What is critical illness insurance - best source for information and policy costs

What is Critical Illness Insurance Protection?

What is critical illness insurance and why do you need it?

Critical illness insurance that provides a lump sum cash payment if the policyholder is diagnosed with one of the specific illnesses covered by the policy.

The insurance contract outlines the specific rules that define when a diagnosis of a critical illness is considered valid.  Often it will specify that the diagnosis must be made by a physician who specializes in that illness.  Or it may name specific tests such as EKG that confirms the diagnosis.

The concept was first conceived by Dr Marius Barnard.  The first critical illness product being launched on 6 October 1983 in South Africa.  It is now commonly sold around the world.

This form of insurance originally covered four primary human health conditions:   Cancer – Stroke – Heart attack -Coronary bypass surgery

Why do you need critical illness insurance?

The protection was originally sold to provide financial protection following the diagnosis or treatment of an illness deemed critical.
The finances received could be used to:

  • pay for costs associated with care and treatment
  • pay for recuperation aids and non-covered health expenses
  • replace lost income resulting from a decreased ability to earn
  • fund for a change in lifestyle

This insurance can be purchased on an individual basis.  It is commonly offered in the United States through the worksite.

Best resource for critical illness insurance information

critical illness insurance associationThe American Association for Critical Illness Insurance is the nation’s top resource for information.  This is our sister organization along with the American Association for Long-Term Care Insurance and the American Association for Medicare Supplement Insurance.

Visit their website to find the latest critical illness insurance costs.  You will also find tips that can help you save on this important protection.

You can access the Critical Illness Insurance Cost Calculator to get instant quotes for this protection.

As posted on the Association’s website, here are 10 top insurance companies offering critical illness insurance:

  • Aetna
  • Aflac
  • Allstate
  • Assurity
  • Bankers Life
  • Liberty Bankers
  • MetLife
  • Mutual of Omaha
  • Unum
  • Unified Life


Watch our videos and learn more about short-term care insurance, a long-term care planning option when cost, age or health is an issue PLUS a way to cover significant gaps in Medicare.