Critical Illness Insurance – How to Protect Yourself

Critical Illness Insurance is an insurance policy in which the insured will generally make a lump sum payment if they suffer a debilitating illness. The majority of these policies are offered by either private companies or the Federal Government under the Health Insurance Portability and Accountability Act (HIPAA). The insured needs to have an existing medical condition before they can obtain these benefits.

It is important for an individual to read over the terms and conditions of any critical illness policy they decide on and make sure that they are aware of any deductibles, co-pays, and other coverage limits they will be required to pay. This insurance is a great way for individuals to protect their family from financial burdens. If the insured suffers a critical illness, such as a debilitating disease, or is diagnosed with an illness that is not immediately life threatening, they can be compensated for financial losses incurred as a result of such an illness.

There are many types of critical illness. It includes; heart failure, diabetes, Alzheimer’s, pneumonia, cancer, and congestive heart failure. In some cases, critical illness could include an accident that could have been prevented, or a condition that could have been remedied prior to becoming fatal. The policy would also protect the insured from being denied a claim for an illness or injury due to pre-existing medical conditions. Critical Illness Insurance pays out money based on the severity of the illness or injury.

Critical Illness Insurance can be purchased in two different forms. Individual Critical Illness Insurance will pay a predetermined amount to the insured for every month or year, based on their health status. Family Critical Illness Insurance will pay the insured family an amount determined by a health care provider or the health insurance provider, depending on the individual’s medical history.

When purchasing a Critical Illness Insurance policy, it is important to research the different types of critical illnesses that are covered. The policy should clearly describe any conditions that are excluded. For example, if the policy states that it will pay for the cost of chemotherapy but states that the insured cannot use certain drugs or undergo certain treatment methods, then the policy would be useless and void. It would be wise to ask any insurance agent or broker that you are thinking about purchasing this policy from about the exclusions and benefits that would be covered under the policy.

If an individual is diagnosed with a debilitating illness or becomes extremely ill, it may be in their best interest to purchase a critical illness insurance policy. Although there are costs associated with purchasing one of these policies, they can be well worth it in the end when they need them most.

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