Critical Illness

Types of Critical Illness Insurance Policies

Critical illness insurance has long been available and popular in Europe and Canada. It’s just now that it has emerged as a potent risk management and financial planning tool in the United States.

There are different kinds of critical illness insurance policies. As you shop for a critical illness policy, you will have to choose the coverage that would work best for you according to different factors and situations. Start by considering your probability of developing a serious medical condition, such as cancer, heart disease or diabetes. Does this run in your family?

Next, consider your ability to pay for the expenses that you would incur if you needed critical care from a major medical illness. Even if you have health insurance, you’ll still be responsible for much of the costs. Out-of-pocket expenses like deductibles, co-insurance and co-payment requirements can quickly add up. In addition, don’t overlook the loss of income from not being able to work… and how that will affect your family’s savings and ability to pay their daily expenses.

After considering the huge potential cost of a critical illness, even with major medical health insurance, more and more Americans are turning to critical illness insurance to provide added security and flexibility.

So which policy and provider is right for you?

Some critical illness insurance companies offer different bundles of services within their policies. For instance, you may get a critical illness plan which covers cancer and other related medical conditions. Another policy type may provide medical assistance for kidney failure, organ transplants and burns. A third category may provide assistance to clients who develop heart-related conditions.

How does this kind of insurance policy work? For instance, if you get a policy which has different categories, you would only get a corresponding percentage for when you develop an illness that falls into a category.

If you develop cancer, 25 percent of your benefits may go to that condition, and the remaining 75 for the other categories that you selected. Of course, this may not be strictly the case. There are provisions for you to be able to maximize your insurance policy coverage for whatever medical condition you develop.

The limit of a critical illness insurance policy usually ranges from $10,000 to a million dollars. For you to be able to determine which kind of insurance policy you can get, depending on your income and ability to finance an insurance policy.

You should then take a look at the waiting period of your insurance policy. This is also known as the elimination period, or the time that you have to wait before you are able to receive the payment from the insurance company. The waiting time would usually start from the time that your diagnosis is given.

Before you buy your critical illness insurance policy, make sure that you are well aware of the limitations and exclusions of the policy that you purchased. Usually, an insurance policy would exclude medical conditions that are diagnosed during the elimination period of your policy. Suicide and self-inflicted injury would also be ruled out by your insurance company. Depending on the policy, pre-malignant conditions, most skin cancers and angioplasty may not be considered a covered illness.

Finding the right insurance plans to help your family handle medical emergencies and prepare for the future can be difficult and confusing. The good news is that you’re not alone. At Critical illness Policies, we can help you explore your best options and tailor a plan to meet your needs. Call us now at 1-561-210-5822 and speak to our experienced and helpful agents to get the answers you deserve.