Introduction
Human beings tend to carry on with their lives despite of major setbacks, such as misfortunes in the form of disasters or illnesses, and one of the things that helps can be insurance. In this article, we will talk about critical illness insurance and terminal illness insurance.
History
First, let us tackle the basics of critical illness insurance. This type of insurance begins with a contract between the person insured and the insurer, that if the policyholder is diagnosed with one of the critical illnesses that are in the list supplied by the company (you can see such a list further on in this article), the insurer will pay the policyholder a lump sum of money. The amount to be paid due to a critical illness insurance may also be realized in case of certain surgical procedures.
Critical illness insurance is useful because it covers the cost of medication and procedures used for care and treatment of the condition. It also goes a long way in replacing the income that is lost due to inability to work as usual because of the illness. A critical illness demands changes in lifestyle, such as relocation, and the critical illness insurance policies cover that too. The benefits of a critical illness insurance policy cannot be underestimated, and that is why many employers choose it for their staff – this is an investment in the workforce, and also attracts others to join the company.
The many conditions which are covered by a critical illness insurance are : blindness or deafness that may result due to an accident, failure of the kidney or kidneys, an organ transplant that involves a major organ, multiple scelrosis, paralysis of the limbs or of a portion of the body, Alzheimer's disease, Parkinson's disease, and also HIV/AIDS, but only where it is contracted through a blood transfusion or during a surgical procedure.
Features
It must be understood that as medical science continues to evolve and get better and more efficient, some of the diseases on the list might not need to be covered by critical illness insurance at all. This is also true for diseases in the past, as many of them are no longer included under critical illness insurance contracts.
Tips and comments
Terminal illness insurance is also also a part of insurance products, though it very different from critical illness insurance (do not get confused between the two!), and the contract for the same involves the payment of a lump sum cash payment by the insurer is a policyholder is diagnosed with a disease due to which he or she will die within twelve months of the coming of the diagnosis. Terminal illness insurance is not an individual product in most countries, and it is clubbed together with life insurance policies, instead. This clubbing together means that the beneficiaries of the policy do not have to wait for the policyholder to die before they receive the benefit of the policy – it will be given to them as soon as terminal illness insurance is operative.
