What is critical illness insurance?
Critical illness insurance is an insurance product designed to help protect you from the financial fallout of a serious disease or health event like a heart attack, stroke or cancer. It’s sometimes known as heart attack insurance, cancer insurance, specified disease insurance or dread disease insurance.
If you are diagnosed with a covered disease or health event, a critical illness insurance policy will help you focus on your recovery by supporting your finances. It gives you money you can use on whatever you need, from replacing lost wages or traveling for treatment to taking extra time off work or paying off your medical bills.
Critical illness insurance is not comprehensive health insurance. There is no substitute for comprehensive health insurance. You and your family should have comprehensive health insurance coverage before considering the purchase of critical illness insurance, in fact, some states require it. However, critical illness insurance can complement your health insurance by providing cash benefits directly to you if you are diagnosed with a covered condition. How you choose to spend the benefits is up to you.