Serious diseases such as cancer, heart failure, diabetes, etc.
, infect most people during their retirement years.
These conditions can create huge expense, some or much of which isn't covered by their ordinary health and disability insurance.
Fortunately, some insurance companies have innovated to plans that cover critical illness.
The purpose of these plans is to supplement the patient's regular medical policy with additional benefits.
Most of the policies available pay out when the insured has been diagnosed to having a certain critical illness.
Some of the companies limit their coverage to only certain, specific conditions.
These will be listed in the policy.
Cancer, heart attack, kidney failure, major organ transplant, stroke and multiple sclerosis are prominent conditions that are covered.
Benefits are typically paid out at the time the diagnosis is certified, as a lump sum.
The insured can spend the money any way he sees fit, whether it's paying toward the medical expenses or making mortgage payments.
Some will use the lump sum to hire a caregiver or even take a vacation, if that's their priority.
Of course, not all 'critical illness' is covered and there will be qualifications for each one that is.
For example, cancer will usually be covered but it may have to be considered 'life-threatening'.
Some policies will require, in order to qualify for benefits, that it be malignant and growing outside of its area of origin, affecting normal tissue.
There will also be some exceptions for heart problems, and what is considered 'critical' here should be spelled out in the contract.
Something like angina would most likely not be covered but an M.
I.
(myocardial infarction) probably would, as long as the heart has received permanent tissue death and scarring.
Some policies require a blockage of the blood supply to the heart to rate it as critical.
It sounds pretty critical to me! The increase in claims and the spiraling cost of medical procedures has led most insurers to cut down on the conditions they cover or impose many restrictions in considering an illness to be critical.
Some companies offer various plans, including 'premium' plans that cover more but also cost more to buy.
Other, typical diseases listed in a policy to cover critical illness might include the following: · Stroke (when a blood vessel ruptures or a blood clot forms in the brain) · Alzheimer's Disease (patient must be diagnosed with advanced Alzheimer's and require permanent daily supervision) · Major Organ Transplant (patient must exhibit clinical evidence of major organ failure) Policies will also usually cover blindness, deafness, Multiple Sclerosis, paralysis and kidney failure.
For someone having any of these conditions, medical technology is great but so is the expense.
Most regular insurances don't cover everything, and a policy made to cover critical illness can be a real life-saver, literally.