5 Reasons to Get Critical Illness Insurance

Posted by Consumer Coverage on October 4th, 2022

The Rundown on Critical Illness Insurance

Before getting into the details about why critical illness insurance is worth considering, we need to lay the groundwork so that you understand what critical illness insurance is. 

Sometimes called critical care insurance, sickness insurance, or catastrophic illness insurance, this is a type of supplemental policy that pays a benefit if the insured is diagnosed with a covered medical condition. 

Sound interesting? Let’s get into the reasons why critical illness insurance may be a good fit for you.

1. Peace of Mind

Life is unpredictable and you never know what can happen. As if a diagnosis with a serious illness isn’t stressful enough, they often come with large medical expenses. But a critical illness insurance policy alleviates some of that burden by paying a lump sum upon diagnosis. 

While ideally, you will never need to use it, critical illness insurance is there for those worst-case scenarios to offer financial security. 

2. You Can Use the Benefit However You See Fit

Once paid out, your critical illness benefit is your money to use for whatever your needs are. These may include: 

  • Medical bills 

  • Treatment costs

  • Supplementing lost income 

  • Covering copays and/or deductibles 

  • Transportation services 

  • Relaxation aids (massage, vacation, etc.)

Critical illness insurance doesn’t overwhelm you with red tape; it simply gives you the financial relief you need.

3. Covers a Variety of Illnesses 

Each critical illness insurance plan will vary depending on the company and the type of coverage you wish to purchase. 

That said, there is a wide range of illnesses that a critical illness insurance plan is able to cover such as:

  • Cancer 

  • Heart attack 

  • Stroke 

  • Paralysis 

  • Coma

  • Alzheimer’s

  • Bypass surgery 

  • Angioplasty

  • Kidney failure 

  • Organ transplant 

Because coverage can differ greatly between plans, it’s important to understand exactly what is and what isn’t covered before you sign on to your own plan. This will ensure that you get the best critical illness insurance coverage for your situation. 

4. Can Be Purchased Individually or With a Group?

As with most health insurance plans, you can have individual critical illness insurance, or group-sponsored critical illness insurance. 

Note: with both types of critical illness insurance, the cost will increase as your coverage amount does. 

Many employers offer critical illness insurance as a part of their employee benefit programs. With these plans:

  • There’s no medical underwriting required to qualify 

  • The benefit is a percentage of the total coverage employer has purchased

  • You, your dependents, and potentially your spouse can receive coverage

  • Coverage is usually limited to certain cancers, heart attacks, strokes, and organ failure

With individual critical illness insurance, you have more selection since you will be purchasing the plan yourself. You can:

  • Adjust the number of illnesses covered 

  • Adjust the size of your benefit

  • Purchase as a rider to an existing health plan 

It’s important to shop around and get a critical illness insurance quote from multiple providers to ensure you are finding the best value plan around. 

5. Guaranteed Renewability for Life 

Once you qualify for critical illness insurance, you can keep your coverage as long as you’d like. This means you cannot disqualify yourself from critical illness insurance. 

Once you reach the age of 70, your coverage is still guaranteed to be renewable, however, the benefit will be reduced by half. This is done as a reflection of the increased risk your insurance provider takes on.

The Bottom Line

Critical illness insurance has many benefits, and it could be a very good fit for you. However, while many people will appreciate its flexibility and security, it might not be what you’re looking for and perhaps a more comprehensive health insurance plan would be better. 

No matter your situation, whether you’re seeking health insurance for a child only or in need of a more comprehensive plan, it’s critical you find a plan that gives you peace of mind and the coverage you need.

Doing your own research and consulting the experts will ensure you find the best health insurance possible.

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Consumer Coverage
Joined: October 4th, 2022
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