Illnesses can strike at any age. Whether you have a family history of a disease or are healthy, critical illness (CI) coverage is one of the best protections you can have against economic calamity. CI coverage applies to life-threatening illnesses or events, and can help you and your family when you really need it.
CI coverage is a long-term insurance product that provides a layer of protection not offered by your health or life insurance; it provides a lump sum if you are diagnosed with any of the medical problems listed in the policy.
CI coverage can help bridge the financial gap between what your health insurer pays on your medical bills and your copayments. It also provides a cushion if you lose income due to your illness. Younger individuals, in particular, can have the security that mortgage payments will be paid and the family protected in a life-altering crisis.
The critical illnesses may include Alzheimer’s, stroke, cancer, heart attack, and even organ transplants. However, the coverage-and the diseases covered-varies from insurer to insurer. Your insurance professional will help you select the policy that is best for you, but you should carefully read the policies you’re considering.
Remember that you won’t have coverage for any illness or accident not listed in the policy. If, for example, you break your hip, you may suffer an extended disability, but it’s likely not considered a critical illness.
That said, long-term disability insurance would kick in here, where a critical illness policy may not.