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Celebrating 50 Years of CAA Insurance

June 12, 2024

3 minute read

What is critical illness insurance?

Critical illness insurance is designed to provide you and your loved ones with financial support in the event you experience a severe health condition. If you’re diagnosed with a covered critical illness, your insurance can provide you with a one-time lump-sum payout, subject to the terms of the policy, that can be used to cover anything that you and your family might need.


Unlike life insurance, which only provides a financial benefit if you pass away, critical illness provides financial support while you’re still alive if you’re diagnosed with a covered illness. This is why the payout is often referred to as a living benefit.


This financial support can help cover anything from medical expenses to lost income, so you can focus on the most important thing—recovering.

What illnesses are considered “critical illnesses”?

Critical illnesses typically refer to life-altering or severe conditions. They can often be longer-term illnesses and have serious impacts on the lives of those affected. Common critical illnesses that you might be familiar with include heart attacks, strokes, or cancer. 


Critical illnesses are typically categorized into critical illness and early-stage critical illness. Early-stage critical illnesses are often diagnosed earlier and at a less severe stage. They’re usually still included in critical illness insurance because they can have potential longer-term, life-threatening implications.


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