CRITICAL ILLNESS INSURANCE

WHAT IS IT?

Critical Illness is a type of supplemental health insurance (also known as Gap Insurance) policy that pays a  lump sum cash benefit, for example $10,000 to $50,000 when covered members are diagnosed with certain medical conditions.

Types of illnesses covered can include heart attack, life-threatening cancer, loss of hearing, loss of speech, loss of vision, major organ transplant, paralysis, renal failure, stroke.

A critical illness plan is often offered along-side medical and disability plans and are commonly paired with high deductible health plan to help offset significant expenses associated with these conditions.

WHO SHOULD USE IT?

These plans are ideal for people who have may not have enough money set aside for unexpected medical expenses. Employees can choose how to spend their  benefit payment from the policy should they have a claim.  

For example, they could use the cash payment to cover their medical expenses or pay for daily living expenses such as rent, mortgage and utilities.  However, limitations on coverage do apply for pre-existing conditions.