What to Know About Critical Illness Insurance

When somebody suffers a health emergency such as a heart attack, stroke, or cancer, the first concern is getting the medical treatment they need to try to recover. Unfortunately, a sudden medical emergency can leave a survivor with insurmountable expenses related to their illness, leaving them in a different kind of crisis. Medical bills are one of the top reasons people go bankrupt in the United States, understandably so—it can be difficult, if not impossible, to budget for a sudden avalanche of medical costs from an emergency illness.

Critical illness insurance, developed in 1996, was created to provide additional coverage for medical emergencies to help cover a patient’s financial needs from higher medical bills and other related expenses not paid for by traditional medical insurance. This can help spell the difference between financial catastrophe in the wake of an illness or being able to focus on recovery with peace of mind, knowing that the bills will be paid.

How Does Critical Illness Insurance Work?

Critical illness insurance is focused on illnesses that tend to require extensive medical treatment and which can result in rapidly ballooning costs, especially for those who have high-deductible insurance plans. Such plans typically trade a lower monthly premium for patients shouldering a greater share of the cost of actual medical treatment, which does not work in their favor when serious illness strikes. For a relatively low cost, critical care insurance provides a benefit in the event of specific medical emergencies, such as:

• Heart attack
• Coronary bypass
• Stroke
• Organ transplant
• Renal failure
• Cancer

Critical illness insurance can cover expenses that traditional health insurance does not, such as deductibles and copays. Nonmedical expenses like transportation to medical appointments, child care, rent or mortgage payments, grocery or credit card bills, and more can also be paid for with critical care insurance benefits.

How much a policy costs will vary according to the amount and extent of coverage; the age, sex, and health of the insured party; and the insured’s family medical history. An individual may be eligible to get coverage from a few thousand dollars up to $100,000, depending on the terms of the policy. When coverage is triggered, the insured will receive a lump sum payment that they can use as they see fit to meet their medical needs and pay their bills.

Understanding the Limits of Critical Illness Insurance

Critical illness insurance is meant to be used for in situations of medical crisis, so policies tend to be limited to certain specific illnesses. It is important to be aware of the exceptions—for example, some types of cancer might not be covered, and chronic illnesses are frequently exempted. A recurrence of an illness may not be covered, and some policies expire when the insured reaches a certain age or have age reduction schedules that reduce the potential payout as the insured gets older. Reviewing the specific terms of a potential policy is essential to knowing the circumstances under which coverage is triggered and ensuring that it will provide the right benefit if needed.

How Can I Get Critical Illness Insurance?

Sometimes employers may make critical illness insurance available, understanding the tremendous negative financial impact an emergency illness can have on their employees. Those who do not have the option to purchase such insurance through their job can also purchase an individual policy.

Who should consider getting a critical illness policy? Not simply those with a family history of a specific covered illness. Anybody who would struggle to meet their full medical deductible if they had to cover it all at once, or who would be thrown into financial hardship if they couldn’t work for weeks or months as they recovered, should consider one.

Helping You Find the Right Critical Illness Plan

Nobody should have to face financial ruin from a sudden, serious illness. Medical Insurance Today can help you find the right critical illness insurance policy to bridge the gap between what your medical insurance provides and what your family needs in a time of crisis. Our licensed agents are here to give you clear answers to your questions—in English and Spanish—so you can get the coverage you need. Contact us here today to get started.