Critical Illness Insurance

Definition

• An insurance policy that provides coverage in the event that the policyholder contracts a critical or catastrophic illness. What constitutes a critical or catastrophic illness differs depending on the insurance policy, but conditions covered usually include long-term hospitalization, heart attack, stroke or cancer. Critical illness insurance, also known as "catastrophic illness insurance", generally provides benefits in the form of a one-time lump sum payment.

Notes
A health insurance policy rider.

Synonyms
disease coverage, health insurance benefit, serious illness insurance

Acronyms
CII

Related Terms and Acronyms

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  • Physical activities an average individual is capable of doing on a normal day.
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  • Insurance that repays debt if the borrower cannot.
• Disease Management (DM) — Acronym, Important,
  • The process of discussing and agreeing to treatments and care plans for individuals with long-term health care needs.
  ➥ Heath care decisions made to manage a disease.
• Dread Disease Rider — Definition,
  • Insurance that provides a benefit if the policyholder is diagnosed with an illness that is deemed serious or terminal.
• Health Insurance (HI) — Acronym,
  • Insurance that covers the costs of medical expenses for insured persons.
• Life Insurance — Definition, Very Important,
  • An arrangement where an insurer agrees to pay a benefit to one or more beneficiaries in the event of the policyholder's death.
  ➥ CanEquity offers life insurance.
• Long Term Care Insurance (LTC) — Acronym, Important,
  • Insurance that covers health care costs for individuals with chronic or disabling conditions.
• Residual Benefit — Definition,
  • Insurance benefits paid to individuals who lose income due to a covered disability.