You're lucky if you haven't gone through a situation that required you to use critical illness insurance till now. It's even Better if you have never even heard of it. But in the case of sudden emergencies like heart strike or cancer, being insured of critical illness will save you from drowning in debt. People usually believe that they're fully secured after getting a basic insurance plan but little do they know treating a life-threatening disease costs a fortune that no insurance plan basically covers.
If you're not aware of why getting critical illness insurance is important, read below to clear out all your confusions.
This type of insurance exclusively provides extra coverage for emergencies like heart stone or heart attack and cancer. Since these medic emergencies are not easy to manage and cost a fortune for treatment, the insurance policy helps to cover costs that come over what the basic insurance covers. These policies come at a reasonable cost and typically only cover very limited emergencies and illnesses.
What Does It Mean to Have Critical Illness Insurance?
Average life expectancy in the United States continues to increase day by day due to technological advancements in medicine, insurance brokers are finding ways to make sure Americans can afford the privilege of getting older. Critical illness insurance was developed in 1996, as people realized that surviving heart attack, cancer, stroke or organ transplant could leave a patient with a huge amount of medical bills. Critical illness insurance provides coverage if you experience one or more of the following medical emergencies:
Because such illnesses encompass extensive medical care and treatment, their costs can outstrip a family’s medical insurance policy quickly. If you are out of having an emergency fund or health savings account (HSA), it will be very difficult or sometimes even harder to pay those bills out of your own pocket. Choosing high-deductible health plans that nowadays people are preferring, can be something of a double-edged sword. It benefits from relatively affordable monthly premiums to the consumers but could find themselves in a grave situation if a serious illness were to come across or strike. Critical illness insurance can pay for costs not covered by traditional insurance. This money can also come handy for non-medical costs related to the illness, including transportation, child care, any other serious disease conditions etc.
Regardless, the insured will receive a lump sum amount of money to cover those costs. Coverage limits vary – you could be eligible for a few thousand dollars all the way up to $100,000, depending on your policy that you have opted for. Policy pricing may vary and is impacted by a number of factors, including the amount you have decided to cover and extent of coverage, the health, sex and age of the insured, and family medical history.
Owing to different forms of insurance there are exceptions to some critical illness insurance coverage. Some types of cancer may not be covered, while chronic illnesses are also frequently exempted. You may not be able to receive a payout if a disease comes back or if you suffer a second stroke or heart attack. Some coverage might end once the insured reaches a certain age and you might have to renew it or get a new one. You can visit bowtie website to learn more about basic and premium plans. However, like any form of insurance, make sure to read the policy carefully before signing it. The last thing you want to worry about is your emergency plan.
Why It May Be Important?
It depends on you whether you want to purchase critical illness insurance on your own or through your employer (many offer it as a voluntary benefit). You can also Add it in your current life insurance plan may that inturn can also save you money.
One of the main reasons companies have been taking keen interest in adding these plans is that they recognize employees are worried about high out-of-pocket expenses with a high-deductible plan. Unlike other health care benefits, workers generally bear the entire cost of critical illness plans. That makes it a money saver for companies, as well as workers.
A big advantage of critical illness insurance is that it can cover a wide array of issues such as:
How Much Does Critical Illness Insurance Cost?
The fact that these policies seem very appealing is that they are reasonable and don't put an additional financial burden on you. Some small plans coat as low as $25 per month which looks like an easy bargain as compared to other typical health insurance policies. Despite these plans being at a sceptically low cost, health care professionals sometimes doubt their authenticity and worth. The only major concern that revolves around these plans is that they are only limited to certain illnesses. If an illness doesn't come under the range of diseases the bigger to cover, that would be unfortunate. The more illnesses that your plan covers, the more premiums it demands to be paid for..
Since bankruptcy is majorly caused by medical bills, you would take appropriate steps to consider saving yourself from being that unfortunate. You should be more vigilant in case you have a medical or a family history of any of the diseases mentioned in the article. If you have critical illness insurance that covers for you while you're sick, you don't have to worry about not being able to go to work. You can rid yourself of financial worry. It gives you flexibility to decide where and how you wish to spend the insurance money. You can prioritise your needs and spend the money the way that you think is best. Just like any other plan this also has a few shortcomings. You need to work out what plan covers most of your needs and divide on the plan that best suits you.