Critical illness insurance

From WikiMD.org
Jump to navigation Jump to search

Critical illness insurance (pronunciation: /ˈkrɪtɪkəl ˈɪlnɪs ɪnˈʃɔːrəns/) is a type of insurance policy designed to provide financial support to the policyholder in the event of a specified serious illness.

Etymology

The term "critical illness insurance" is derived from the English words "critical" (meaning 'of decisive importance'), "illness" (meaning 'a disease or period of sickness affecting the body or mind'), and "insurance" (meaning 'an arrangement by which a company provides a guarantee of compensation for specified loss, damage, illness, or death').

Definition

Critical illness insurance is a policy where the insurer is contracted to typically make a lump sum cash payment if the policyholder is diagnosed with one of the specific illnesses on a predetermined list as part of an insurance policy.

Coverage

The policy may also be structured to pay out regular income and the payout may also be on the policyholder undergoing a surgical procedure, for example, having a heart bypass operation. The policy may require the policyholder to survive a minimum number of days (the survival period) from when the illness was first diagnosed. The survival period used varies from company to company, however, 14 days is the most typical survival period used.

Related Terms

  • Insurance: A contract in which an individual or entity receives financial protection or reimbursement against losses from an insurance company.
  • Health Insurance: A type of insurance coverage that pays for medical and surgical expenses incurred by the insured.
  • Life Insurance: A contract between an insurer and a policyholder in which the insurer guarantees payment of a death benefit to named beneficiaries upon the death of the insured.
  • Disability Insurance: A type of insurance that will provide income in the event a worker is unable to perform their work and earn money due to a disability.

See Also

External links

Esculaap.svg

This WikiMD dictionary article is a stub. You can help make it a full article.


Languages: - East Asian 中文, 日本, 한국어, South Asian हिन्दी, Urdu, বাংলা, తెలుగు, தமிழ், ಕನ್ನಡ,
Southeast Asian Indonesian, Vietnamese, Thai, မြန်မာဘာသာ, European español, Deutsch, français, русский, português do Brasil, Italian, polski