Insurance is there to protect you when you most need it. What if you still need additional assistance? You may want to look into a critical illness plan.
What is critical illness insurance?
Critical illness plans are sometimes called dread disease plans. They payout if you are diagnosed with a severe and critical illness. For example:
- Heart attack
- Stroke
- Cancer
- Paralysis
- Coma
- Alzheimer’s
- Bypass surgery
- Angioplasty
- Kidney failure
- Organ transplant
This isn’t a full and complete list, so make sure to check your plan carefully for specific criteria.
If you end up needing your critical illness plan, once you’ve met your elimination period, you will receive a lump sum of money. The amount is determined by the plan that you choose. It could be as little as 5,000 or over a few hundred thousand dollars. You can use this money for whatever you need. You could use it to pay for medical bills, of course, or pay your mortgage. It’s a lump sum to be used as you see fit.
How Much Does it Cost?
Some employers offer critical illness plans as a benefit. Smaller businesses that are not required to offer health insurance may do so to offer some type of protection to their employees. But remember this is not health insurance. It will only payout under specific circumstances.
The amount you pay monthly can vary widely. You will have to undergo medical underwriting and pre existing conditions will not be covered. These plans are not beholden to the same rules as ACA plans and they are not offered on the marketplace.
Factors such as your gender, health, age, and whether or not you smoke will affect the amount you pay. Your location will also come into play. And, of course, you select how much you would like in benefits. A young healthy, non smoker interested in a $5000 plan could pay as little as a few dollars per month. An older person who smokes and wants benefits over $200,000 would pay a few hundred. As always, shop around.
Is it Right for Me?
Insurance is there for the “what if”. So, of course you will be more protected if you have some type of critical illness plan. The likelihood of needing one goes up as you age. However, once you are over 70, your plan will only pay out 50% of its benefits. So, bear that in mind.
If you don’t have extensive life savings to pay large medical bills or living expenses if you find yourself unable to work due to illness, you may want to consider a critical illness plan. If you are the sole breadwinner, this may also be a good idea. Also, if you have health insurance but you have a high deductible or limited benefits, it may be good to supplement your health insurance with a critical illness plan.
Call us at iHealthBrokers at 888-918-0518 or schedule an appointment today. Our services are 100% FREE.
Jesse Smedley is the Principal Broker for iHealthBrokers and the founder, president, and CEO of Smedley Insurance Group, Inc. and iHealthBrokers.com. Since the inception of SIG in 2007, Jesse has been dedicated to helping people save money on their health insurance by providing them with resources to educate themselves on all their health insurance options, both under age 65 and Medicare beneficiaries. He is featured in many publications as well as writes regularly for expert columns regarding health insurance and Medicare.
