Critical Illness Insurance

Critical Illness Insurance

With the increase in medical advances and technology, more and more people are surviving major life situations such as cancer, heart disease, stroke, and even kidney failure. While life insurance has always provided for financial security in the event of death, critical illness insurance is designed to provide financial relief when you may need it most -- traditional insurance just doesn't measure up if you survive a major life illness.

Critical illness coverage provides benefits that are paid upon the diagnosis of a critical illness such as cancer, heart attack, stroke, Alzheimer's disease, kidney failure, organ transplant, disability, and more.

Critical illness insurance has been described as catastrophic disability coverage , as well as a life insurance policy. The difference: a critical illness policy will pay a lump sum benefit on the diagnosis of a covered illness.

Some Interesting Facts:

Approximately 2 in 5 Americans will contract cancer in their lifetime.
Approximately two-thirds of all cancer-related costs are non-medical expenses not covered by other insurance.
40% of all people diagnosed with cancer will survive at least 5 years.
Approximately 1.5 million Americans suffer a heart attack each year.
70% of all heart attack victims survive at least 3 years
Approximately 1,000 Americans suffer a stroke every day.
Almost 75% of all stroke victims will be alive 1 year later.

Why Critical Illness

Basically, there are two main reasons why you can benefit by having critical illness coverage in your insurance portfolio.

1. People are simply living longer. Today, with medical advances and technology, someone who would have died from a critical illness 30 years ago can survive.

2. Many of the costs associated with critical illnesses are not covered by traditional health insurance. For example, approximately two-thirds of all cancer-related costs are indirect costs, or non-medical in nature, which are not covered by any other type of insurance. Some examples:

Your spouse's lost income for time off work to assist in your care. The Family Medical Leave Act is a terrific law, however, while it provides for the time to be with a family member it doesn't pay the bills.
Housekeeping expenses
Modifications needed to your home, or possibly your car to accommodate the changes that may be needed to aide in your care,
Some home healthcare needs

Because traditional life insurance cannot meet these needs, insurance companies are now offering critical illness insurance to fill this gap.

One last note: critical illness insurance should not be confused with an "accelerated death benefit" rider on life insurance. An accelerated death benefit rider typically requires that death is imminent within 6 to 12 months.

To take the worry and confusion out of the many product and carrier options that are in the market, give us a call and we'd be pleased to assist you in establishing a plan or portfolio that best suits your needs.