Critical illness insurance pays a lump sum cash benefit when you are diagnosed with a critical illness.
In the time it takes you to read this sentence, the bills from a critical illness may have forced yet another American to file for bankruptcy. Some 1.4 million Americans will file for bankruptcy in 2009, which equates to about three every minute.
In the late 1990s, a new financial product was developed to help consumers cover expenses associated with critical illness. Appropriately, it’s called Critical Illness Insurance.
This specialized insurance provides a lump-sum, tax-free payment should a policyholder suffer from certain specific critical conditions. Some 600,000 Americans now have this protection purchased on an individual basis or through a plan offered by their employer.