It is not something anyone wants or hopes for the worst of illnesses to strike them or their loved ones; however, it does happen. If it does, the stress and anxiety get often caused by financial stress. It is where critical illness insurance could make a difference.
This type of insurance for the person you love could pay for expenses and, at the very least, in terms of a budget, offer peace of mind when needed most.
What Is Critical Illness Insurance?
An employer’s benefit plan usually provides critical illness insurance. It provides a lump-sum payment to an employee if a specific illness or condition gets discovered.
Regardless of whether the cost of the treatment gets covered by health insurance or additional charges, such as hotel stays for family members close to a difficult-to-reach medical institution, the beneficiary may use the money in any way they see fit.
Even if the diagnosis is fatal, and money cannot get used to fund treatments, the benefits of critical illness can still be precious.
What Diseases Are Covered?
Most critical illness insurance policies include the big five, the most hated medical ailments. They include:
- Cancer
- Heart attack
- Stroke
- Kidney failure
- Major organ failure
Other circumstances could also get covered based on the policies offered by the insurance provider. It could include:
- Paralysis
- Perforation of vision
- Hearing loss
- Coma
- Advanced Parkinson’s disease
- Motor neuron disease
- Workplace HIV
And other medical conditions, by the terms provided in the policy for critical illness and other diseases, could be eligible for a partial benefit. It could include:
- Angioplasty
- Bypassing the coronary artery
- Cancer in situ
- Skin cancer
The Potential Need for Critical Illness Insurance
Many people get covered by health or medical insurance provided by their employers. But there are usually costs and expenses that aren’t covered.
For instance, out-of-pocket expenses, deductibles, copayments, and coinsurance obligations could be significant base on the insurance policy.
Many of the most effective cancer treatment facilities, such as the ones listed above, are not covered by various health plans. In addition, out-of-network services may not get entirely covered by the particular health insurance plan but are nevertheless a preferred option for individuals. Sometimes, surcharges get utilized for specialty hospitals.
Other coverage gaps that exist in health insurance and primary medical coverage may be:
- Second opinions
- Non-traditional or experimental treatments
- Travel costs
- Formulations for drugs
Additionally, there are expenses associated with illness but not directly connected to treatment. For instance, there might be a loss in income if the primary breadwinner is sick or needs to care for sick, sick loved ones. It could result in a daily cash flow requirement and the need to draw money or tap retirement savings, each of which has costs. Other expenses could include:
- In-home care
- A medical counselor or hospital advocate
- Modifications to your car or home
Covering Critical Illness
As mentioned, critical illness coverage gets usually provided through employer benefit plans. It means that payments get made through deductions from your paycheck. Employers may also take care of a portion of the expense.
In the majority of cases, insurance is available for dependents. Depending on the conditions in the policies, it could be portable, which means you can carry the coverage with you should you move jobs and quit with your employer of choice. At Ottawa Life Insurance, we provide health, life, and group insurance for businesses and individuals in Ottawa. For further information, contact us at (613) 454-1424 or by email at info@ottawa-lifeinsurance.ca.
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