Individual and Family
What is Critical Illness Insurance?
One of the biggest misconceptions about health insurance is that it covers every illness, no matter how big or small. While it does help cover costs for basic medical needs and hospital visits, most health insurance plans will not cover costs for life-threatening illnesses. So if an unfortunate illness like cancer or a stroke occurs, critical illness health insurance will help offset the expenses to prevent financial hardship.
Speak With a Licensed Insurance AgentCall Now (888) 828-5064 TTY 711
What Does Critical Illness Insurance Cover?
Unlike traditional ACA health insurance, critical illness health insurance pays a lump sum directly to the policyholder after the diagnosis of a covered condition. The payment can be used to pay for expensive and experimental treatments not covered by regular health insurance and cover living expenses during recovery.
Critical illness insurance covers conditions that vary by policy but often include major health events such as heart attacks, strokes, cancer, organ transplants, and kidney failure. This type of supplemental insurance provides financial support when the policyholder may be unable to work or face significant out-of-pocket expenses related to their illness. This can help alleviate financial stress and allow the insured to focus on recovery without worrying about the potential financial harm that can accompany a serious health crisis.
Is There a Waiting Period for Critical Illness Insurance?
Yes, the waiting period may vary depending on the policy, but the period involving critical illness insurance is generally between 30 and 90 days. Also known as the survival or qualifying period, this specified timeframe must elapse between the diagnosis of a covered critical illness and the insurance benefit payment. Unfortunately, if the policyholder passes away during this waiting period, the critical illness benefit is usually not paid out.
What Is the Difference Between Critical Illness Insurance and Health Insurance?
While the premise of covering medical-related expenses is the same, critical illness insurance and health insurance are two distinct types of coverage that serve different purposes. Basic health insurance is designed to cover medical expenses incurred during treatment, such as doctor visits, hospital stays, medications, and various medical procedures. It typically involves co-pays, deductibles, and maximum out-of-pocket limits; payments are usually made directly to healthcare providers.
Critical illness health insurance provides lump sum payments directly to the policyholder upon diagnosis of specific severe illnesses or conditions covered by the policy. This payment is not tied to medical expenses. It can be used at the discretion of the insured for any purpose, such as covering lost income, paying for expensive treatments not covered by regular health insurance, or managing other financial obligations during recovery. While health insurance for individuals and families is comprehensive and covers a range of medical needs, critical illness insurance focuses on a limited set of severe conditions.
What Age Does Critical Illness Insurance End?
Like any insurance policy, there are limitations when coverage ends. The ending age for critical illness insurance will vary depending on the policy terms and insurance provider. Generally, most policies are written to provide coverage until the policyholder reaches 65 or 75, as older age has more risk for life-threatening illnesses. Some policies may also have a maximum term length, such as 20 or 30 years, regardless of the policyholder’s age at the time of purchase. Even for policies with a set end age, the coverage for certain conditions might change or be reduced as the policyholder ages.
Access Critical Illness Health Insurance From HealthPlusLife
Medical debt in the U.S. accounts for 40% of personal bankruptcy, with people owing at least $220 billion in debt, according to KFF and the National Library of Medicine. Everyone knows the value of having basic medical health insurance, but many people don’t know the benefits of supplemental insurance policies like critical illness health insurance. HealthPlusLife aims to educate consumers on the various types of health and life insurance policies available so they can make informed decisions. For more information on buying health insurance plans that cover all your needs, please call HealthPlusLife at 888-828-5064, TTY 711, today.