What is Critical Illness Insurance and how does it relate to Workplace Benefits (offered by employers)
This supplementary insurance program provides additional benefits that health insurance does not cover. The company pays a lump-sum, tax-free amount to his or her employee, if they acquire one of the critical illnesses that the policy lists. Three primary disorders include; cancer, heart attack, and stroke. This critical illness program recognizes other conditions; heart and major organ transplants, coronary bypass surgery, angioplasty, and paralysis. Workers Compensation pays for an employee’s workplace injury or illness. Individual states regulate this coverage, which is often a state requirement. Health Insurance provided through employment helps employees pay for medical expenses that are not work related.
Who Can Benefit?
Most people have insurance but can’t pay the escalating costs of a catastrophic illness, severe injury, or long-term period of recovery and subsequent loss of income. Anyone with a family history of a serious disease or illness is at risk for acquiring that same critical illness. Overwhelming medical bills force many Americans to file for bankruptcy.
How Does It Work?
The policy stipulates the various conditions it covers and the criteria required to receive the benefits. As soon as the policyholder successfully meets these requirements, the insurer will issue a payment. Policies typically specify a 14-day survival period, starting with the first day of diagnosis from a specialist in that medical area.
Different Types of Coverage
Critical illness insurance can pay hospitals directly. Another alternative allows policyholders to choose where they prefer to receive treatment from a pre-selected group of hospitals. Sometimes policies offer employees the option to travel to highly specialized hospitals in other countries to receive treatment. Employees who remain healthy through prudent lifestyle choices are eligible to receive lump-sum payments.
Cash used for specific expenses.
1. Medical treatments that health insurance does not cover.
2. Mortgage payments during recovery.
3. Monthly bills
4. Travel for treatments not available locally.
5. Experimental procedures (not covered).
6. Replace spouse's income while caring for the insured.