Critical Illness Insurance is one of the newest health related insurance offered in US. This type of insurance provides a lump-sum amount to the policy holder in case the policy holder falls ill with a life threatening disease.

This type of setting is really close to Health Care Insurance since it could also cover the expenses of the policy holder to a certain extent. The policy holder could just sit back and relax as long as the health insurance takes care of the bills.

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What’s Missing in Current Health Care Insurance

Although health care insurance should be able to pay for most medical bills, there are things that  just cannot be covered by the health care insurance. All health care insurance will only help after the deductible and their services are only limited to health treatment of the policy holder.

The Health Care Insurance will only help the individual pay for the doctor, the medical procedures and in some cases, the medicine that are taken while staying in the hospital.

After hospitalization, the Health Care Insurance will stop assisting the policy holder. That means the policy holder will have to pay for home care, look for sources to pay for the bills and buy the necessities until the policy holder has fully recovered.

If the policy holder has Disability Insurance, the policy holder will be able to rely on this type of insurance but only to a certain extent. The Disability Insurance will only cover the possible earnings of an individual each month. But the fact that you need additional medical attention and medicine could jeopardize the monthly budget.

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Filling the Gap with Critical Illness Insurance

Critical Illness Insurance aims to cover the gap created by Health Care Insurance and Disability Insurance. The Health Care Insurance will only cover the medical treatment and the Disability Insurance will only cover the monthly pay.

However, Critical Illness Insurance aims to pay for other expenses that the policy holder may incur. It is a misconception that the Critical Illness Insurance will provide assistance to the policy holder in the hospital directly. Instead of transacting with the hospital, the insurance provider goes directly to the policy holder or its representative so that a lump-sum amount will be provided to the policy holder. The policy holder will have the freedom on where to spend the lump-sum given by the critical insurance provider.

The lump-sum could even be used at home since most critical insurance providers give the lump-sum to the policy holder in cash. The policy holder is given the freedom on where to use the said amount. Since most employees already have Disability Insurance that will provide them the financial assistance for the daily needs, Critical Illness Insurance could be used for medicines, personal health care or other services that the policy holder prefers.

This type of Health Care Insurance is attractive for those who are looking for further assurance when they fall ill with a life threatening disease. The fact that Critical Illness Insurance provides the lump-sum to the policy holder in cash assures freedom to the policy holders on how to spend the claims they received from the insurance provider.