What Illnesses are Covered by Critical Illness Insurance?

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Are you considering buying a critical illness insurance policy? Do you want to know the types of illnesses covered by critical illness insurance? Do not stress out; everything you need to know about the illnesses that are covered by critical illness insurance is discussed here.

The number of illnesses covered by a critical illness insurance policy differs from one insurer to another. However, the state of critical illnesses do not change; you only need to look for the insurer that offers coverage for the type of illnesses you have a high-risk factor for, or you are most susceptible to have.

What Are Critical Illnesses?

Critical illnesses are life-threatening conditions. These conditions can result in permanent disability or death. Besides, treating critical illnesses requires a lump sum, which is usually more expensive than what an individual can afford in most cases. As a result, there is a need for critical illness insurance.

What Is Critical Illness Insurance?

Critical illness insurance is a type of health insurance that caters to the treatment of an insured person through the provision of a lump sum required for the treatment. It should be noted that money for the treatment is provided by the insurance company only if the illness being experienced by the insured is covered by the policy.

Critical illness insurance caters to the unexpected burden by standing in the middle between Life insurance that is paid to beneficiaries upon death, and Disability Insurance that covers lost wages resulting from an on-the-job accident or illness. Critical illness insurance pays for the treatment of the insured persons when they have the illnesses covered by the policy.

The sum provided by critical illness insurance is usually tax-free, and it ranges from $25,000 to $1 million. The lump sum is paid after diagnosis and a waiting period of up to 30 days in most cases. The payout from critical illness insurance can be used for:

  1. Non-government covered or out-of-country treatments
  2. Specialized medical treatment
  3. Private care
  4. Payments for business loans, mortgage, and other debts

What Illnesses are Covered by Critical Illness Insurance?

Critical illnesses covered by one insurer are different from another. Meanwhile, the illnesses covered may include the following:

  1. Heart attack
  2. Stroke
  3. Cancer
  4. Alzheimer’s
  5. Blindness
  6. Kidney failure
  7. Multiple sclerosis
  8. Major organ transplants
  9. Paralysis etc.

It is, however, important to discuss with your insurer for illnesses you are likely to be susceptible to due to your family health history. Note that you cannot purchase coverage for a pre-existing condition or illness.


Donald Phillips