Credit portal




How Does Critical Illness Insurance Work?

Posted Jul 18, 2013

It’s likely you’ve heard about critical illness insurance, especially if you read this blog. But you may still have questions about how it works. The answers are fairly simple and straightforward.

Here’s a quick rundown of some frequently asked questions about how critical illness insurance works and answers to help you better understand this type of coverage, especially as you determine what type of health insurance plans are right for you .

What does critical illness insurance do?

Critical illness plans provide supplemental coverage, which means they are not major medical insurance. They are not subject to a copay or deductible; however, their benefits may be used to help pay your health insurance plan’s copay and deductible—but more on that a little later. These policies are intended to provide additional financial relief in specific situations.

How are benefits paid?

Upon diagnoses of certain critical illnesses, which are listed in the policy and may include stroke, cancer, heart attack, coma, paralysis and severe burn, a lump-sum cash benefit is paid to the insured person.

How can payments be used?

The funds paid to you can be used for virtually anything. As stated above, they can be applied toward your health insurance deductible or copay. The cash may also be used for other medical costs not covered by your major medical plan, medical specialists, specialty drugs, transportation to and from appointments, childcare, car payments, household expenses, etc.

The cash benefit paid may truly be applied to any expense?

Yes. It is yours

to use based on your individual needs. Critical illnesses mean time off work and the rapid accrual of unexpected expenses. Critical illness plans are meant to help relieve financial strain. The plans are available through Health eDeals have benefit options ranging from $10,000 to $50,000. Plan rates will by applicant and the coverage he or sheselects.

What if I am diagnosed with multiple conditions?

Many critical illness plans offer a multiple payment benefit, which allow the insured person to make claims and receive benefits in more than one critical illness category.

We are living longer these days. According to preliminary data from a 2011 CDC National Vital Statistics Report, the life expectancy for the total population is 78.7 years. People survive serious medical situations at higher rates than in the past. While this is something to be grateful for, it also means we need to plan ahead to make sure our health and finances are protected. Read “Nearing Retirement? How Buying Critical Illness Insurance May Protect

Contact a Health eDeals sales consultant or your insurance agent to discuss plan specifics and how critical illness coverage may benefit you and your family.

Information on this blog is a free courtesy of The IHC Group.

Jenifer Dorsey is a freelance writer whose specialties include health and fitness, wellness, sports and recreation. She is a competitive amateur track cyclist who also enjoys mountain biking, hiking, camping and other outdoor adventure. Jenifer received a B.A. in journalism from Columbia College Chicago and is an MFA candidate at Naropa University. She lives in Colorado.

Category: Insurance

Similar articles: