Do I Need Critical Illness Insurance?

Critical illness insurance is a type of healthcare insurance that pays you a lump sum if you are diagnosed with a severe illness. It is typically referred to as a supplemental insurance. Unlike standard health insurance, which pays the costs of medical procedures to the doctors or hospital, critical illness insurance will pay cash directly to you. You then can use the money from critical illness to pay for anything you want. These policies are purchased and paid for separately from normal health insurance, though it can be offered through an employer or by the same companies that offer health insurance

Though you can use your payment however you want, there are restrictions on how much you will receive and which illnesses are covered. The types of illnesses that are covered are listed in the insurance policy. In some cases, the amount you receive will vary based on the illness, with certain diagnoses receiving a 25%, 50%, or 100% benefit payout. They also come with a list of illnesses that are included in the policy. Each policy will outline:

· Definitions for the diseases or conditions covered

· When you qualify for a payout

· If there is a waiting period before you receive your benefit

· What percentage of your total benefit will be paid

· What happens if the illness occurs a second time

Once the insurance company pays your benefit, you can use the money to cover your personal or healthcare costs during treatment, such as:

· Childcare expenses

· Living expenses during recovery

· In-home care

· Health insurance deductible

· Uncovered treatment costs

· Travel to and from treatment

What Does Critical Illness Insurance Cover?

The most basic critical illness plans cover cancer, heart attack, and stroke, as these are the most common critical illnesses and leading causes of death worldwide. These plans can include many illnesses, including:

· Heart transplants

· Coronary bypass surgery

· Angioplasty

· Renal failure

· Organ transplants

· Alzheimer's disease

· Multiple sclerosis

· Cystic fibrosis

Policyholders diagnosed with a critical illness can face financial hardships, even when they have comprehensive insurance coverage. Before purchasing critical illness insurance, consider:

· What is your risk for developing a critical illness in the next 5-10 years?

· Is anyone else in your family at risk of developing a critical illness?

· What does your regular health insurance cover?

· Will you be able to maintain your standard of living if you are unable to work?

· How can you prepare for unexpected expenses?

Once you answer these questions, contact your Advisor for Help!

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