What Is Critical Illness Insurance and Do You Need It?
A heart attack, stroke, or cancer diagnosis can happen to anyone — and while your health insurance may cover the medical bills, it won’t cover everything else that comes with a serious illness. Lost income, travel to treatment centers, home care, and everyday living expenses can pile up fast. That’s where Critical Illness Insurance comes in.
What Is Critical Illness Insurance?
Critical Illness Insurance is a type of supplemental insurance that pays you a lump-sum cash benefit if you are diagnosed with a covered serious illness. Unlike traditional health insurance, the money is paid directly to you — not to a hospital or doctor — and you can use it however you need.
Need to cover your mortgage while you’re out of work? Use it. Want to pay for a caregiver at home? Use it. Need to travel for specialized treatment? Use it. There are no restrictions on how you spend the benefit.
What Does Critical Illness Insurance Cover?
Coverage varies by plan, but most Critical Illness Insurance policies provide benefits for conditions including:
- Heart attack
- Stroke
- Cancer (internal cancer or malignant melanoma)
- Alzheimer’s disease
- Major organ transplant
- Kidney failure
- Blindness
- Paralysis
- Deafness
- Coronary artery bypass surgery
- Coronary angioplasty
Benefit amounts typically range from $10,000 to $100,000, and some conditions pay out at 100% of the benefit while others pay a partial amount.
How Is It Different from Health Insurance?
Health insurance pays your doctors and hospitals directly. Critical Illness Insurance pays you. The two work together — your health insurance handles the medical bills, and your Critical Illness policy gives you cash to handle everything else.
This is especially important if you have a high-deductible health plan, limited savings, or dependents who rely on your income.
How Does It Work with Disability Insurance?
If you have Short Term or Long Term Disability Insurance, there is often an elimination period — a waiting period before your disability benefits kick in. A Critical Illness policy can help bridge that gap, giving you cash to cover expenses while you wait for your disability benefits to start.
Many people pair the two policies together for more complete financial protection.
Who Can Be Covered?
Most plans offer coverage options for:
- Individual — one adult
- Couple — husband and wife
- Single parent family — one parent and all children
- Two parent family — two parents and all children
How Much Does It Cost?
Premiums depend on your age, health history, tobacco use, coverage amount, and the state you live in. Rates are fixed by the state, which means you won’t find a different price for the same plan anywhere else. The best way to find out what it will cost you is to get a personalized quote.
Is Critical Illness Insurance Worth It?
If you don’t have substantial savings set aside specifically for a medical emergency, Critical Illness Insurance is worth serious consideration. The average heart attack patient faces tens of thousands of dollars in costs beyond what insurance covers. A relatively small monthly premium can protect your family from financial hardship at the worst possible time.
Even if you’re young and healthy, a serious diagnosis doesn’t discriminate by age. Getting covered while you’re healthy means lower premiums and no pre-existing condition complications.
Get a Free Critical Illness Insurance Quote
We represent top-rated carriers in your state and can compare plans and rates for you at no cost and no obligation. Rates are fixed by the state — you won’t find a better price for the same plan anywhere else.
Click here to get your free Critical Illness Insurance quote or call us at 800-427-9141.
