How Does Critical Illness Insurance Work?

Critical illness insurance is also known as catastrophic illness insurance. This type of insurance is in place to protect you from being completely financially ruined if you get hit with a major, life-changing health event. Here’s some more information on this type of illness including why you might want to get it.

Introduction to Critical Illness Insurance

It’s often not commonly known that most standard health insurance plans don’t actually necessarily protect against major health emergencies like getting cancer or a heart attack. The cost of treating life-threatening illnesses is often much higher than normal, including being higher than what you can often cover with your regular health insurance.

As a result, critical illness insurance is designed to help you make up the difference. You can get cash to pay for it when your traditional insurance runs out and you would have to pay out of pocket otherwise. The advantage here is that critical illness insurance is often fairly cheap.

Often they help cover huge procedures like a coronary bypass or getting an organ transplant. Even the best regular insurance will often not cover something extraordinary like this. Critical illness insurance will help you cover the extra in case this does happen without being a major burden on you in the meantime.

In general, you’ll get a lump sum of money to cover the costs should they suddenly be necessary using this type of insurance. It’s worth noting that not all critical illness insurance is created the same. There may be a lot of variation in what they cover and what they don’t.


There are often exceptions in all kinds of insurance may be that certain types of critical health insurance options don’t cover certain kinds of cancer, for example. It’s also possible that some long-term chronic disease won’t pay out either. You may not get more money if your cancer goes into remission and then comes back, for example. Coverage could be restricted by age.

That’s why it’s even more important to carefully read the fine print when it comes to critical health insurance than it is with other plans. That way, you can find the best plan for you.

Making the Choice

There are a lot of good reasons to consider this type of insurance. For one thing, you may be able to receive it from your employer or even choose it as an option. It can also be an excellent choice if you have a plan now that has a high deductible for certain conditions.

The plan is often a good way to deal with any kind of gaps in your current coverage that you may be worried about. Your traditional policy will have some things it doesn’t cover, for example. Traditional policies also sometimes lack expenses related to getting to and from places to get treated in terms of transportation.

If a patient is terminally ill, the lump payout can be used for just about anything during the rest of their life. They can get a special place to relax or even use the money on spending time with their family while they can.

For more information about critical health insurance as well as many other kinds, please don’t hesitate to go ahead and contact us today. The quicker you contact us, the quicker we can show you insurance package plans that will meet your needs, including critical health insurance.

Our agents know how to offer you what fits, and critical health insurance is often an excellent way to ease your mind if there is something you are worried about as you age based on your history.

Healthcare Solutions Team is a wholly owned subsidiary of the National General Insurance Group and the Allstate Insurance Company.