Critical Illness Insurance Plans
When we begin to talk about insurance, most of us tend to think of things like homeowner’s, car, or basic health insurance. Critical illness insurance most likely isn’t one of the types of insurance that comes to mind. Who wants to make bets against catastrophic events?
It makes sense — we often don’t want to think about the scarier health-related risks in life, especially not critical illness. However, this human trait, to turn away and pretend it can’t happen to us, leaves us vulnerable and unprotected should we be diagnosed with a critical illness.
The reality is that, by the time we reach our sixties, one out of every four of us will be out of work due to illness or injury for longer than our accrued paid time off allows. Consider also that many people in today’s economy are working as self-employed or have no options for paid time off! The other major concern is that many times, there are indirect costs associated with treatment of critical illnesses, and those are not covered by your regular health insurance.
What Is Critical Illness Insurance?
Critical illness insurance pays the insured a lump-sum cash amount if you are diagnosed with any one of the critical illnesses addressed by your policy, even if you make a full recovery. The payment is a tax-free benefit and is paid directly to you. It is not earmarked for any medical provider; you can do whatever you wish with the funds. Benefits commonly range from $5,000 to $100,000 for covered illnesses, and a claim simply requires a doctor to confirm the diagnosis.
What Counts as a Critical Illness?
The major critical illnesses are:
- Cancer
- Heart attack
- Stroke
Other critical illnesses can include:
- Blindness
- Multiple sclerosis
- Organ transplants
- Kidney failure
- Paralysis
- Heart valve replacement
Cancer
The American Cancer Society reports that in 2023:
- An estimated 1.9 million new cases of cancer will be diagnosed in the United States.
- 609,820 people will die from a form of cancer.
Stroke
According to the American Heart Association and the American Stroke Association:
- Someone in the U.S. has a stroke about once every 40 seconds.
- Stroke accounts for one of every 20 deaths in the U.S.
- Stroke kills someone in the U.S. about every four minutes.
Heart Disease
- Heart disease (including coronary heart disease, hypertension, and stroke) remains the number one cause of death in the U.S.
- Coronary heart disease accounts for one in seven deaths in the U.S., killing over 360,000 people a year.
- About 790,000 people in the U.S. have heart attacks each year. Of those, about 114,000 will die.
Cited from: https://healthmetrics.heart.org
Ask yourself these questions…
- Why do I need critical care insurance?
- If I already have disability insurance, should I get critical illness insurance as well?
- If I don’t have either, which one is the best option? Do I need both disability and critical illness insurance?
These statistics are scary, and that’s why guarding your income with critical illness insurance is vitally important.
Which Critical Illness Policy Is Right For You?
Each critical illness policy has specific terms and conditions, which must be reviewed very carefully. Make sure you understand which types of illnesses are considered critical and will qualify for payment.
This is when a licensed insurance agent can be a valuable resource. They can help you understand the language in your policy, help you make sense of the specific terms and conditions, and guide your decision around which critical insurance policy is right for you.