A newer concept in the United States, critical illness insurance has been popular in the United Kingdom, Canada, and Japan for sometime.
It takes the concept of supplemental coverage for cancer and expands it to cover heart attack, stroke, organ transplant, kidney failure, and other serious illnesses and medical conditions. Rather than paying a reimbursement for expenses incurred, critical illness insurance usually pays a tax-free lump sum upon the first diagnosis of the covered critical illness. The lump sum may be as low as $5,000 or as much as $50,000 and higher.
The employee chooses the amount that best fits their needs and budget. Wellness benefits may also be included. Coverage is offered for the employee, spouse, and/or children. Critical illness insurance is another product that provides an attractive supplement to help offset higher deductibles, out-of-pocket limits, and out-of-network exposures.