What is Critical Illness Insurance?
No one plans for a critical illness but having essential supplemental insurance coverage during a major medical event can bring peace of mind and financial support when it is needed most.
Critical illness insurance is the plan that protects you in the event of a future major illness diagnosis. This type of plan supplements existing health insurance coverage with extra funds that meet the demands that come with critical illness health emergencies. You may receive a lump sum to cover these added expenses or monthly payments depending on the plan. Coverage limits vary, but the additional protection helps you focus on recovery rather than costs.
How critical illness insurance works
Just like your health insurance plan, you pay a monthly premium for critical illness protection. If you are diagnosed with a major illness, critical illness insurance pays you depending on the coverage level of the plan and type of illness. Other factors may include:
- Your age.
- Your general health and health-risk factors.
- The number of illnesses covered by the plan.
- Whether you have selected an individual, couple, or family plan.
- Whether you smoke or use tobacco products.
Some critical illness insurance plans may guarantee coverage without requiring a health screening, especially if you already have another plan with that insurer.
What does critical illness insurance cover?
Critical illness insurance plans typically cover conditions classified specifically as critical illnesses. Major health events typically include but are not limited to:
- Heart attacks
- Organ transplants
- Coronary bypass
Questions to ask about critical illness coverage
Every critical illness insurance plan is different, so be sure to know the answers to these questions concerning your coverage.
- What critical illnesses will be covered by the plan?
- Will you receive a lump sum or monthly payments?
- Is there a waiting period before the payment?
- What percentage of your total benefits will be paid?
- Will you have coverage if a critical illness returns after recovery?
How to use critical illness benefits
Unlike health insurance — which pays for medical procedures, doctors, and hospitals — critical illness benefits can be used for any expenses that come during those tough times.
The benefits are paid directly to you, so they can be used for cost-of-living expenses during recovery, travel to and from treatment, and in-home care. Critical illness insurance benefits can also be used for other medical costs not covered by your health insurance plan, deductibles and copays, and even childcare expenses while you recover.
Is critical illness insurance worth it?
The monthly premiums of most critical illness plans are typically low in cost, which makes them affordable add-ons to your health insurance coverage. Think about critical illness insurance if you have a family history of certain diseases, or you or a family member are becoming older and need extra coverage for protection against major illnesses due to aging.
Rounding out health insurance with supplemental coverage
A critical illness insurance plan is just one type of supplemental coverage that can complete your health insurance coverage. Adding other supplemental insurance plans gives you added protection in times of health emergencies, such as accidents and hospitalizations.
Accident insurance provides cash payments to help cover medical expenses not covered by your health insurance plan and out-of-pocket costs from an injury or accident.
Hospital indemnity insurance pays cash benefits that may cover inpatient hospital stays due to injury or illness, as well as expenses while you are recovering at home.
Choosing a critical illness insurance plan
Anthem is here to help you select a critical illness insurance plan that is right for you and your family. Learn more about how supplemental insurance and health insurance coverage work together to create comprehensive protection for peace of mind.