Critical Illness Insurance Living Benefits Center
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Background Introduction
What is Critical Diagnosis coverage?
(or as it has come to be known in the United States as "Critical
Illness")?
Critical Illness insurance pays all of the current face amount of the insured's plan, policy, or certificate upon diagnosis of a Critical Illness such as a Myocardial Infarction (heart attack), Stroke, Cancer, Kidney Failure, and Major Organ Transplant. It will also pay a portion of the current face amount for surgical procedures such as Angioplasty and Major Heart Surgery as well as upon the diagnosis of HIV acquired as a result of a blood transfusion.
The plan pays a 100% lump sum benefit, regardless of life expectancy or the ability to work, or the expenses incurred! This is why Critical Illness insurance should not be confused with Cancer Policies or Accelerated Death Benefits offered by some insurance companies
The need for Critical Illness insurance is more evident today than ever. Since this is a new product, not only to the United States but also to you the agent, prudence should be exercised when presenting features and benefits.
People still need to insure their lives in case of death, and people still need to insure their incomes in case of disability.
Cancer Policies and Specified Disease Policies pay benefits based on the type of expenses incurred; i.e., hospital confinement, etc. Many times these expenses are covered by major medical or group insurances.
Many diseases, such as cancer, are treated on an outpatient basis, yet benefits for these expenses are often limited. Critical Illness Insurance will pay benefits regardless of the course of or cost of treatment
Some life insurance products offer
terminal illness coverage. These plans pay benefits only if you are terminally
ill. Critical Illness pays benefits for surviving an illness. That's when
it is needed the most.