What is Critical Illness Insurance?

Critical illness Insurance: What Is It? You probably know someone who has been diagnosed with a serious illness.

Heart attack, stroke, and cancer are some of the most common, but these are among many other diseases that can drastically change your life and your finances.

The good news? You are more likely than ever to recover from a serious illness. On the other hand, it may take years to replenish your savings. This is where critical illness insurance comes in.

What is critical illness insurance?

Critical illness insurance, also known as heart attack insurance, cancer insurance, stroke insurance, or , is a product designed to help reduce the financial impact of a critical illness.

A South African surgeon invented it when he saw his patients struggling with their finances after recovering from major illnesses, making it the only insurance product not made by an insurance company.

Although not every illness is covered, an illness insurance policy will cover many common and financially disruptive conditions.

It protects you against critical illness and unexpected medical procedures by paying you the money you need for anything – to cover (what is critical illness insurance covers) lost wages, cover overtime, pay medical bills and even pay for treatment.

How does critical illness insurance work?

Although some serious illnesses are common, medical advances have enabled people with serious illnesses to live longer than ever before.

Survival rates are up but the bills associated with treatment can be crippling – especially with rising healthcare costs and the growing popularity of high-deductible health plans.

Critical illness policy works by providing a lump sum benefit after the diagnosis of the covered condition.

After diagnosis, the covered person (you or a loved one) submits a claim for benefits, which are paid directly to them.

You can use the benefits of a critical illness policy to cover medical expenses, your mortgage, utility payments, or even grocery bills.

If there is an experimental treatment that may help, a critical illness policy can help give you the means to pursue it.

If you need to travel for procedures or doctor appointments, a critical illness policy can help pay for your transportation and accommodation.

When faced with a life-threatening illness or condition, critical illness gives you the freedom to focus on full recovery.

Best Critical Illness Insurance

When it comes to dealing with a serious illness, having a comprehensive health insurance plan can sometimes be half the battle.

If you are seriously injured or have a major illness, you may need multiple surgeries and bed rest until you are fully recovered.

Such recovery periods mean taking time off from work to help with daily tasks like laundry and cooking, which can put even a well-off family under financial strain.

Critical illness insurance can help you pay for things your health insurance doesn’t cover during your recovery.

From alternative medicine to groceries and mortgage payments, illness insurance coverage can help you rest in the peace of mind that comes with knowing you’re protected in the event of a life-threatening illness.

If not being able to work means serious financial problems for your family, you should consider a critical illness insurance policy. Start your search with some of the providers (critical illness insurance list) suggested below.

Mutual of Omaha

If you are looking for a policy with flexibility then Mutual of Omaha can be a viable option for your critical illness insurance.

Mutual of Omaha lets you choose a benefit amount between $10,000 and $100,000, and you can also choose a term of up to 10 years or a lifetime.

You will get your profit as a lump sum, and you can use it as you like. Mutual of Omaha’s coverage is also notable because it includes coverage for conditions not covered by other insurance providers, such as blindness and deafness.

Coverage from Mutual of Omaha is available to applicants between the ages of 18 and 64. While you should work with an agent before getting a quote, this feature can be an advantage if you prefer a more personalized insurance shopping experience.


Breeze offers both disability and critical illness insurance to help you get back on your feet. You can take out this insurance to protect yourself (or your employees) from a number of issues, including:

  • Major organ transplants
  • the shock (Stroke)
  • Kidney failure
  • cancer
  • Advanced Alzheimer’s disease

You can choose how much you think the policy should cost and when you file a claim, you get a lump sum payment that can help you get back on your feet and handle such situations.


If you are looking for a policy with the highest possible return, you may consider exploring insurance options with the following:

AIG Consider AIG offers critical illness insurance policies with benefits up to $500,000, which is significantly higher than competitors. If you choose, you can also purchase a policy through AIG that is valid for your lifetime.

AIG allows you to customize your policy with optional riders. For example, you can purchase advanced critical illness coverage, which expands AIG’s standard critical illness to include additional coverage for more than 50 conditions. AIG offers up to 75% coverage for children under your policy.


Aflac guarantees critical illness insurance policies. This means that you do not need to complete a health questionnaire before being approved for the policy.

Each dependent child in your household covers 50% of the costs under your Aflac policy. Aflac also claims that most of its payments are released within days of being deposited.

Aflac’s illness insurance coverage extends to the most common conditions covered by these policies, as well as some specific inclusions (such as coverage for bone marrow transplants).

While Aflac’s coverage limits are lower than some competitors — you can buy policies with benefits up to $20,000 — its benefits for dependent children make Aflac a strong option for families.

Benefits of critical illness insurance

A serious illness can be much more dangerous than your health. It can wipe out your life savings or, worse, bankrupt you.

Even with a health insurance policy, out-of-pocket costs and other expenses can eat away at your life savings. Only then can a critical illness insurance policy come into play.

Is critical illness insurance worth it? It helps you in case of crisis without draining your emergency fund and other savings.

If you are diagnosed with a covered critical illness, the insurer will pay you a lump sum, as you wish.

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