Sterling Insurance has introduced a new insurance plan, Sterling Critical Condition, to provide lump-sum coverage plans to the insured upon diagnosis of a covered condition.

Underwritten by Sterling Life Insurance Company, the plan provides coverage for up to 11 critical illnesses, including cancer, stroke, heart attack, paralysis, loss of sight, loss of speech, deafness, benign brain tumor, major organ transplant, as well as severe burns and kidney failure.

Equipped with 24 different options, the plan was developed in an effort to pay for out-of-pocket expenses that are not covered by major medical plans.

Sterling Insurance Product Development vice president Gerald Riley said out-of-pocket expenses, such as loss of income due to missed work, travel expenses, childcare expenses or payments for experimental or alternative treatments are generally not covered by major medical insurance.

”Sterling’s Critical Condition plan is specifically designed to pay for such expenses, above and beyond what is covered by a major medical plan," Riley added.

The plan pays the sum directly to the insured, upon diagnosis or treatment for a covered condition, which can be used for making mortgage payments, replacing lost income from work, co-payments and deductibles, reducing financial burden of a critical illness.

Three types of lump-sum coverages, including cancer only, critical condition only and combination cancer and critical condition, are offered by the policy in most US states.