Critical illness insurance is a type of coverage that provides a specified dollar amount or lump sum payment if you are diagnosed with a specified life-threatening condition e.g. cancer or heart disease- specified being the important term, because if your illness isn't in the terms and conditions - you won't get the payment. Critical illness medical health supplemental coverage has gained in popularity due to lower costs and plan benefits.
Medical breakthroughs, and advances in patient care mean that most people have a greater chance of surviving a critical illness. The bad news is that many medical insurance plans will not pay all the costs of recovery. In most cases, traditional insurance coverage (e.g. life, health, and disability insurance) will not cover all of the income lost recovering from a critical illness, retirement and other savings, or your business.
If you develop a critical illness you may be faced with unexpected expenses:
- Private home care
- Special care needs
- Medical care not covered by a health care plan.
Your income may be adversely impacted as a result of having to work fewer hours or making a career change due to your illness. Struggling to meet these additional expenses, combined with meeting your everyday financial obligations could create a stressful situation and may even affect your recovery.
Critical illness supplemental insurance can help ensure that you and your loved ones will have monetary resources in the event of a critical illness to help cover mortgage payments, out-of-pocket medical expenses or medical treatments from out- of-network specialists, and necessary home renovations - resources to spend any way you wish.
Critical illness insurance provides you and your family with the "Peace of Mind" in knowing that unforeseen and catastrophic situations can be overcome.
THE FOLLOWING RESEARCH SHOWS THE IMPACT ON MANY AMERICANS.
- According to the U.S. Department of Housing and Urban Development, 50% of home foreclosures are the result of the homeowner suffering from a critical illness.
- American Heart Association estimates Americans paid about $368 billion in 2004 for heart disease related medical costs and disability.
- Research shows 33% of all families deplete all or most of their savings because of a serious illness.
Determine Your Need for Critical Illness Insurance
Who needs critical illness insurance?
It's difficult to predict if and when you will suffer a critical illness, however, if you relate to one of the following descriptions, you should consider critical illness insurance:
- Your high income precludes you from purchasing enough disability to meet your needs
- Your high-risk profession prevents qualification for traditional disability coverage
- You have a high medical deductible
- You don't have health insurance
- You're a parent
- You're self-employed
- You're a homemaker
- You're the sole provider for your family
Plan Details
Due to the fact that critical illness insurance pays you a cash benefit upon diagnosis of a covered critical illness or condition, you choose how to spend it. Whether it is mortgage payments, credit card payments, automobile payments, etc., you decide how to use your cash benefits.
Critical Illness Insurance Pays You:
1. LUMP SUM
2. TAX FREE
3. UPON DIAGNOSIS
You choose the amount you want. Range of lump sum paid is insurance plan specific.
Last year over 1 million Americans filed for bankruptcy. Over 48% of them, after suffering a Critical Illness.
Covered conditions
- Heart Attack
- Stroke
- Invasive Cancer
- Major Organ Transplant
- End-Stage Renal Failure
Other Illnesses:
- Advanced Alzheimer's Disease
- Paralysis
- Major Burns
- End Stage Renal Failure
- Coronary Bypass Surgery
How much does it cost?
Generally, the younger and healthier you are, the lower the premium (cost).
However, the cost varies depending on your age, medical condition, the
amount of coverage, the number of illnesses covered by the policy, and
the insurance company.
When shopping for a critical illness plan, you should consider your income, financial obligations, dependents, and health care needs.
What if I make a full recovery?
You are entitled to collect the entire benefit even if you make a full recovery.
Is long-term care insurance the same as critical illness insurance?
No. Long-term care insurance provides for personal care on a long-term basis.
(e.g., if you need supervision or assistance with daily living activities due to a chronic illness, disabling condition or cognitive impairment).
Long-term care policies generally reimburse, up to a specified limit, the expenses
incurred for various types of care, such as nursing home or home health care;
or they pay a pre-determined benefit amount on a daily or monthly basis.
Is disability insurance the same as critical illness insurance?
No. Disability insurance, also known as "income replacement" insurance, provides a monthly income replacement benefit if you become disabled and can no longer perform the normal duties of your work. Generally, the benefit is limited to a percentage of your regular income and ceases once you earn an income or you no longer meet the definition of disability in the contract.
Unlike critical illness insurance which provides the full policy benefit in a lump sum payment on diagnosis of a critical illness, long-term disability policies may have a waiting period from the onset of disability. Unlike critical illness benefits, long-term disability benefits may be affected by other income you receive or by your full recovery from the illness.
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