One important piece of estate planning is acquiring the appropriate type of insurance coverage necessary for your needs, such as critical injury insurance.

Many people who create estate plans know that they will have to decide on the types of inheritances they want to leave behind, make allowances for the possibility of becoming incapacitated, and create specific legal documents that will carry out their wishes after they are gone. But insurance also plays an important role in this process.

The right kind of insurance can protect your finances against certain expenses that you might one day have to incur. Critical injury insurance can play a key part in estate planning because, even with health insurance, you might have to pay some significant out-of-pocket health care expenses if you experience a significant injury or illness. Here are some common questions about critical injury insurance and how it works.

What is critical injury insurance?

We all know that our health care insurance isn’t without its out-of-pocket expenses. It’s quite common, for example, for people to have to pay larger co-pays every several years or so. Other out-of-pocket expenses for costs not covered by your health insurance also tend to increase as time goes on, and if you ever suffer serious injury or illness, the out-of-pocket expenses can balloon very quickly.

For example, the estimated out-of-pocket expenses for someone suffering a heart attack exceeded $14,000 last year. Needless to say, these costs go up every year.

Critical injury insurance is designed to protect you from these unexpected costs. Like other insurance policies, you will have to pay a monthly or yearly premium. If you ever suffer from a critical injury or illness, the critical care insurance will pay you a lump sum payment that will allow you to pay for the out-of-pocket expenses not otherwise covered by your health insurance.

What does critical injury insurance cover?

That depends on the individual policies. Many policies cover the three most common sudden illnesses: heart attacks, strokes, and cancer. However, certain policies define what types of cancers are covered and have coverage limits that you should carefully consider before making your choice. You should also carefully review each policy for other limitations, such as age-restricted payouts.

How does critical injury insurance work?

Depending on your policy you might expect to pay as little as $15 per month for critical injury insurance. Should you suddenly suffer from a critical illness, you will then be able to file for benefits. If your claim is accepted you will receive a lump sum payment, typically in the range of between 10,000 and $25,000, though some policies offer larger benefits. You can then use this payment to pay for the out-of-pocket expenses not covered by your insurance policy.

Of course, as with any financial product, you’ll want to make sure your critical injury insurance fits into your overall financial and estate plan. You might, for example, be better able to pay for out-of-pocket expenses by using a health savings account or other financial tool. Consult with your attorney for advice about your options.