1. 12689 POINTS
    Ted Ratliff
    Owner, SFS Associates,
    Critical Illness insurance pays if you come come down with certain diseases.  Cancer, Heart Attack, or Stroke are most common.  It depends on the policy on the amount paid out if there is a claim.  Some pay a lump sum, some provide the benefits on an indemnity basis, paying a certain amount for various procedures.
    Answered on May 16, 2013
  2. 15786 POINTS
    Bob VineyardPRO
    Founder, Georgia Medicare Plans, Atlanta,GA
    When reviewing and comparing critical illness policies, you need to understand the definitions and exclusions. In some of the policies you may think you have a claim only to find it is denied because your medical condition does not match the policy language.

    Be sure to buy a health insurance policy, not a life policy with a critical illness rider.
    Answered on May 16, 2013
  3. 63333 POINTS
    Peggy Mace
    Most of the U.S.
    Critical Illness Insurance works by paying a lump sum of money to the insured person upon diagnosis of one of the qualifying illnesses. This money can be used to pay medical bills, to cover lost wages, to pay for incidental costs associated with treatment, to have some fun as a break from the rough time, or to use on whatever purpose the insured person wants to use it on.
    Answered on July 27, 2013
  4. 2180 POINTS
    Kelly Moser
    Social Media Strategist, Disability Insurance Services, California
    Along with what Ted mentioned, it's important to note that the benefit received from critical illness insurance does not necessarily have to go toward medical or hospital payments.  It's incredibly useful in paying off debts not covered by your regular health insurance, but it is up the policy holder's discretion on how they want to spend or save the money. Many people use it for mortgage payments, childcare, etc.
    Answered on September 3, 2013
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