What is critical illness insurance and how does it work? | Patriot Plans
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Supplemental Health

What is critical illness insurance and how does it work?

Critical illness insurance pays a lump sum cash benefit directly to you when you're diagnosed with a covered serious illness — typically cancer, heart attack, stroke, kidney failure, or major organ transplant. The payment is made on diagnosis, not based on medical bills. Cash paid directly to you — use it for anything. Typically costs $50–$100/month for a $50,000 policy for a 45-year-old.

Key Points

  • Pays a lump sum on diagnosis — not based on medical bills
  • Covered conditions typically include cancer, heart attack, stroke, kidney failure, organ transplant
  • Cash paid directly to you — use it for anything
  • Pays in addition to health insurance — no coordination of benefits
  • $50,000 policy for a 45-year-old: approximately $50–$100/month
  • Covers the indirect costs health insurance doesn't: lost income, travel, childcare