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Last Updated on July 17, 2024 by Insurdinary Editorial Team | Fact Checked by Rhonda Gary -->
Could a life-altering medical diagnosis quickly flip your world upside down? As you come to grips with this medical condition, have you considered that you might have to take time off from work for testing and treatment or even stop working altogether due to your health? With increased medical expenses and a lack of steady financial support, it’s not unthinkable that families end up in debt or unable to take care of their overall living expenses and health.
According to a recent report by NPR, over 100 million people in the United States are living with medical debt. The same report shares that excessive medical debt is responsible for 17% of adults declaring bankruptcy or losing their homes, 48% using up all of their savings, and 63% cutting out necessities to save money.
Reliable health insurance can certainly help with medical bills, but it's not always enough. You and your family need monetary backing, especially during your time of need, and a critical illness insurance policy provides a solution. Read on to learn how.
Critical illness protection’s supplemental insurance coverage can provide cash benefits to the policyholder for financial support after a life-changing medical diagnosis. You can buy a critical illness policy as an additional feature of your health insurance policy. You can also get accident insurance to cover costs that the primary insurance policy may not include.
A single critical illness diagnosis can put a significant financial strain on a family, even if you all enjoy great health coverage. With critical illness protection, your insurance provider will offer you a big payout to cover everything, from out-of-pocket medical expenses to groceries. Still, insurance providers stipulate the following:
For instance, many insurance companies pay benefits as one lump sum, while others opt for payments per treatment or large monthly payments.
Not all insurance agencies cover all life-altering medical conditions, nor do they cover the same ailments. The range from what is acceptable for coverage and what isn't is vast. In general, most insurance providers offer financial support through the following critical illnesses:
Do you have a pre-existing condition? You likely won't get coverage for it with this kind of insurance. Some policies also won't provide cash benefits for recurring conditions.
For example, you could get financial aid for your household with your critical illness policy following a cancer diagnosis but you may not get that benefit if the cancer reappears after remission.
You could buy individual critical illness protection or invest in a family policy. To qualify, you must meet the insurance company's underwriting guidelines, which often include medical questions to determine your current health status and risks for future illnesses.
Age and pre-existing conditions are also common with this type of insurance, so you might not qualify if you have a specific chronic condition or are over 60 or 70 years old. If you’re eligible, a policy will cover you and possibly your spouse and children, too.
A critical illness policy through group insurance from your employer could be guaranteed issue insurance. In that case, the underwriting requirements regarding health status and pre-existing conditions will be more lenient.
Getting financial support from a critical illness insurance policy is similar to getting benefits from general coverage. Once you buy the policy, you'll make monthly premium payments to keep the protection active. A diagnosis of a life-altering medical condition could happen at any time, so you’ll want to keep the insurance in place.
If you get a covered diagnosis, you can file a claim with your insurance provider for the cash benefit. Some insurers require policyholders to wait up to 90 days after getting a life-altering diagnosis, but group policies don't usually have that stipulation. You'll then get the cash payout to cover your expenses—the insurer usually pays out quickly.
The price of premiums for critical illness insurance varies from person to person. Agencies consider various factors to determine how much each policyholder must pay. The most common factors include the following:
Many critical illness policies offer cash benefits. As the policyholder, you could be eligible to get 100% coverage if you have a covered medical condition. Spouses can usually claim up to 50% of the benefits and children may have 25% coverage on your policy.
Critical illness insurance offers financial support and peace of mind, making it an attractive option for people who value financial stability when medical disasters occur. Without this economic assistance, you would likely have to bear the brunt of your medical expenses, even with good health insurance.
In addition, once you get financial help from your critical illness policy, there are no limits as to how to spend this money. Unlike health insurance that pays medical professionals and institutions to cover you, your critical illness policy’s cash benefit is yours to allocate as needed. This is fantastic flexibility in your time of need, including if you want to cover the following:
With this cash benefit, you can replace lost income or supplement what you have. It might help you avoid spending all of your savings and going into debt.
It's easy to mistake critical illness insurance for health insurance, but both types of insurance function differently. Despite offering some form of financial relief surrounding your health and medical conditions, they exist for different purposes.
For example, with health insurance, your insurer will pay for you to see doctors, nurses, and specialists for testing, routine visits, and treatments. The money goes directly to the medical provider, hospital, or clinic. Alternatively, your insurer may offer reimbursements for what you pay out-of-pocket for certain medical services.
On the other hand, if you or a family member on your policy receives a covered critical illness diagnosis, your insurance provider will pay you. The amount of money you get depends on your policy, but it will provide you and your family with substantial financial support as you navigate the sudden change in your health status.
Has your employer offered critical illness insurance as part of the company’s group benefits? It's worth considering. These plans tend to cost less through employers.
As with all insurance plans, the more coverage you have, the more you'll pay. However, the monthly price could be insignificant in comparison to the debt you rack up if you fall ill without this extra financial protection in place.
For the most comprehensive fiscal support, you might consider different insurance types to cover your family as much as possible.
For instance, you could pursue disability insurance in addition to buying critical illness insurance. This replaces a portion of your income if a medical problem prevents you from working.
Critical illness insurance could be what you need to ensure you and your family can face tough times after a serious medical situation arrives. It doesn't matter whether you choose to purchase a standalone policy or employment-related coverage; you, your spouse, or your children will have economic support for any covered life-threatening diagnosis.
As with any insurance policy, it's important to understand critical illness protection's benefits and potential drawbacks. For instance, you may have an insurance provider that doesn't cover many catastrophic ailments or one that puts strict limitations on its policies, such as waiting periods and health screenings. Yet, you could also get a substantial payout if you develop a covered condition so that you can afford living expenses, extra treatment, and time to recover or adjust to your new medical situation.
If you're ready to guarantee your access to future financial support, why not start searching for a critical illness policy on Insurdinary’s helpful quote comparison platform? We can provide the best quotes from leading insurance agencies so that you can select an option that suits your needs. Turn to Insurdinary for your insurance needs, and then fill out our convenient online form for free, no-obligation insurance quotes.