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Critical Illness Insurance

Critical illness insurance is designed to cover any one of the included critical illnesses. These illnesses include cancer, Alzheimer’s disease, heart attacks, severe burns, etc. There are different types of policies that affect how critical illnesses are handled in the medical industry.


In some cases, the insurance company pays a lump sum to the policyholder who receives a diagnosis. Otherwise, the patient may receive a payout every month or before a major surgery is performed. The average policy includes a 14-day survival period, which is the number of days that the policyholder must survive after being diagnosed.

Many employers include this type of insurance in their benefits packages. For other plans, the insurer pays the hospital or healthcare provider directly. The policyholders can choose from a list of hospitals that offer specialized treatments. They also receive money for transportation, nurses and temporary living arrangements.

How It Works

The premium and deductible costs vary based on certain risk factors. The insurance company has a list of common risk factors that include age, smoking, current health conditions and family medical history. Some policyholders have to pay extra fees, while others pay standard rates.

The general list of critical illnesses is not applicable in every policy. Some types of cancers or heart conditions are excluded, while some plans require that permanent symptoms occur.

Plan Benefits

Critical illness insurance covers the costs of treating a major disease after the diagnosis is made. The conditions of the diagnosis vary with each policy. Some insurers require specific tests to be made or require that a medical specialist make the diagnosis.

This plan protects the older populations from developing serious diseases that cause death. They have the money to receive early treatments, which may include hospitalizations and medications. Some people are compensated for lost wages as they recover from surgery or undergo long-term treatment