Should You Consider Critical Illness Insurance?
Rising healthcare costs affect everyone. A large number of Americans, whatever their insurance situation, would find it a struggle to pay for unexpected medical expenses.
Fortunately, there are options that can help to bridge the gap.
Critical illness insurance plans offer a way to mitigate costs that arise that aren’t covered by your other policies. While you may question the necessity of such coverage, taking a closer look shows just how much help they can provide.
What is critical illness insurance?
Critical illness plans don’t replace your other primary insurance. It is supplemental, helping to defray some of the costs associated with certain health issues that aren’t covered by your other policy or policies.
Here’s how it works:
- Application and enrollment. Work with an independent insurance agent to make sure the coverage you’re getting will meet your needs.
- Diagnosis. The hope is not to have to use this insurance; however, if you do receive an unfortunate diagnosis that is covered by the policy, you’ll be glad to have it.
- Benefit. You receive a one-time, lump-sum payment to use in whatever way you deem necessary. For example, mortgage payments, medical expenses, car payment or any other household expense are common uses for this benefit.
You have the ability to customize your plan according to the amount of coverage you want and the size of the deductible you’re willing to pay.
What does the policy cover?
Depending on your specific plan, the illnesses that are covered will usually include:
- Heart attack
- Coronary artery bypass
- Major organ failure
- End stage renal disease
- Severe burn
The plans will vary, but some offer benefits for more than one category of illness. You should also be aware of limitations of the policy, such as waiting periods and pre-existing conditions.
Why do you need it?
The odds are in your favor when it comes to surviving a critical illness, but your finances may not recover as well. Your primary insurance will cover the diagnosis and treatment of your illness, but there is a whole host of other costs associated. The burden of these other financial strains can have disastrous effects.
Here are some of the reasons:
- 66% of all bankruptcies are associated with medical bills.
- Four out of five cancer patients lose their income as a result of their illness.
- Critical illness can reduce a typical family’s income upwards of $12,000 a year. That’s even with having medical expenses covered.
Obtaining supplemental critical illness coverage does more than just add an extra layer of financial protection. It also provides peace of mind. You’ll gain a greater sense of security about your future should some unexpected medical event come about.
The choice is yours
No one can tell you what’s right for you or your family. Your decision to seek critical illness insurance will be a personal one that’s based on your needs. These types of choices would be easier if there was a crystal ball for you to look into in order to discern what’s around the corner for your health. Unfortunately, there’s no such thing!
What you do have is your family history, statistics and common sense. As you age, your chances of experiencing various ailments increase. This fact, combined with the rising cost of healthcare, makes a solid case for checking into supplemental coverage for a critical illness.
Seeking the expertise of an independent insurance professional can give you some clarity. The agent will have a thorough understanding of different policies and which one would best meet your needs.
Does the idea of having extra coverage for a critical illness give you peace of mind?