Critical illness and accident insurance plans are two types of supplemental policies that can give you extra cash if you have a specific illness or injury. While neither acts as your stand-alone insurance policy, they can each complement and enhance your regular health insurance in different ways. Think of them as your backup plans, helping you with cash flow during life’s unexpected twists and turns.
Critical illness plans give you money if you’re diagnosed with specific types of illnesses (such as cancer), experience medical emergencies like a heart attack or if you need an organ transplant. You can benefit from these plans no matter your age. Payouts can be used for a range of expenses, from medical treatments and deductibles to rent or mortgage payments and travel to out-of-town clinics. The conditions covered can vary, so check each policy before choosing a plan.
Accident plans work in a similar way. They give you money in the event of an accident or injury, like getting in a car crash or falling from a roof. As with critical illness plans, you can use this cash in several ways — from paying for ER visits and hospital bills to other household expenses. However, accident plans can come with limitations, so make sure you truly understand your coverage before deciding it’s the right fit for you.
What’s the best part about critical illness and accident insurance — besides the extra cash? You can sign up at any time, without having to wait for a special enrollment period. Plus, they come with a reasonable price tag for almost any budget, often cheaper than your regular health plan’s premium.