Critical Illness Insurance

Critical Illness Insurance Policies

Chicago Insurance Advisors

Critical illness insurance is coverage that protects you against the possibility of contracting a life-threatening disease. Employers often offer this type of coverage in their benefits packages.

Who Can Purchase Critical Illness Coverage?

If your employer does not provide you with this coverage, you may wish to consider purchasing it if you would experience a great financial hardship upon being diagnosed with a serious illness. Many Americans made the decision to file for bankruptcy after they became sick and were forced to take a leave of absence from their jobs. In contrast, those who purchase critical illness coverage will have a sum of money to help them make ends meet during a time of illness, so they can protect their savings and keep from falling into debt. 

How Does It Work?

When you apply for coverage, your agent will gather the following data: 

  • Age
  • Gender
  • Health information
  • Whether or not you smoke

Then, the underwriter will be able to set the premiums you will need to pay each month to keep the policy active. If you need a heart transplant, for example, you will contact your insurance company to let your agent know. Then, you will receive your payment tax-free. Insurance companies require a specified amount of time to pass called the "survival period" before payment can be made. In some cases, the policy will pay out every time you are diagnosed with a new critical ailment.

The Different Types of Coverage

Simplified Issue Individual Protection - These policies are relatively inexpensive and do not require that the applicant answer very many health-related questions.

Fully Underwritten Individual Plans - These plans provide the insured with higher payments, but applicants must answer several medical questions before they can qualify.

Employee Benefit Plans - Generally, these are paid entirely by the employer in a benefits package.

The Major Benefits

In the event that you are diagnosed with a serious illness such as cancer, stroke or heart attack, you will receive your money in cash, and you can use it to do any or all of the following: 

  • Pay medical bills
  • Pay for transportation to and from medical appointments
  • Pay for experimental treatments
  • Pay the monthly bills

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