covers
Critical illness insurance is more than just payment to medical providers, although it does cover procedural expenses and medications. The insurance policy is unique in that it covers patients long after they receive the initial treatment. The policy covers recuperation aids and devices for long-term patients. Additionally, the policy covers lost income and lifestyle changes. Lost income always occurs when a severe illness strikes and several parties are usually affected by it. Critical illness insurance helps to support the ill person by putting money back into his or her pockets.
Illnesses Covered by Critical Illness Insurance
A wide variety of illnesses can appear in a critical illness insurance policy. The illnesses range from paralyzing conditions to fatal conditions. Examples of some of the illnesses that would appear in a critical illness policy are Alzheimer’s disease, blindness, multiple sclerosis, Parkinson’s disease and regular paralysis. Some of the other diseases that may appear in the critical illness policy are diseases such as HIV/AIDS and cancer. A policy may cover an organ transplant as well since organ transplants are high-risk procedures. Any terminal illness could be listed on a provider’s list of eligible illnesses. Finding out which illnesses are on the list is up to the prospective insured person.
How Critical Illness Payouts Work
The payout process may be complex for some policyholders. Most policies ask that an insured person stay alive for a certain amount of days before it will make its payout. A person who dies before that time ends will not be eligible for assistance. The time is called a waiting period. The insured person must live through the waiting period before the insurance policy will be willing to pay the claim. The waiting period may not be long, however. For example, some policies only ask that a person stay well for eight to 14 days before they will pay on a policy.
Most policies will pay out a lump sum to the ill party after the waiting period. Such lump sum payments may be as much as $500,000. The ill party will have to, of course, provide information verifying a medical provider’s diagnosis of a serious illness. The person will have to provide documentation of any treatment that he or she received, as well.
Finding a Reliable Critical Illness Insurance Policy
Taking one’s time to conduct research is an integral step in finding the right critical insurance policy. Simple issue policies do not require much from the prospective insured party, but fully underwritten policies will require the person to submit personal health information. Persons who smoke cigarettes will automatically have a higher monthly premium because of the increased chances that they will develop a critical disease such as cancer.
An interested party can use a comparison site to find the best deals on critical illness insurance. Comparison sites display products neatly next to each other so that prospective customers can choose policies that are most affordable to them. They display information such as an estimated monthly premium and payout amount. Some comparison sites may have consumer reviews on them so that prospective customers can see other people’s experiences. Comparison sites will lead a prospective person to a reliable specialist who can discuss his or options, as well. Critical insurance is an important piece of coverage to have. Therefore, every consumer should consider obtaining a policy.
