Does Everyone Need Critical Illness Insurance?

October 17, 2019

No one likes to think about the possibility of getting a critical illness, but it is a fact that many people are affected by a sudden, unexpected illness.  For instance, the American Heart Association reported that every 29 seconds, an American will suffer a coronary event and every 40 seconds an American will suffer a stroke. As for cancer, men have a one-in-two and women a one-in-three lifetime risk of developing a form of cancer according to the American Cancer Society.

Three surgeons operating on a patient under a blue sheet

For these reasons and the fact that these illnesses bring high medical expenses not all covered by your health insurance, everyone should have Critical Illness Insurance. Consider this additional statistic. Findings from the U.S. Census, Centers for Disease Control and Prevention, the federal court system and the Commonwealth Fund attribute unpaid medical bills as the primary cause of bankruptcy filings in the United States.

What Does Critical Illness Insurance Cover?

Financial turmoil and a potential bankruptcy stemming from a critical illness do not have to be in your future. With Critical Illness Insurance, you gain coverage for medical expenses other policies do not cover. Among the items Critical Illness Insurance covers are:

  • Deductibles,
  • Co-pays,
  • Non-covered prescription drugs,
  • Alternative treatments, and
  • Non-medical expenses including mortgage or rent payments, utility bills, car payments and insurance premiums.

How Much Critical Illness Insurance Coverage Do I Need?

Determining how much Critical Illness Insurance you should purchase, consider these questions:

  • Does your family have a history of heart disease, stroke or cancer?
  • If you suffered a heart attack or stroke or were diagnosed with cancer, do you have enough funds on hand to pay your normal household expenses such a mortgage/rent, utility bills, car payments and insurance premiums for at least six months?
  • If you do have the funds, do you really want to deplete your savings and leave yourself/your family financially vulnerable?

To determine how much coverage you need, think about your expenses to determine the face amount of coverage you will need. Critical Illness Insurance policies come in face amounts up to $50,000 and can also be purchased to cover spouses and dependent children. The cash benefit is paid directly to the insured individuals or his/her family and these funds can be used as needed.

What Features Should I Seek in a Critical Illness Insurance Policy?

Not all Critical Illness Insurance is alike. Seek out a policy that offers these important features:

  • Guaranteed Issue meaning there are no health questions asked,
  • Guaranteed Renewal which means the coverage remains in force for life as long as the premiums continue to be paid, and
  • Level Premium so that rates do not increase with age.

Best in class insurance providers also offer other value-added features to their Critical Illness Insurance policies such as a health screening benefit. It’s also important to purchase insurance from carriers with a proven track record for excellent claims handling and a consistently strong fiscal performance as attested to by their A.M. Best “A” (Excellent) Rating.

A critical illness does not have to introduce a major financial burden on your family. With Critical Illness Insurance protection, you can avoid unnecessary financial stress, damage to your credit rating, erosion of your savings, or a potential bankruptcy. For more information, visit: