Filling the Gap with Critical Illness Insurance

April 4, 2024

Heart attack, stroke, cancer – just the words can induce anxiety.

The last thing you want to think about when dealing with an illness is money but, unfortunately, it can quickly move up the list of concerns because a long-term illness can significantly impact personal finances.

What is considered a critical illness?

It’s generally accepted that Critical Illness insurance covers the big three – cancer, heart attack and stroke.

Other commonly covered illnesses include coronary bypass surgery, heart transplant, angioplasty, paralysis, kidney failure and major organ transplant.

However, each policy is different, so be sure to know the details of what’s covered in the one you choose.

Even a comprehensive medical plan can still leave gaps in coverage and a serious illness can create expenses that increase rapidly.

Why critical illness insurance?

Being financially prepared can lessen the burden brought on by an unexpected ailment.

As soon as a covered individual receives a diagnosis, the policy pays out a lump sum that can be used for a number of necessities, such as:

  • Certain medical treatments that may not be covered by your primary medical insurance.
  • Paying your housing costs during your illness and recovery.
  • Utility bills, car payments and any other bills for which you are responsible.
  • Traveling expenses for treatments.
  • Supplementing lost income during the treatment period and recovery.
  • Child care costs.

What you need to know

Understand these factors of Critical Illness insurance to ensure you choose a policy that suits your needs.

  • Benefits are paid directly to you. You don’t have to worry about the money going to a medical provider before it gets to you.
  • You don’t need a medical exam in order to qualify for coverage. Keep in mind that good health can get you a lower premium, but you don’t have to go through a screening process in order to be provided with coverage.
  • There are no waiting periods. Your policy is effective when your coverage begins.
  • The claims process is simple. Once a claim form is filled out for each separate illness, the claims are usually processed within 10 days.

Another important factor is cost. The price for your coverage will depend on your age, health, sex and tobacco usage. Those in better health who don’t use tobacco products may pay a lower rate.

Survival period

This is the number of days you or your family member must survive after being diagnosed with an illness that is covered by the policy before the benefit is paid out.

If you or your family member dies before the designated period of time, no benefit will be paid. Each provider has different rules concerning the survival period.

Be informed

Finding the best Critical Illness insurance for your needs can be daunting.

Work with a licensed independent insurance agent to secure the right policy.

An independent agent can explain the pros and cons of the different available plans in layman’s terms, so you will know exactly what you’re signing up for.

UROne Benefits™ can help. Let us help you find the coverage that gives you peace of mind for the future. Contact us here or at 800-722-7331.

This post was originally published in April 2017; updated April 2024.