Critical illness insurance is a special type of insurance specifically to cover illnesses that are labeled as critical. Its purpose is to help those with serious conditions cover the treatment for that condition. You likely already know that a serious illness can be a huge financial burden on an individual or family. Even with traditional health insurance, they might not be able to cover all of their costs. Critical illness insurance makes up the difference.
Some of the most common illnesses covered by this type of insurance include:
- Angioplasty
- Paralysis
- Organ transplants
- Kidney failure
- Coronary bypass surgery
Not only do these illnesses often require a huge amount of money to treat, they can also incapacitate a person, making it impossible for them to return to work, even after treatment is complete. The purpose of critical illness insurance is to provide cash to those who would need it at the time in their life that they would need it the most.
Researchers found that more than half of people who filed for bankruptcy over the course of a year did so because they were struggling with a serious illness that put a large financial burden on their household. Conditions like cancer, congestive heart failure, paralysis, and organ transplants are becoming more and more common, and many of the people who have to pay for treatment find their insurance inadequate to cover the costs.
What types of illnesses are covered will vary slightly from plan to plan. Insurance companies may offer separate plans for separate illnesses or may have blanket coverage that covers only a specific list of critical illnesses.
