What Do You Mean It's Not Covered: How the Policy Will Pay Claims

The "payment period" is the maximum length of time that expenses are covered for any one injury or sickness. This particular policy provides a maximum payment of $500,000 for both injury and sickness, and shows a payment period of five years (these are shown in the schedule). Example: You're hospitalized due to a critical illness and require extraordinary medical treatment. The insurance company pays total benefits of $500,000 for charges made during the first 10 months. There is no further coverage for this sickness. The maximum payment has been reached. Another example: You have a continuous illness that requires medical attention, including doctor's visits, periodic hospitalization, and prescription medications. While not life threatening, the condition doesn't get any better and the charges continue to mount. The insurance company has paid $75,000 in benefits over a five-year period. There is no further coverage for this sickness because the payment period has expired.

GENERAL AGREEMENT -- We agree to issue this policy to you because you paid the premium shown in the application. We rely on the application you made. The application is a part of this policy. All dealings are between you and us. This policy covers the persons named in the application and any child who may be born to you during the policy term.

In the general agreement, the insurance company states that it relied on information given in the application and issued the policy because you paid the first premium. Coverage applies only to each person named in the application and to any child born during the policy term.