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Critical Illness Insurance

According to National Public Radio (NPR), 100 million US citizens have medical debt. Most of them are unable to afford costly medical treatments when they become ill. Critical illness insurance helps people protect against the financial burden of medical costs associated with severe illnesses. It is similar to life insurance but specifically covers medical costs incurred from a major illness or condition.

Why Get Critical Illness Insurance When You Have Health Insurance?

People often think they do not need critical illness insurance because they already have health insurance. However, the exorbitant costs arising from critical illnesses are much higher than what your health insurance might cover.

In that case, you will be left with large medical bills to pay. That is why it is essential to complement your health insurance with critical illness insurance.

The insurance can help cover the cost of these 10 critical illnesses:

  • Deafness
  • Heart attack
  • Cancer
  • Blindness
  • Renal failure
  • Stroke
  • Major organ transplant
  • Coronary artery surgery
  • Paralysis
  • Multiple Sclerosis

These illnesses require long-term care and expensive treatments, which most people cannot afford without the help of insurance. If you do not have money saved up for a rainy day or a health savings account (HSA), you will have to pay out of pocket for the treatments.

Critical illness insurance allows you to get coverage for a lump sum amount or regular monthly payments, depending on your policy. Likewise, coverage also differs based on the policy. You can get anything from a few thousand dollars to $100,000 and above.

What Does Critical Illness Insurance Cover?

That depends on the insurance company. Most policies do not have any restrictions and will pay out a lump sum of money. Some policies will only cover the cost of treatments related to a critical illness and the expenses associated with recovery.

Examples of covered expenses include hospitalization, medication, and doctor’s visits. Some policies cover home care services, physical therapy, and medical equipment. Typically, you can use the money for the following:

  • Medical Bills: The illnesses listed above are all serious and can lead to high medical bills. Critical illness insurance can cover these costs so that you do not have to use your personal savings.
  • Co-Pays: Critical illness insurance can cover hospital and doctor visit co-pays and the cost of any prescriptions you might need.
  • Transportation Expenses: If you need to travel for treatments or visit specialists, critical illness insurance can cover the cost of transportation.
  • Non-Medical Services: Some policies cover non-medical costs while you recover. For instance, they may cover pet care, childcare, meal delivery, yard work, etc.

When Should I Buy Critical Illness Insurance?

It is vital to purchase critical illness insurance when you are young and healthy. That way, you can lock in affordable rates and ensure that you will be covered if something happens to your health.

You should also consider getting a critical illness insurance policy before you have a pre-existing medical condition if your family has a history of certain illnesses. Ideally, you should purchase your policy as soon as you can to ensure that you are covered and have peace of mind.

Additionally, if you are self-employed or work for an employer that does not offer a group critical illness insurance plan, you should look into individual coverage.

Factors Affecting Critical Illness Insurance Costs

The cost of critical illness insurance depends on several factors. Here are some of them:

  • Your Age
  • Number of illnesses the plan covers
  • Lifetime benefit limit
  • Your health-risk factors and general health

The rates will also differ depending on the type of plan you select. For instance, you can choose between an individual, family, or a couple plan.

Critical Illness Insurance Offers Financial Protection

The American Journal of Public Health reports medical bills to be a significant cause of bankruptcy in the US despite the Affordable Care Act. Critical illnesses, such as cancer or multiple sclerosis, can be exceptionally costly and create a long-term financial burden for families.

Fortunately, critical illness insurance can be a helpful tool to provide financial relief in the event of a severe medical diagnosis. Besides a lump sum benefit, the insurance may also provide dependent coverage for children or a spouse.

Therefore, if you want to secure your family’s financial future, critical illness insurance is one of the most effective ways to do it. It also gives you peace of mind knowing that if a critical medical diagnosis arises, your family will have the financial resources to cover the costs.

Get In Touch to Learn More About Your Insurance Options

If you have any questions about whether or not you need critical illness insurance, I can help. As a critical illness insurance agent, I can help you understand your options and find the right coverage for your needs.  Contact me today to discuss your insurance options.

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