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Critical illness insurance

Critical illness insurance
Critical illness insurance

Critical illness insurance is a coverage that provides benefits with extra expenses to Individuals who seek protection against unpredicted health crises. In essence, you can guard yourself with this insurance by accessing a lump sum payout which will help you meet your hospital expenses for life-threatening illnesses.

Some of these diseases may include cancer, cardiovascular diseases, and organ transplants among 32 other illnesses.

The policyholders are relieved from the stress of worrying about funding their bills to concentrating on getting well instead. Here, we will discuss the benefits it provides, how to choose the best plan, and why it is becoming essential for everyone’s financial strategy.

Basic features of critical illness insurance.

Waiting period is required

Generally, a waiting period is involved for some specific illness or a type of surgery. For example, If a type of surgery or illness is diagnosed during the waiting period, benefits will not be paid.


They offer a lump sum payment if you’re diagnosed with an illness covered by the policy.

Subject to policy limit

The policy payment may vary based on stages of illness, like cancer upon its diagnosis and several critical illnesses

Policy Review

Payments are made only if the surgery or illness meets the definition outlined in the policy.

Key benefits of critical illness insurance

The payout goes directly to you

Since the payout goes to you, the finances can be channeled to any other purpose that could be different from medical costs. So the proceeds can be beneficial to meeting other personal needs.

Inexpensive premium

Purchasing a plan covers the cost of health insurance without raising your monthly health insurance premium. In addition, most of the plans are relatively economical which makes it more interesting.

Financial stability

Critical illness insurance keeps you stable while managing an illness without the stress of sourcing funds by yourself.

Options to consider besides critical illness insurance

Perhaps you’re not sure if critical illness insurance is suitable for you, let’s discover the secondary health insurance policies you might consider.

Hospital Indemnity Insurance

Depending on the policy in place, it could offer a fixed benefit fee for the entire hospital stay when you’re hospitalized beyond your health insurance plan.

Flexible Spending Account

This is essentially a savings account to meet health care expenses when you’re out of funds, including co-payment and co-insurance.

Also Read:  What is High deductible health plan?

Top 5 companies that offer critical illness insurance 

Aflac: It’s a supplemental health insurance company that pays cash benefits to the policyholders on a covered accident or illness event. Aflac is the leading provider of supplemental insurance in the United States. But you are eligible to apply for the accident coverage if you’re between the ages of 18-69. The acronym stands for ‘American Family Life Assurance Company of Columbus.

Mutual of Omaha: it’s a Fortune 500 mutual insurance company and financial services firm located in Omaha, Nebraska and has the most comprehensive benefits among the insurance companies. Mutual of Omaha is a financial organization that offers different insurance and financial products for businesses, groups, and individuals all over the United States.

Liberty Mutual: It has the best online application process and is still one of the nation’s largest global property and casualty insurers that offers services for auto, renters, home, etc. Based on the 2020 revenue,  It ranked 71st  on the Fortune 100 list of largest companies In the United States.

American Fidelity: It provides optional supplementary health insurance products and tax-deferred annuities to education employees, healthcare providers, auto dealerships, and municipal workers across the United States. The headquarters is situated in Oklahoma City.

AIG: known as the American International Group is an American global finance company in collaboration with over 80 countries.  The company focuses on three key areas: general insurance, life, and a standalone technology-enabled subsidiary. AIG serves as the title sponsor for the AIG open golf tournament.


In conclusion, critical illness insurance provides support during severe health challenges, allowing the individual to focus more on recovery, without financial stress. This makes it a crucial safeguard worth investing in. While we can’t predict the future, we must prepare for a healthy lifestyle with this coverage. Take your time to determine your personal needs and also seek professional advice to know the insurance plan that best suits your needs.


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