If you’re lucky, you’ve probably never had to use critical illness insurance. You’ve maybe never even heard of it. But in the event of a big health emergency, such as cancer, heart attack or stroke, critical illness insurance could be the only thing protecting you from financial ruin.
Many people assume they’re fully protected with a standard health insurance plan, but the exorbitant costs of treating life-threatening illnesses are usually more than any plan will cover.
•Critical illness insurance provides additional coverage for medical emergencies like heart attack, stroke, or cancer.
•Because these emergencies or illnesses often incur greater than average medical costs, these policies pay out cash to help cover those overruns where traditional health insurance may fall short.
•These policies come with relatively low cost, however the instances that they will cover are generally limited to a few illnesses or emergencies.
Because these illnesses require extensive medical care and treatment, their costs can outstrip a family’s medical insurance policy quickly.
If you don’t have an emergency fund or health savings account (HSA), you’ll have an even harder time paying those bills out of pocket.
Many people are now choosing high-deductible health plans, which can be something of a double-edged sword: Consumers benefit from relatively affordable monthly premiums, but could find themselves in a real pinch if a serious illness were to strike.
Critical illness insurance can pay for costs not covered by traditional insurance. The money can also be used for non-medical costs related to the illness, including transportation, child care, etc.
You can purchase critical illness insurance on your own or through some employer benefit plans.
Part of what makes these policies appealing is that they generally don’t cost a lot.
Some smaller plans run as little as $25 a month, which looks like a bargain compared to the cost of a typical, low-deductible health insurance policy.
The more illnesses that are covered on your plan, the more you’ll pay in premiums. A 45-year-old female with an individual, cancer-only plan may pay $40 a month for $25,000 of coverage. That same woman may pay twice that a month if she expanded the coverage to include coronary illnesses, organ transplants and certain other conditions.
The Bottom Line
Since medical bills are a common cause of bankruptcy in the United States, protecting yourself against that fate should be given consideration, especially if you have a family history of any of the illnesses mentioned above.
Critical illness insurance can alleviate financial worry in the event that you become too sick to work. It provides flexibility in that the money paid out can be used as you wish, to cover a wide variety of potential needs.
There are some drawbacks and stipulations to this type of insurance coverage, though. As with all types of insurance, you should shop around to find the policy that best meets your needs and situation.
Let me know if you have questions and want to learn more.
Elbert @ 404.335.8798