Critical Illness Insurance
Definition of "Critical illness insurance"
Insurance policy that pays a face amount/ lump sum if the insured is diagnosed with a specified critical illness. This sum is paid directly to the insured regardless of any other sources of income (job-related and non-job-related), expenses incurred (medical and nonmedical), and any other factors. Generally, critical illnesses include stroke, heart attack, cancer that is life threatening, paralysis, deafness, organ transplant requirement, blindness, and kidney failure. Some policies pay a percentage of the face amount, for example 15 to 30%, if a less serious illness occurs or medical procedure such as a coronary bypass must be performed. The illness does not have to result in the disability of the insured (total or partial); the insured still receives the face amount payment. This type of insurance can be purchased as a separate policy or as a rider to a LIFE INSURANCE or DISABILITY INCOME policy. The face amount is not paid if the insured dies within 30 days of being diagnosed with the covered illness and there is usually a WAITING PERIOD before the coverage is in force. This coverage may be purchased on both a personal and business basis.
Popular Insurance Terms
actual fire losses divided by the total value of the property exposed to the peril of fire; actual losses resulting from fire divided by the total fire amount of in-force business. ...
Coverage for damage to a building or its contents due to the weight of these elements. Outdoor property such as patios, swimming pools, and sidewalks are usually excluded. ...
tort against another person's property, designed to detain or dispose of it in a wrongful manner. For example, wrongful selling of another person's automobile without permission would ...
Coverage for present and past U.S. uniformed services members under one of these programs: United States Government Life Insurance (USGLI) established in 1919 to provide RENEWABLE TERM LIFE ...
Health insurance contract sold to an individual to provide coverage for medical expenses. Contrast with group health insurance. ...
Effort of a poor risk to seek insurance coverage. The onset of a health problem such as heart disease, for example, may prompt a person to apply for life insurance before seeking medical ...
Federal act composed of amendments to the Product Liability Risk Retention Act of 1981 and enacted to make the procedures more efficient for creating risk retention groups (capitalized, ...
Undiscounted loss reserves that must be maintained by property and casualty insurance companies in an adequate amount to provide for the payment of the settlement value of the outstanding ...
Endorsement to personal automobile policy (PAP) that covers an insured involved in a collision with a driver who does not have liability insurance. ...
Have a question or comment?
We're here to help.