What Does It Take to Cover a Critical Illness

To cover critical illness you need two things. The first is some kind of health or medical insurance that will pay towards hospital and doctor fees. These fees will, in most cases, be significant. However, very few health insurance policies cover ALL of the expenses associated with contracting a serious illness. That’s why nearly everyone should consider obtaining a supplemental coverage that is designed to cover critical illness.

This specific kind of policy is most sought after by older people but any age policyholder is allowed. They will typically pay out a lump sum benefit to an insured who is diagnosed with one of the covered illnesses. Sometimes, instead of a lump sum, the payout will be structured over a certain time period. Most policies of this type will require the patient to survive a designated time period after the diagnosis before a claim can be made. This is typically 28-30 days. This is referred to as the survival period.

There will be terms in every contract that spell out what is considered a critical illness and when a diagnosis is accepted as valid. It may require that the doctor making the determination be a specialist in that field and it may also require that certain tests be performed to confirm the diagnosis. In many insurance company products these terms and requirements have been standardized.

A Doctor Marius Barnard wrote the first critical illness insurance policy on October 6, 1983, in South Africa. It was then called, “dread disease insurance.” Since that time this type of coverage has been offered by insurance companies worldwide. It’s also known by the names serious illness insurance, living assurance and cash crisis. Boy, they got that last one right… for most people, serious illness creates a real cash crisis. That’s why this kind of coverage can be such a lifesaver in one’s time of need. There’s an old saying… “It’s better to have it and not need it than to need it and not have it!” Consider those words of wisdom when looking into this type of coverage.

Not every condition is covered by every policy and this varies from one company to the next. The most comprehensive product on the market covers in excess of 150 illnesses. The least comprehensive only covers 26. When first introduced, the South African policy covered only four areas: cancer, stroke, heart attack and heart by-pass surgery. Coverage has widened significantly. It’s easy to find a list of what’s normally covered in these policies or to find out what any particular company has to offer in this area. The Internet is great for stuff like that. You just have to decide if you think a policy to cover critical illness is worth the cost versus the risk.

George Battles has been articles online for nearly 4 years now. Not only does this author specialize in insurance, you can also check out his latest website on colored toilet seats and snowball microphone