The Coverage of Critical Illness Insurance

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As we mentioned in previous article, critical illness insurance is a type of insurance which will pay a lump tax free benefit to the insured if he is diagnosis of one of the critical illnesses covered by the policy. The benefit is intended to help insured persons maintain their quality of life and financial independence after suffering a life-threatening illness.
Critical illness insurance covers over 10 impairments including the following
1. Heart disease,
2.Coronary artery bypass graft.
3.Cancer
4.Renal or kidney failure
5.Multiple sclerosis
6.Major organ transplant
7.Blindness
8.Deafness
9.Alzheimer's disease
10.Paralysis
11.Parkinson's disease
12. Occupational HIV Injury
We will try to discuss the precised definitions of above conditions in the next article, but in this article we will try to focus on the waiting period and policy exception.
a) Waiting period or elimination period
In order to To qualify for the benefit, the insured must survive the diagnosis of the illness for 30 days. If the insured dies within 30 days of the diagnosis, the beneficiary is entitled only to a refund of the premiums paid.

b) Exceptions to the waiting period
i) If the insured is diagnosed with cancer within 90 days of the when the policy was issued the claim will be denied. Many insurers will terminate the insurance and refund the premium if cancer is diagnosed within this 90 day period. This reduces the chances of the insurer being selected against by insureds who may have reason to suspect the onset of cancer.

c) Pre-conditions are not covered in the policy, unless approved by insurance underwriter and included in the policy coverages.

ii) Many insurers also require either
* a 90-day
* a 180-day waiting period after the onset of paralysis before they will make a payment under the Critical Illness policy.Once a policy pays out a critical illness benefit, the policy is terminated.

I hope this information will help. If you need more information of the above subject, please visit my home page at:
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