The Usefulness of Critical Illness Insurance

Critical illness insurance covers specific illnesses. In most cases, a policy of this sort will cover cancer, Alzheimer’s disease, heart attacks, and severe burns. But the illnesses covered will vary depending on the insurance company.


The insurance company might pay a lump sum to the policyholder. But in some cases the policyholder may receive a monthly payout or payment before a major surgery. If you are considering this type of policy, keep in mind that there is an average policy waiting period. You must survive for at least 14-days after being diagnosed. If you survive, then the policy will start paying benefits. You might find that your employer includes this insurance in a benefits package.

How It Works

You will have to pay a premium and a deductible, but the cost depends on several risk factors. Common risk factors include age, smoking, current health, and medical history.
Not all critical illness policies cover the same illnesses. Some cancers or heart conditions might be excluded. And some plans require that the illness be something that is permanent.


This insurance covers medical costs for treating a major disease after the diagnosis. You must get the policy before you are diagnosed. If you apply after being diagnosed, then it’s likely your application will be refused. The conditions of the diagnosis vary with each policy. Specific tests might be necessary or you might have to get a specific specialist to make the diagnosis. The main benefit of critical illness insurance is you will have coverage to receive early treatments. You can get help paying for hospitalizations and medications.