- Josh DeMers, FLMI
- November 19, 2020
- 8 min read
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We understand that critical illness insurance can be confusing and overwhelming if you are just diving into it. The core idea is simple, critical illness insurance can provide you with financial security and peace of mind in your time of need. It’s a great way to prepare for your future, to protect yourself and the ones closest to you.
Let us dive in deeper. What is it, do you need it, and what does it cover? You will find out all your answers in this guide.
Key Takeaways
- An unexpected illness like cancer, heart attack, or stroke, can happen to anyone.
- Having excellent health insurance won’t cover all of the costs leaving you financially at-risk.
- Critical illness insurance can take the financial burden off of you as it pays you directly regardless of other insurance coverage.
- These policies are relatively low cost and can be applied for in less than 5 minutes online through Prepare Insurance.
Table of Contents
What is Critical Illness Insurance?
Chances are you know someone that has been diagnosed with cancer or experienced a heart attack or stroke. These illnesses can drastically affect your physical and financial life.
Critical illness insurance pays a lump-sum, cash benefit directly to you upon diagnosis of a covered condition, such as cancer, heart attack, or stroke. It is used to help you cover the major financial burden that is associated with a critical illness. It gives you options, control, and choice when it comes to planning the future.
Regardless of any other insurance you have, this coverage will pay you directly. Some policies, depending on the carrier, have a built-in return of premium feature that will pay your beneficiaries in the event that you die from something other than a covered condition.
There is no limit on how you may use that money. You can use it to:
- Cover your health insurance deductible
- Pay for your mortgage or rent
- Replace your income
- Pay for a caregiver’s time
- Pay off existing debt
- Cover living expenses such as groceries and utilities
How Does Critical Illness Insurance Work?
Critical illness insurance is a simple policy, you get a cash benefit paid directly to you when diagnosed with a covered condition. Here’s an example:
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- You apply and are accepted for a $10,000 benefit amount policy.
- You go to the doctor and are diagnosed with invasive cancer.
- You file a claim and the $10,000 benefit is sent directly to you.
- Use the payout however you see best.
What Does Critical Illness Insurance Cover?
It covers most common, serious illnesses or conditions that occur. Fortunately, modern advances in medicine have enabled society to live longer with the below conditions. Unfortunately, with rising healthcare costs and high deductible health plans, these illnesses can deal a devastating blow to your financial state.
Covered conditions can vary from carrier to carrier, so always check the specifics before buying coverage. Most policies will cover you for the following:
- Cancer
- Heart Attack
- Stroke
- Coma
- Coronary Artery Bypass Surgery
- Angioplasty
- Major Organ Transplant
- Kidney Failure
How Much Does Critical Illness Insurance Cost?
Depending on the carrier, the typical price range and coverage amounts vary. Below are examples of what you could possible pay per month based on the following benefit amounts.
$5,000 in Coverage
- 25 years old - $4/mo
- 35 years old - $6/mo
- 45 years old - $9/mo
- 55 years old - $14/mo
$20,000 in Coverage
- 25 years old - $9/mo
- 35 years old - $16/mo
- 45 years old - $28/mo
- 55 years old - $49/mo
$50,000 in Coverage
- 25 years old - $19/mo
- 35 years old - $37/mo
- 45 years old - $67/mo
- 55 years old - $119/mo
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How Much Critical Illness Insurance Coverage Do I Need?
Everyone has different needs. People with a family history of critical illness may feel like they need more protection as they have seen the devastation it can have. Your ideal coverage is personal to your financial situation and how long you want to pay off for the necessities in life.
Our calculation breaks it into two different categories, health expense, and replacement funds. Enter the values below to get an idea of how much coverage you may need.
Do I Need Critical Illness Insurance Coverage?
Critical illnesses can affect various aspects of our lives from having a physical toll to becoming a financial burden. These illnesses can happen to anyone as they come unexpectedly.
Who needs coverage?
High Deductible health plan owners
If you have a high deductible health plan, critical illness insurance is a great option to help cover the gap. Health insurance doesn’t pay for everything so making sure you are prepared can mean all of the difference.
Business owners
Critical illness insurance can protect your business while you are away. When going through treatments, use the cash benefit to help your company stay afloat, pay off debt, or as a source of income.
Homeowners
Critical illness insurance can cover your mortgage payments so you can focus on recovery instead of your financial situation. We recommended getting two years’ worth of coverage.
Individuals with Debt
How will you pay off debt or living expenses if you are unable to work due to an illness? Critical illness insurance can give you the financial safety during your time of need to replace your income.
Freelancers/Independent Contractors
Being a freelancer or independent contractor means you may not have access to company benefits. Individual critical illness insurance coverage can provide you with a financial safety net to keep you protected.
Families
Your spouse is also impacted by a critical illness. They will be your biggest support. Critical illness coverage can give you the cash necessary so your spouse is able to take time off work or hire a caretaker.
With the advances of modern medicine, you are more likely than ever to survive a critical illness. The problem arises when the bills come in.
Your health insurance doesn’t cover all of the costs associated with a critical illness, are you financially prepared to cover the following?
- Do you have enough money to take time off work to recover?
- Can you cover your mortgage or rent payments if you’re not working?
- Do you have the savings necessary for your spouse to take time off work, to cover your utilities, or buy groceries if you couldn’t work?
- How will you meet your health insurance deductible?
These costs can significantly add up, leaving you to feel overwhelmed and not knowing where to turn.
When Should I Get Critical Illness Insurance?
Critical illness insurance becomes more expensive as you age and you never know when you can get diagnosed with a critical illness. An illness can happen at anytime, no one can predict the future.
The benefit of signing up now is that the price will typically be locked in for the rest of your life depending on the carrier. Our hope is that everyone that applies is approved for coverage but the reality is that those with existing medical conditions will have a lower approval likelihood.
Applying for coverage today will give you peace of mind, helping keep you protected from the unexpected.
How Can I Get Critical Illness Insurance?
Through Prepare Insurance, you can get your quote instantly and apply for coverage in a matter of minutes.
Here is how our process works for you:
- Get your instant quote
- Answer demographic questions such as name and address
- Answer health questions such as height, weight and if you’ve ever been diagnosed with cancer
- Submit credit payment with our secure system (Don’t worry, we won’t charge you until the policy is approved)
- Sign your insurance application
- Then you’ll get a decision on if your policy has been approved or needs to be reviewed
The process is so simple that you can do it all on your phone, we make it that easy for you!
We tried to capture the most important aspects about critical illness insurance but if you have any questions or want to walk through the process with our team, we are here for you. Critical illness insurance is about obtaining peace of mind for your financial future. Call us at 402-454-7433 or email us at support@prepareinsure.com
Summary
An unexpected illness like cancer, heart attack, or stroke, can happen to anyone. Even having excellent health insurance won’t cover all of the costs leaving you financially at-risk.
Critical illness insurance can take the financial burden off of you as it pays you directly regardless of other insurance coverage.
These policies are relatively low cost and can be applied for in less than 5 minutes online through Prepare Insurance.
Share This Post
Get your instant, personalized quote
Our process takes minutes, saving you time and money when you need it most.
