Critical Illness Insurance pays living benefits … in one-lump sum … to an individual upon diagnosis of a heart attack, cancer, stroke, kidney failure, terminal illness, the need for an organ transplant, etc.
The key is that payment is triggered by diagnosis. Benefits are not tied to any reimbursement of expenses, like health insurance, and you can use the money in any way you choose … to replace lost income, pay for experimental treatment, pay off personal debts, including mortgages and other ongoing expenses.
There are NO LIMITATIONS on how the money is to be used!
The vast majority of Americans have never heard of Critical Illness Insurance because most insurance agents haven't either! Most agents still prefer to sell mortgage life insurance and yet, according to HUD … only 3{b922f8cefff31631deb29509dd0146200d12f58f2292deeff3107b9a333ca788} of mortgage foreclosures are the result of death and 48{b922f8cefff31631deb29509dd0146200d12f58f2292deeff3107b9a333ca788} are the result of a severe financial hardship caused by a serious illness!
A recent study conducted by Harvard University found that 50{b922f8cefff31631deb29509dd0146200d12f58f2292deeff3107b9a333ca788} of the bankruptcies in America were the result of a medical emergency … and that over 75{b922f8cefff31631deb29509dd0146200d12f58f2292deeff3107b9a333ca788} of those folks had health insurance at the onset!
You see, you can have the greatest health insurance coverage in America and still get wiped out, because health insurance is designed to cover medical expenses only. It's not going to pay the mortgage or rent, college tuition, car payments, utility bills or buy food for the family. It won't pay your health or life insurance premiums (you better not let those policies lapse when you're critically ill).
This is where the enormous strength of a Critical Illness policy lies … as a source for much needed funds in a time of medical emergency.