Critical
Illness
We, and the medical community should be proud that there
is a need for critical illness insurance. It is a good thing,
a positive thing. It was so important that the product be
developed that it was created by a world-renowned doctor,
not an insurance agent or an insurance company.
Why is it needed then? It is because medical science is advancing,
illnesses are being diagnosed earlier and people are surviving.
The fact that this product exists is a positive sign of our
advancement.
The Critical Illness Recovery plan provides a lump sum
benefit to be paid in the event that an individual contracts
a critical
illness. The plan provides a lump sum payment of a specified
amount upon diagnosis of critical illness including, cancer,
kidney failure, multiple sclerosis and paralysis. It may
also insure common illnesses such as heart attacks and
Alzheimer’s.
The premiums for the Critical Illness Recovery plan can
be designed either on level basis or on an increasing basis.
Many of the plans provide for a return of premium at death.
This means that if the insured does not contract a critical
illness, the premiums are refunded. An additional rider
may
be included to refund all premiums including the cost of
the rider after a specific time period, if there has not
been a claim. The Critical Illness Recovery policy adds
a new dimension to an estate plan and is designed to provide
the necessary financial assistance to permit the insured
and his/her family to cope with a critical illness.
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