What Is Critical Care Insurance?
Critical care insurance is a type of medical insurance that provides protection when a major illness occurs. This type of insurance will pay a lump sum when a covered individual is diagnosed with an illness that is covered by a policy and survives for a specified period. This is known as the survival period before coverage is provided. Typically, the survival period can last anywhere from two weeks to two months depending on what is included on the insurance policy.
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Purpose
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Critical care insurance is a type of health insurance that can fill a gap that exists to cover medical expenses if an individual is sick and cannot work. This insurance will pay for expenses that result from an individual's long-term recovery from an illness. Critical care insurance does not pay for each medical bill but instead provides a payment that can be used any condition that is listed on the policy.
Policy Benefits
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Individuals can receive many benefits from the purchase of a critical care insurance plan. Policy benefits can include having premiums returned or the policy paid up in a specific number of years. Another policy benefit is that coverage can be guaranteed renewable as long as the premium payments are made on time. Payments that are made from the policy are sent directly to the policyholder and are in addition to any other health insurance.
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Covered Conditions
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Critical care insurance policies can provide payments when an individual has received treatment or has been diagnosed with a covered illness. Covered illnesses can include suffering a heart attack, a stroke or kidney failure. Other illnesses that are covered include being diagnosed with cancer, a brain tumor or suffering kidney failure. Payments can also be made after receiving an organ transplant, suffering from paralysis and sustaining severe burns.
Policy Riders
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Individuals who purchase a critical care policy may have the option of adding additional riders to the policy. One is called a paid-up rider. This is when a policy has been in force for a specified period after which an insured no longer needs to make premium payments. Another the return of premium rider. Premiums can be returned to an individual, minus benefit payments, if they are condition-free at the end of a period that is specific in the policy.
Amount of Coverage
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Individuals should determine how much critical care coverage will be needed before purchasing a policy. This can be done by selecting an amount that is equal to wages or income that is received for a one-year period. Coverage amounts can always be changed on a policy if needed.
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