Many cases of bankruptcies filed in the United States each year are due to cost associated with a prolonged illness. Financial burdens can be reduced and even eliminated when insurance policies cover unexpected costs. Critical care insurance can help the insured with expenses not covered under traditional insurance because of the plan's structure.
What is Critical Care Insurance?
Critical Care Insurance is also known as critical illness insurance. This is a policy that pays out a lump sum of cash to the insured upon receiving a diagnosis of a listed critical illness. The cash amount is paid directly to the insured in one payment.
What is Covered?
Critical care insurance covers a variety of illnesses and conditions that affect daily living. Some incidences typically covered by critical care insurance is care associated with a heart attack, heart surgery, many types of cancer, stroke, brain tumor, kidney failure, organ transplant, multiple sclerosis, paralysis, HIV/AIDS, Alzheimer's, Parkinson's, severe burns, blindness, and dismemberment. Each company has exclusions and additional coverage options available to clients. Benefits are paid regardless of other insurances the patient may have.
How Does Critical Care Insurance Protect the Insured?
Critical care insurance protects individuals by providing funds directly to the insured. The insured can decide how to utilize the funds to help pay expenses. These expenses can be direct medical, or they may be indirect costs such as travel, utilities and food. Critical care insurance typically offers flexible options to allow the consumer to select an appropriate plan for his or her situation.
Critical Care Insurance Variables
Critical care insurance can be purchased as a rider to a life insurance policy or a disability income policy. The full value is not paid if the insured party dies within 30 days of being diagnosed with a covered illness. There is a 90 day waiting period before insurance takes effect. The underwriting process for critical care insurance considers such characteristics as age, tobacco usage, body mass, gender, family history, alcohol consumption, and past medical history when calculating the premiums. There is an increased emphasis on smoking, body mass and family history. Critical care insurers view these as indicators of critical illness.
Who Purchases Critical Care Insurance?
Critical care insurance is a well established form of insurance in the United Kingdom, South Africa, Ireland, Australia, and New Zealand. This type of insurance is increasing in popularity in the United States and in the Far East.
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