What is critical illness insurance?

As people live, they might experience sudden critical illness conditions such as cancer, kidney failure, heart attack or other medical conditions.

Insurance companies developed “critical illness insurance” because modern medicine knows how to keep people alive and functioning longer.

In 1983, critical illness insurance was a concept first distributed in South Africa. European companies then began to offer this insurance along with Canada. Now it’s time for the United States to offer such insurance.

Critical insurance usually pays a lump sum to someone who suffers a specific critical illness and manages to survive.

Critical illness insurance is highly important to maintain if you were diagnosed with cancer and have a higher risk of having a heart attack, kidney failure and other serious medical condition. Receiving that large lump sum of money will probably help you pay off with out-of-pocket medical expenses, too.

John Haydukovich of Western Sky Corporation, an insurance agency in Nevada, claims, “The average life expectancy is now longer than 70 years. Most people are not aware of the fact that the average age for a critical illness is 43. How many people do you know who have suffered and survived a heart attack, stroke, terminal illness, cancer, organ transplant, paralysis and other critical illnesses? Who will pay the mortgage? What kind of lifestyle will you have to adjust to? Wouldn’t you rather get a $100,000 check than a get well card? Critical illness insurance provides a lump sum payment of immediate funds when the insured experiences a critical illness covered under the policy contract.”

You don’t have to be disabled to collect with critical illness insurance. You also don’t have to be employed, as you do to collect disability insurance. The lump sum that you are going to be receiving can be spent by you in whatever way you prefer.

Almost all of critical illness insurance policies require you to be affected by the illness or disease after a waiting period of 30 days. You will receive the benefits only after the waiting period is through. If you do not survive those 30 days, or if you do not show signs of the illness, the benefits won’t be paid.

The money is usually spent on medical expenses, mortgage payments or to make up the money that you didn’t receive while unemployed.

Whatever you choose to spend this lump sum of cash on, $100,000 never hurt anyone. The amount of money that you are going to receive will depend on your policy.

Regardless of your health insurance, insurers will generally pay out on a critical illness policy.