Critical illness insurance is similar to accident insurance in that it is often used as a supplement to standard health insurance. It pays out cash amounts to the insured, usually in amounts up to tens of thousands of dollars, but rarely more than one hundred thousand. Critical illness insurance is some of the most important insurance you can consider because a critical illness can financially devastate an individual or family.
Critical illnesses can be defined differently by different companies. For example, some companies consider the onset of diabetes a covered critical illness while others do not. Critical illness plans often differentiate between invasive and non-invasive cancers. When setting up a critical illness insurance plan, it is always best to speak with a trained insurance agent who is licensed in your state.