How Does Critical Illness Insurance Work?
If you were to encounter a stroke, heart attack, or cancer, the consequences could drastically affect your finances. It pays to be prepared and to take out critical illness insurance just in case. What is this insurance, and how does it work?
What Is Critical Illness Coverage?
Critical illness insurance is supplemental coverage. It will help lessen the monetary impact should you develop a severe illness. It will cover many significant diseases by paying a lump sum following diagnosis. Chat with your insurance provider to see what conditions they will cover. But typically, such a policy pays out in the event of:
- Heart attack
- Stroke
- Invasive or non-invasive cancer
- Kidney failure
- Paralysis
- Alzheimer’s disease
- Major organ transplant
You may also be able to extend your policy to cover immediate family members. Or buy extra protection for an illness that may not be part of the policy.
What Costs Can I Cover?
Due to advances in technology, many critical illnesses are survivable. Yet treatment bills can be significant. Even if you have a health plan, you may still have to pay a high deductible and out-of-pocket costs. Critical illness insurance will give you the money you need to pay your costs, and you can use the cash for the following:
- Lost wages or salary
- Time off work
- Medical expenditure
- Out-of-pocket costs
- Travel and subsistence
- Home help and the like
How Can a Critical Illness Policy Help?
Consider what may happen without this type of protection in place.
For example, Eduardo was in peak condition and was pressing ahead with life decisions. He was closing on a house when a debilitating stroke struck him down. While there is never a “good” time for something like this, the disease could not have appeared at a worse time. Thankfully, Eduardo was able to turn to his critical illness coverage. He received a lump sum payout of $30,000. This helped him cover those real estate closing costs and unexpected out-of-pocket medical fees.
Sarah’s story is another great example of how a critical illness policy can help when the unthinkable should happen. Sarah had a growing family to care for, and the monthly budget was already tight. She took out critical illness coverage “just in case” and was thankful she did. Sarah developed a medical condition that led her to need coronary artery bypass surgery. Her critical illness policy kicked in and paid $5,000. This helped with monthly mortgage costs and other essentials on her road to recovery.
Get in Touch
Every 40 seconds, someone in the U.S. suffers a stroke or heart attack. No one is ever really prepared for a life-altering critical illness diagnosis. A critical illness insurance policy can help provide financial support. Fill out the form below to talk to a United Benefits Specialist to explore your options.