Skip to main content
Life and Health


By April 1, 2012No Comments

Many people aren’t aware that Critical Illness insurance exists. The reason behind this is because Critical Illness coverage is fairly new to the United States market. Policy sales began in 1996. It’s also sold by brokers who are usually more focused on selling Life insurance. In addition to this, the coverage is aimed toward people who are between the ages of 30 and 55, which is a large group of people who aren’t as eager about purchasing Life insurance as they should be. Critical Illness insurance is affordable and simple. It is a supplement to a Health policy. If a person experiences a bout with cancer, a heart attack or a stroke, Critical Illness insurance contributes to financial stability during the experience.

Although the population is generally uninformed about this valuable type of coverage, it is similar to Long-Term Care coverage in the respect that it is becoming more necessary as our society changes. Since the population is living longer, the need for Long-Term Care insurance is increasing. In a similar fashion, the need for Critical Illness insurance is increasing because people are more likely to survive a heart attack, stroke or cancer today than they were several years ago. The chance of surviving cancer today is more than 60% for both men and women.

Since many bankruptcies result from extensive medical bills, it’s important to recognize how valuable Critical Illness coverage is. This type of insurance is designed to pay for the expenses that regular Health insurance won’t cover. Out-of-town care, copay fees, non-medical expenses, alternative treatments, deductibles and non-covered prescription drugs are a few examples of items that are covered under a Critical Illness policy. The coverage might also provide some compensation that Disability coverage offered by employers doesn’t cover. Benefits are paid in one lump sum. The sum is paid even if full recovery is expected. There are some policies that offer multiple payments.

Critical Illness coverage is a valuable investment for those who want to financially survive a critical illness. Treatment and recovery can become extremely expensive without insurance. Keep in mind that regular Health policies have limited coverage for the recovery period following the onset of a critical illness. The biggest issue is deciding how much coverage to buy. Since each person’s situation differs, there is no specific amount that every individual should buy. It’s best to contact our office to learn how this coverage works, how much will be enough to stay afloat financially and what steps must be taken to obtain proper coverage. Keep in mind that these policies are only for genuine critical illnesses. Skin cancer that can be removed or chest pain that doesn’t result in a heart attack are situations that would not be covered.