Critical illness insurance is extra medical insurance sometimes offered by employees. Policyholders receive a lump sum of cash should they happen to contract or develop a critical illness.
Critical illness can strike without warning. The high degree of unpredictability makes this type of insurance suitable for anyone who believes they are likely to contract a critical illness. Covered illnesses include cancer, heart attack, and stroke. Some policies cover additional situations including paralysis and kidney failure. A policy might even cover part of the cost of surgery for a heart transplant, angioplasty or coronary bypass surgery. One catch is that some policies require a survival period of 8-14 days before they will pay money.
Critical illness insurance became available because of the high number of Americans going bankrupt because of high medical costs. Basic insurance does not cover many of the costs associated with contracting a critical disease. Some families have been forced to file bankruptcy to dig out of heavy debt. Bills don’t stop just because a person is sick. Critical illness insurance makes things a bit easier.
The major benefit of this insurance is the help it provides in paying bills during recovery. Heart disease and cancer often run in families, which means critical illness insurance can be useful.