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Scott Smith Licensed Broker

By: Scott Smith


Critical Illness Insurance


Medical bills are one of the top reasons for bankruptcy. Getting a critical illness can not only prohibit people from working but also cost thousands of dollars that you cannot recoup because you can't work. Critical illness insurance helps cover these costs so you can focus on getting better.

What is Critical Illness Insurance?

This type of insurance is sometimes also called catastrophic illness insurance. This is because it provides additional financial support for medical emergencies like a heart attack, stroke, or cancer. Medical treatment during these emergencies and others can cost thousands of dollars and can easily devastate a family's finances, either by destroying their savings or putting them deeply into debt. These costs can be so exorbitant that they often exceed the coverage offered by most health benefits packages.

A prolonged illness like cancer, with many treatments, surgeries, and hospital stays, can easily cost more than what any benefits plan can cover. This insurance offers a one-time, lump-sum cash payment that helps cover the overrun costs when other benefits fall short.

Features and Benefits

These insurance policies are usually very affordable, coming at a lower monthly price. However, the trade-off is that these more cost-effective prices often go along with a limited scope. The list of emergencies or illnesses covered can vary.

Critical Illness allows the insured to receive money in advance should the insured be determined by a licensed physician to have suffered a critical health condition such as cancer, heart attack, stroke, a major organ transplant, end-stage renal failure, Amyotrophic Lateral Sclerosis (ALS), blindness, or paralysis due to loss of two or more limbs. 

Unfortunately, no one knows when they may be facing the reality of dealing with a Critical Illness. When faced with a Critical Illness, both medical and non-medical expenses arise. These out-of-pocket expenses, such as lost wages, expenses not covered by your medical insurance, and home health care can come along during stressful times, and they can be damaging financially. In these situations, you may find yourself without sufficient savings and forced to use other assets to help cover costs.

Your need for additional cash may be great if you are diagnosed with a Critical Illness. Lost income and medical expenses could take a toll on your family budget. Some Life Insurance polices allow you to add an accelerated Living Benefit Rider that can provide % of a lump sum payment if you are diagnosed with one of the following covered illnesses. 

Heart Attack
Terminal Illness
Kidney Failure
Major Organ Transplant
HIV Contracted

How is Critical Illness Insurance Different from Disability Insurance?

Disability insurance is another essential insurance for everyone, and most people should have both. Disability insurance helps cover the income a person loses when they can't work because of illness or injury, often in recurring payments every month. Critical illness insurance is a cash payment that helps pay for the medical costs associated with that illness or injury, often in a lump sum.

Why Get Critical Illness Insurance?

This insurance ensures that people can get the medical treatment and attention they need in the event of an emergency illness like a heart attack, stroke, or cancer. It's important to note that this insurance pays out in a lump sum, and its use is up to the policyholder. They can use it for whatever they want. For example, it can be used for paying off medical debts and treatments. Or securing life-saving treatments in another state that might not be available where you are. Critical illness insurance ensures that money is not a deciding factor in your healing from a critical illness. Instead, it offers reassurance that you can financially cover the expense even if you become very sick.

Who Should Get This Insurance?

Critical illness insurance covers anyone who may not be able to pay substantial medical bills in the event of a serious illness. It's a safety net, ensuring that life-threatening diseases like cancer, stroke, or heart attack don't financially ruin people. People who should get critical illness insurance include:

  • People who need to pay bills

  • Those who need to work for their income

  • Those who don’t want to drain their savings for medical bills

Get a Quote

Don't let money be the deciding factor on whether you get a life-saving medical procedure or whether you have debt consuming you after a serious illness. Critical illness insurance helps protect you from those crushing concerns. Visit our website for more information on this insurance or get a critical insurance quote.

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