Critical illness insurance, sometimes called catastrophic illness insurance, is a way to protect you and your family financially if you experience a specific health emergency, such as a stroke, heart attack, or cancer. This medical plan may be what prevents you from draining your emergency funds for medical care. Above all, your health must be cared for; but do you have the plan to pay for the worst-case scenario?
Critical Illness Insurance Coverage
Critical illness insurance provides coverage if you experience a heart attack, stroke, organ transplant, cancer, or coronary bypass. You can use the payments from your critical illness policy to pay for these medical costs, which often come with bills way beyond what your health insurance is willing to pay.
Any of these covered medical events can significantly disrupt your life and prevent you from working for some time. Your critical illness insurance will provide a set payment for each condition you encounter, which may be the difference between keeping your bills paid and maintaining your family’s quality of life.
You can also use the money from your critical illness insurance to pay for nonmedical costs, such as child care, transportation, lodging, and other expenses that come along with the impact of a vital diagnosis.
How Much Can I Expect to Receive
The lump sum your policy pays you will vary based on your policy limits and the particular procedure or diagnosis you receive. The amount you can expect to receive may depend on:
- The Extent of Your Coverage
- Your Age
- Your Biological Sex
- The State of your Health
Read the fine print of your policy in detail. You may not be covered for every incidence of critical illness, such as if you have a second stroke or heart attack. Your coverage may end once you reach health milestones or a set age. Know what you are signing up for to help plan for these events.
Advantages of Critical Illness Insurance
Critical illness insurance can not only help you afford your medical expenses but can help you stay afloat financially if you experience a heart attack, stroke, cancer, coronary bypass, or organ transplant. The peace of mind this policy can give you as an emergency plan cannot be overstated.
Payments from critical illness are not dependent on your current health insurance coverage, meaning that you may be left with funds more significant than your medical expenses if you have excellent health insurance. Any leftover money can be used as needed to pay for the expenses of daily living, the costs of transportation and lodging, mortgage payments, and much more.
For low monthly premiums, you can secure a financial safeguard to protect you in the case of a significant medical emergency. When you purchase critical illness coverage through an employer, you can expect costs to be even lower.
Who Could Use Critical Illness Insurance
Medical bills for these covered events can quickly bring you to bankruptcy if you have not planned financially. Are you a good candidate for critical illness coverage?
People with a family history of covered conditions are particularly well suited to these policies. These plans are usually held by people aged 40 or older. Keep in mind that many plans will limit the coverage you can receive or will stop covering you once you reach a certain age.
Suppose you don’t have a health savings account (HSA) ready to help pay for such medical emergencies. In that case, critical illness insurance can be the source of funds you need to prevent medical bankruptcy.
Suppose you already have a life insurance policy. In that case, you may be able to add a critical illness rider that provides this same coverage.
You are wondering whether critical illness insurance is for you. Let’s plan a personalized conversation about your needs and budget.