Critical Illness Insurance is a type of life insurance product that will pay a lump sum benefit if you have a qualifying condition.
With advances in medicine, it is becoming more likely that people who experience a critical illness qualifying condition will survive. This is fantastic news. However, experiencing major illnesses such as a stroke, heart attack or cancer can still cause financial difficulties for an individual and their family. Most term life insurance policies do not pay a financial benefit while the insured is ill and receiving treatment.
Critical illness insurance lump sum benefits can be used to replace income, pay for health insurance deductibles and other costs not covered such as travel or out of network specialists.
How can you get a critical illness insurance policy?
Critical illness insurance can be obtained either through:
- An employers group benefit plan – These critical illness insurance policies are generally guaranteed issue and cover an individual and their family regardless of prior health history. However, they do not cover pre-existing conditions.
- An individual underwritten critical illness policy – Purchased through a life insurance agent like those at BuyLifeInsurance.Miami
- As a supplement to various life insurance policies – Various term life insurance and permanent life insurance policies carry living benefit inclusions that will pay a lump sum for a qualifying critical illness events. Some of the companies that have these living benefits are TransAmerica (Trendsetter term), Columbus Life (Universal Life) and Penn Mutual (Whole Life and Universal Life Products.)
How much critical illness insurance benefit can someone buy?
Critical illness insurance purchased through an employer group benefit plan are typically between $5,000 – $50,000. Critical illness purchased from a life insurance agent can be as low as $10,000 and as much as $1,000,000.
Why does someone need critical illness insurance?
When an individual experiences a critical illness, their world can be turned upside down. The lump sum benefit that critical illness insurance provides can be used to:
- Cover deductibles and coinsurance requirements not paid by a medical insurance policy.
- Pay for treatments not covered by a medical insurance plan in the USA or outside.
- Travel expenses to and from medical facilities.
- Day to day living expenses like food, housing and car payments.
- To pay for caretakers while insured is recovering and rehabilitating.
The fact is that critical illness insurance benefits can be used for any reason.
Do I need critical illness insurance?
You may need critical illness insurance if you don’t have the assets to cover the potential expenses you will incur if you have a qualifying event or if you want to preserve the assets that you have.
If you would like more information about Critical Illness Insurance contact us here.