Who Needs Critical Illness Insurance

​You will receive a lump sum of money if you have a covered illness under critical illness insurance. You can use this payout to pay for medical expenses, for mortgage payments, for vacation expenses during the recovery period, or for other uses. 

Critical illness insurance is a supplement to your health insurance. It helps you pay for costs that are not covered by your health insurance, for example, out-of-network doctor fees.

What does CII cover?
Every policy of critical illness insurance refers to three categories of diseases that it will payout. You may qualify to obtain the benefit if your health condition does not belong in any of the categories. Also, if the condition is not severe or life-threatening, you may only receive a partial benefit, about 25% of the total amount of the benefit. Critical illness insurance covers these categories:

Heart Conditions. This category includes stroke and heart attack with a full benefit amount, while coronary artery disease with a partial benefit. In some situations, you will not receive a payout unless you not dead after a specified number of days. For example, your insurance company will require you to wait for a month before paying the benefit for stroke. 

Cancer. It is one of the diseases that you can receive the full amount of benefits. However,  cancer must be life-threatening. For some types of cancer that are less serious such as malignant tumors in situ, you may only receive a partial payment. If you have skin cancer, you may likely receive less than a 3% payout. Also, if cancer and its symptoms are caught early, you may not receive any benefit whatsoever. 

Organ damage. This category includes complications brought about by kidney failure and a major organ transplant. Insurers normally give a full benefit amount to these complications. Note that it excludes bone marrow. 

As you age, your premium for critical illness insurance increases. If you reach a certain age such as 65 years old, the insurance company will cut the benefit amount in half. This process is called an age reduction schedule. When you reach 70 -75 years old, most critical illness insurance policies expire. 

Talk to your insurance agent regarding critical illness insurance and find out if it is suitable for your case. 

At AmeriFed Insurance & Financial Services, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (813) 848-9787. Get your free quote today by CLICKING HERE.