Critical Illness

What is Critical Illness Insurance?

Critical Illness (CI) insurance is a type of insurance that is meant to protect and help policyholders cover their expense that result from getting a critical illness. A critical illness is generally defined as an illness that is potentially life threatening or that is debilitating for a period of time. This includes illnesses like kidney failure, major organ transplants, cancer, heart attacks, and many more.

CI insurance is often offered by employers for purchase by employees, much like dental and health policies are. Employees can be directly billed for premium payments or they can have a payroll deduction when they get paid. This type of insurance was not considered necessary to be offered by employers until the late 1990s, when medical costs started to rise and many people were becoming bankrupt due to these illnesses. Now it is a staple of a great health benefits plan provided by many employers.

Who is CI for and How Does it Work?

CI is meant to be used by any person on the insurance policy suffering from the illnesses listed above. The policy works much like any other type of insurance policy would. Once you are diagnosed with a critical illness, your insurance will kick in to help you cover any eligible costs as determined by your policy.

Which Costs Are Covered by CI?

There are several costs covered by this insurance that most policies consider eligible. These policies can provide payments for medical treatments that are not covered by your health insurance plan. They also help with some living expenses that you may not be able to pay while you are recovering from your illness, such as electric bills, mortgage payments, and even your insurance premiums. Other costs, such as travel expenses to get treatment, may be covered by your policy. Policies even allow for replacement of a spouse’s income while they are caring for the policyholder after a critical illness.

What Are the Major Benefits of CI Insurance?

Besides the expense reductions provided by this insurance, CI insurance can really help policyholders find peace of mind in a world seeing increased medical expenses. Now policyholders know that they will be taken care of by their CI insurance.