A critical illness insurance policy is a policy that provides a lump sum payment if you are diagnosed with a illness covered by the policy. Typical illnesses can include cancer, heart attack, stroke, and paralysis. Whether an illness is covered is dependent solely upon the wording of the policy. Coverage can vary depending on the extent of the illness or the manifestation of the illness.
If you suffer an illness covered by the policy, you are required to make an application supported by medical evidence from your doctor or specialist. It is important to read the policy carefully to understand if the illness is covered. If your application is denied, you can often request a reconsideration and/or file an appeal.
Critical illness policies are different from long term disability policies and the lump sum payment is typically not tied to your ability to work or engage in your activities of daily living but instead will be paid if you are diagnosed with a covered illness. For more on long term disability benefits, see our recent post.
If you have questions or are denied critical illness coverage, contact Lamont Law for a free consultation.