A critical illness insurance policy is an insurance product wherein the policyholder is provider a lump sum of money defined in the contract under certain circumstance where the person is diagnosed with a critical illness that is also clearly stated in the policy. In certain cases, the policy can be made up in such a way that it ensures a regular monthly payment to the policyholder. Certain surgical procedures are also considered under this insurance coverage.
Life Insurance policies are offering Critical Illness riders which will pay anywhere from $5,000 to $100,000 upon first diagnosis of a critical illness. Some of these life insurance riders will pay you this benefit up to 3 times over the term of the life insurance policy.
It is usually less expensive to buy a critical illness rider on a life insurance term policy that if you purchase a critical illness stand alone policy. If you buy the rider, you also will get the added death benefit on a life policy in additional to a tax free benefit to your beneficiaries.
Some insurance may state that the policyholder is required to be alive for a minimum period of time after the diagnosis of the illness before the insurance payments will be made. This period is known as the survival period. Though this period varies form company to company, in most cases, it is fixed from 28 to 30 days.
The critical illness insurance is also known as the crisis cash, living assurance or the serious illness insurance.
The main illnesses for which this insurance provides coverage may differ from one insurance company to another.
If you liked this article and also you would like to get more info with regards to Pflegeversicherung Kassel please visit our web site.
But 4 main illnesses that are covered under this policy were defined in 1983 and they are namely coronary artery by-pass surgery, cancer, heart attack and stroke. Eventually, many other health conditions were added to this definition such as the Alzheimer’s disease, kidney failure, major organ transplant, blindness, multiple sclerosis, deafness, Parkinson’s disease, paralysis of limbs, terminal illness, HIV or Aids contacted through blood transfusion etc.
The number of diseases or illnesses that are covered under the critical illness insurance is constantly changing and the amount of insurance policy being provided for a particular disease may change from time to time, depending upon the number of diagnosis being made and the treatment available for the disease. This means that coverage for diseases that seemed important years ago may not be that much in demand today and illnesses that are covered today might not need that much insurance coverage tomorrow. It is expected that diseases such as rheumatoid arthritis and diabetes might enjoy greater insurance coverage in the future.
Requirement For Critical Illness Insurance
The critical illness insurance was initially offered due to the requirement of safeguarding the financial conditions of people who are unfortunately struck by illness that were deemed critical after treatment or diagnosis was made.
The finances received from the payment of the insurance can be used for paying off treatment bills and costs, used as aid for recuperation, repayment of debts, make up for lost income incurred due to inability to earn following the illness, or even to help change the lifestyle of the person once the illness diagnosis has been made.