What is critical illness insurance?

When we begin to describe critical illness insurance, most people think of AFLAC, the company they associate with “supplemental insurance” policies. AFLAC spends a billion dollars a year on that duck in order to help you make that association. It’s actually a fairly big (and rapidly growing) segment of the insurance market. Much of the growth is fueled by the fact that many people are moving towards higher and higher health insurance deductibles in order to fit the ever-increasing monthly premiums into their budgets.
So how does a critical illness plan work? There are some cancer plans that pay on a fairly detailed schedule of benefits (like paying you $500 per day you receive chemo or something like that). We prefer the simpler approach and increased flexibility of a lump sum benefit. With the critical illness plans we sell (from a couple different carriers), if you’re diagnosed with cancer, have a heart attack or stroke, or some other qualifying event, you get a lump sum in amount between $10,000 and $100,000 (most commonly $25k or $50k).
Why? For starters, it helps you pay your high deductible on your medical insurance. But most people don’t pause to think through the other consequences of this kind of illness or event. You’re probably going to miss a substantial amount of work, as will your spouse, but the bills will keep coming. You may also have to travel for care or you may even find yourself in the position of opting for alternative or experimental treatments that your health insurance won’t cover. You may need childcare. Anyway, there’s a reason so many people have fundraisers when they’re fighting these terrible diseases.
So the point of a critical illness policy is to protect you and your family from a bunch of financial stress when you’ve got more important things to focus on. And the price is not as bad as you might think. Learn more and get a quote here, or simply contact us with questions.