Is critical illness insurance worth it?
If your benefits enrollment is coming up, you may be asking yourself if critical illness insurance is worth buying. Did you know that 1 in 3 deaths in the United States is due to cardiovascular disease1 and that more than 800,000 people in the United States die from cardiovascular disease each year?2 With statistics like these, critical illness insurance may be beneficial for many. Read on to learn about critical illness insurance and why it’s something you and your family should consider.
Why Critical Illness Insurance is Important
Some people assume they’re fully protected with their standard major medical health insurance plan, but when the unexpected happens, many people realize they are not fully covered. The treatment costs from a life-threatening illness could be more than what your major medical health insurance plan will cover. In the event of a big health emergency like those listed below, critical illness insurance could help you protect your finances. These illnesses require extensive medical care which may result in very costly medical bills. If you don’t have an emergency medical fund or a health savings account, paying these bills out of pocket could deem very difficult.
For example, many major medical health insurance plans will come with deductibles. Once you have met your deductible, many plans will not pay 100 percent of the total cost for the procedure. Instead they will pay 60 to 80 percent of that total cost. If your treatment costs $20,000, you might still receive a bill for $4,000 to $8,000 even with insurance.
Critical illness insurance can help you fill the gaps from other coverage. This policy provides a one-time lump sum payment to the insured. This money can be used to pay for out-of-pocket health care costs or costs related to the illness.
Critical illness insurance typically covers but is not limited to the following medical emergencies:
• Heart attack
• Coronary artery bypass surgery
• Permanent damage due to a stroke
• Permanent paralysis resulting from a covered accident
• Major organ failure
• End stage renal failure
Critical Illness Insurance Benefits
The benefits you receive from a critical illness insurance plan can go beyond helping pay for medical bills. The money can be used for non-medical expenses related to the illness including transportation expenses, such as transporting to and from treatment centers, retrofitting vehicles to carry scooters or wheelchairs and installing lifts for patients who can no longer use staircases. This also includes daily living expenses, like paying your bills, groceries, and car payments, so you will be covered if you are unable to work. Your benefits can also be used to support your family like paying for childcare.
With AF™ Limited Benefit Critical Illness Insurance, we offer a wellness screening benefit with many critical illness plans. This benefit pays a lump sum when a covered person receives a covered health screening test. This benefit is payable for the insured and spouse, if applicable, once per calendar year for annual health screening tests. Tests include but are not limited to:
• Blood test for triglycerides
• Doppler ultrasound
• Fasting blood glucose
• Serum cholesterol
• Exercise or pharmacologic stress test
• Neuroimaging studies
Who needs critical illness insurance?
Critical illness insurance is for everyone. Life moves quick and you may not be able to prevent the worst from happening. At least 47% of all Americans are at risk for heart disease.3 Those with high blood pressure, high cholesterol and diabetes are more susceptible to develop heart disease. Although some factors cannot be controlled, such as your age or family history, there are steps you can take to help protect yourself. Help minimize the financial impact of a life-threatening disease by insuring your health, finances, and your life.
This blog is up to date as of February 2021 and has not been updated for changes in the law, administration or current events.