Critical illness insurance is a policy that provides a lump-sum payment when you become critically ill. The illnesses covered by this policy differ depending on the insurance company. But the most common types of illnesses covered are cancer, heart attack, Alzheimer’s, paralysis, stroke, organ transplants, and blindness.

The specifics of each policy differ based on the insurance company. In some cases, the severity of the illness and the other conditions will affect your claim. For example, if you’re diagnosed with treatable cancer that you’re likely to overcome, then you may not be eligible to file a claim. You also cannot purchase the policy for a preexisting condition. In other words, you need to purchase this policy when you are in good health.

Who is Eligible?

If you already have life insurance and health insurance, then think carefully before purchasing critical illness insurance. Perhaps the disability plan from your employer is enough to cover your critical illnesses during times of emergency. Your personal finances might also be enough to pay for your needs. But typical health insurance policies will not cover all expenses associated with a critical illness. If you know you’ll need assistance, then a critical illness policy is worth considering.


This insurance is beneficial if you are at high risk for a specific illness. For instance, if your risk for cancer is high you might benefit from critical illness insurance. If you are not high risk for a specific illness, then there’s no way to know if you would benefit from this policy or not. You can discuss your health with your doctor to determine if you are high risk for any covered illnesses.