What is Critical Illness Insurance

Ready to get started?

Your quotes are always free.

Tim is a licensed life insurance agent with 23 years of experience helping people protect their families and businesses with term life insurance. He writes and creates stuff for QuickQuote and other insurance and financial websites...

Full Bio →

Written by

UPDATED: Feb 25, 2020

Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We partner with top insurance providers. This doesn't influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about life insurance. Our goal is to be an objective, third-party resource for everything life insurance related. We update our site regularly, and all content is reviewed by life insurance experts.

Q: What is critical illness insurance?

A: Critical illness insurance is a type of medical coverage that pays a lump-sum benefit to the insured upon the diagnosis of a critical illness. For example, if a policy covers a specific form of cancer, the insured will receive cash from the insurance company if she is diagnosed with this covered form of cancer. This is especially convenient as the cash payout can be used completely at the insured’s discretion.

Most comprehensive major medical insurance policies do not cover all expenses related to serious illness (e.g. lost income, recovery assistance, etc.). This is where critical illness insurance shines. These policies can help cover these additional expenses, allowing the insured to focus on recovery without the added stress caused by these expenses.

Critical illness policies appear to be growing in popularity in the U.S. The average benefit amount for middle-income policyholders is approximately $15,000 – $25,000. Policies can be purchased with larger benefit amounts as well.

American General Life Insurance Company (AIG) is currently offering critical illness insurance policies to consumers who have recently purchased term life insurance from the company. If qualified, new policy owners can add this benefit with no additional underwriting or medical review. Ask us about this offer if you are a new American General Life policy owner. If not, you can still purchase this coverage separately.

Ready to get started?

Your quotes are always free.

Free Car Insurance Comparison

Compare Quotes From Top Companies and Save

 Secured with SHA-256 Encryption