What is Critical Illness Insurance and how does it relate to Workplace Benefits?
This is a type of insurance package that gives policy holders compensation when a chronic illnesses, disease or severe injury occurs. Employees who are suddenly diagnosed with a critical illness can rely on this insurance policy for a steady flow of income in the long term.
Who it is for:
Critical Illness Insurance is designed to protect individuals who work. When a person is no longer able to perform his job duties due to an illness, he or she will receive money to cover living expenses and other costs of medical treatment. This insurance plan appeals to any person of working age, and senior citizens usually do not purchase this financial instrument.
How it works:
When an insured person is officially diagnosed with a critical illness, he or she may file a claim with the insurance agency in order to receive a lump sum of money. The insurance company only needs to see proof of the diagnosis in order to transfer the appropriate funds to the insured client. Depending on the severity of the illnesses, the policy holder can also receive a monthly check to cover for any lost income due to inability to work in a previous job position.
Different Types of Coverage in Existence
The most common type of coverage for this insurance plan essentially yields a large single payment upon diagnosis of the critical illness. The lump sum payout helps to deal with major medical expenses and other situations that arise due to a person losing a job. Additionally, some policies also provide extra payments to support a spouse who is unemployed as well as any dependent children under a certain age.
Being diagnosed with a critical illness like cancer can have a devastating effect on a person’s physical, emotional and financial states. This insurance gives immediate financial relief to deal with such a crisis that evolves from a severe disease or injury. People who suddenly find themselves out of work can receive a steady income while trying to recover and make major lifestyle changes.