Loading

Do you know cardiovascular diseases are one of the major causes of death worldwide? According to reports, more than 30% of all deaths globally are linked to cardiovascular diseases and 85% of these deaths are due to heart attack and stroke. Health conditions like stroke and cancer have become widespread. All these severe health issues not only cause mental anguish and physical pain but also put a strain on an individual’s financial health. It is found that more than 65% of all bankruptcies in the United States are due to exorbitant medical bills. If you know somebody who recently suffered cancer or heart attack then you possibly know how much it costs to treat these serious health conditions.

When in hospital, medical bills can quickly get too high. It is not easy for an average-earning individual to afford treatment at the best hospitals. Even with a health insurance plan, covering the deductibles could leave you with no savings. Things get even more complicated when your savings exhaust and you’re left with no money. To avoid this serious financial crisis, many people take critical illness insurance. If you have never heard about this insurance plan, this guide can help you understand what it is and why it is important. So, let’s find out!

Meaning of Critical Illness Insurance

Since treating serious diseases and health conditions like cancer, heart attack or stroke comes with insurmountable medical bills, in 1966 critical illness insurance was introduced. This type of health insurance plan is for a medical emergency that could cost a significant amount of money. You may think that you have complete protection with a standard health insurance plan. However, treating life-threatening illnesses needs an exorbitant amount of money. The cost of treating these serious diseases is much more than any plan will cover.

A critical illness insurance plan is a policy that covers serious life-threatening health conditions. Once the insured person is diagnosed with an illness covered under the plan, the insurance company pays the insured a lump sum amount of money. Diseases that are usually covered in critical illness plans are cancer, heart attack, organ transplant, stroke, renal failure, paralysis, and more. To get the medical cover, the diagnosed condition must be included in the policy. The tax-free, lump-sum amount received can be used for paying medical bills, surgery, as well as mortgage, rent, and other needs. We all pray to be lucky enough to never have to use critical illness insurance. However, in the age of COVID-19, it makes sense to prepare for life’s uncertainties. It is important to be financially secure to ensure that money doesn’t stand between your health and top-quality treatment. If you’re still confused about this type of health insurance, then read further to learn more about critical illness insurance and how it works.

Why Do You Need Critical Illness Insurance?

Critical illness covers diseases mentioned in the policy and only pays out once. The policy offered by different insurers often lists different health conditions. However, some common critical illnesses covered in most plans include stroke, heart attack, traumatic head injury, certain types and stages of cancer, organ transplant, Alzheimer’s disease, and more. This policy doesn’t include all types of diseases. For example hypertension and non-invasive cancers are usually excluded from the plan. You should consider taking critical illness insurance if you’re the sole earning member in the family. If your family depends on your income then make sure you’re financially secure. Some people with a family history of cardiovascular diseases or cancer are more at risk of facing critical illness in the future. If you or your family member is at risk of developing a serious disease, then health insurance is something unavoidable. Critical illness insurance is also for those who don’t have enough savings for a medical emergency. The health insurance provided by the employer isn’t enough. Moreover, often employee benefits packages don’t cover extended days off work due to illness.

There are many benefits of taking critical illness insurance. This policy pays a direct lump-sum amount and covers expenses not covered by other insurance. This one-time payment can be used for paying treatment costs, daily living expenses, transportation expenses, and other bills so that you can focus on getting well instead of worrying about paying the bills.