There is a gap in Insurance coverage when a person suffers certain critical illnesses. Their medical expenses could be covered, but they are now ill and unable to work. Critical Illness Insurance fills this gap.
Critical Illness Insurance pays a lump sum cash payment when a person is diagnosed with a covered critical illness and survives a set period of time. The survival period is not a long time, but rather is usually from two weeks to a month. Serious heart attacks, invasive cancers, and strokes are common critical illnesses that are covered by the Critical Illness Insurance policy.
According to one recent study, more people in Canada will suffer a serious critical illness before the age of 75 than will die before that age. This fact illustrates the importance of Critical Illness Insurance as a supplement to Life Insurance and Health Insurance in the overall risk control planning process. While Health Insurance will cover a major portion of the medical expenses incurred in the onset of the illness and even some follow-up care and Life Insurance will provide for the needs of your survivors should you die, it is survival that sometimes causes problems.
A stroke victim, for example, will be unable to work. He may survive for years with a need for in home care and other needs not covered by his Health Insurance. The lump sum cash payout of the Critical Illness Insurance can be used for any purpose at all. This gives the insured the choice of how the funds will be used. They might be used to pay off a mortgage, or provide help with domestic tasks. It could possibly be reinvested in a long term annuity that will provide funds for as long as the insured survives.
The medical conditions that are considered critical and are covered by an individual policy differ from policy to policy. The survival period differs as well. As with all Insurance, it is the responsibility of the purchaser to understand the details of the coverage. Insurance agents are always glad to explain these details and suggest ways to tailor the coverage to your own individual needs.
Critical Illness Insurance has long been a part of the risk management process in the United Kingdom and is starting to grow in popularity in the United States. Improvements in Emergency Medical care and advances in the treatment of many critical illnesses have made survival more and more likely. This trend is expected to continue. A situation is often created whereby a person regrets his survival when he considers the impact on his family. This horrific thought is the driving force behind Critical Illness Insurance and is fueling its increased popularity.
About the author: Get Quotes on
California health insurance plans at UFCAmerica.com.
No comments:
Post a Comment