How critical illness insurance works

The top 3 killers in the US are heart disease, stroke, and cancer.

Of course, not everyone who is diagnosed with these conditions will die. Unfortunately, many people get one of these in some form and are left to wonder how they will pay for the care they need (meaning afford their full deductible, time off work, or other unanticipated expenses). This is where critical illness coverage can play a big role in filling the gap that major medical health insurance does not cover.

Two kinds of critical illness plans

1. Scheduled benefit

A scheduled benefit critical illness insurance plan will only pay for your medical expenses according to a schedule of benefits, or limitations, based on the type of condition you are diagnosed with. Under this type of plan, if you are diagnosed with a rare form of cancer, for example, the policy will pay out a fixed amount based on the type of cancer or the number of days you spend in the hospital. These plans will end up paying less in benefits because the chances are pretty good you may not spend much time in the hospital when you are first diagnosed. I am not a fan of these plans for that reason. But they can be less expensive, too.

2. Lump-sum benefit

The second type of plan just pays the lump sum policy amount when you have a covered event or diagnosis. Then you get the full amount of your policy to do with what you want. This means it can cover medical expenses not covered by your health insurance deductible, or pay bills, or make a house payment, or whatever. This type of plan ends up paying more because it does not have restrictions on the benefit amount. Rather, the amount is selected by you and is what determines your premium.

Tips for buying critical illness insurance

Other things to look out for are the number of conditions which will trigger the policy paying out. Most include heart attack, stroke, and cancer of the organs. Many policies include just these three things, and if you have anything else come up, you are out of luck. The best policy in my opinion, for the price and benefit type, includes coverage for all of the following types of critical illness events:

• Major organ transplant
• Terminal illness
• Advanced Alzheimer's disease
• Loss of independent living
• Loss of limbs
• Major burns
• Paralysis
• Coronary bypass surgery
• Heart valve replacement or repair surgery
• Aortic surgery
• Angioplasty

Plans I can offer

I have plans that include the broadest definitions of critical illness. This means you will see the policy pay out under a greater number of critical illness situations. These policies feature the ability to select a variable amount of coverage to meet your needs. Other plans feature a fixed amount of critical illness coverage, which has several benefits to go along with it, such as free vitamins, access to a doctor by phone, and discounts on lots of other services that small business owners could find valuable.

To get a quote on a critical illness insurance plan or to request more information, use the button below to send me a note through the contact form.