You do your best to stay healthy, but you can't avoid every medical emergency. While some injuries and illnesses are minor, others are much more serious. A heart attack, stroke, or unexpected cancer diagnosis can set you back financially. Critical illness plans help cover what traditional health insurance doesn't. Keep reading to learn how this insurance could save you from financial hardship.
What Is Critical Illness Insurance?
Also known as catastrophic illness insurance, critical illness coverage can pay for leftover costs from major medical events. Unlike traditional insurance, critical illness coverage pays you directly. These are usually lump-sum payments, which you can use to meet your needs:
- Medical costs not paid by regular insurance
- Copays and deductibles
- Daily living expenses
What Does Critical Illness Insurance Cover?
Critical illness coverage is intended for significant medical events. Commonly covered conditions include heart attacks, cancer, organ transplants, and strokes. However, every plan is a little different. You can purchase cancer-only plans, for example, or choose broader insurance covering multiple conditions.
Critical illness plans can ease the financial worries that come with major illnesses. Everyone's insurance needs are unique, and critical illness coverage may not be helpful in your situation. Before you purchase a plan, it's important to do your homework and understand its potential benefits.