Critical Illness Insurance Is Critical
The decision of whether or not to purchase Critical Illness insurance is one that can have drastic ramifications on your life. It is important you are informed about the advantages and disadvantages of this type of insurance coverage, as well as the types that are available so you can make an informed decision.
This post aims to provide you with all the information you need in order to answer a difficult question - do I buy critical illness insurance? In addition, we will also show you how much it costs for critical illness insurance premiums, and how many companies offer this type of coverage.
We will start by explaining what critical illness insurance is, as well as how it can help you in the case of an unfortunate circumstance. We will then go over some of the pros and cons of purchasing critical illness insurance.
Next, we will discuss the different types of critical illness insurance, including how some companies offer policies for a single or multiple illnesses. And last, we will show you where you can get critical illness insurance online at a good price.
Critical Illness Insurance Explained
First, let's look at what critical illness insurance is. This type of coverage is designed to provide you with funds in the case you develop a terminal disease that becomes untreatable and will likely result in your death. Critical illness insurance helps pay for your ongoing medical needs, as well as all of the costs associated with your funeral.
Critical illness insurance may also cover a period before you have been diagnosed with a terminal illness when you are experiencing symptoms such as chest pain, unusual fatigue or shortness of breath. Many policies provide coverage for a single untreatable illness, but others provide coverage for illnesses that fall within an extremely broad category such as cancer or heart disease.
There are four companies that have been approved by the state of New York to provide this type of coverage. As of July 2012, each one provides different benefits and coverage.
Allstate: Covered illnesses include multiple sclerosis, Alzheimer's disease, cancer and heart disease. Policy holders must be diagnosed within a year of making the claim to qualify for benefits. Costs are based on age, location and income level and start at $140 a month for a single illness policy . They can also offer house insurance or health insurance through their Allstate One carrier program.
MetLife : This company implements many critical illness programs with various levels of coverage depending on your coverage needs. Their most popular product is called the MetLife CareFirst plan which covers six illnesses - cancer, heart attack, stroke, Alzheimer's disease, Parkinson's disease and multiple sclerosis. The MetLife CareFirst program also includes life insurance of up to $250,000. For a policy that is valid in multiple states the premium costs approximately $185 a month .
Prudential: They offer their EliteCare critical illness plan which covers nine different illnesses including cancer and coronary heart disease depending on your age when you purchase coverage. This policy will also pay benefits if an insured person dies from any of the specified illnesses. Smaller policies are available for people under age 50 with maximum coverage limits of $250,000 . For a policy that is valid in multiple states the premium costs approximately $190 a month .
Travelers: Their Elite Critical Illness plan covers up to five illnesses - cancer, coronary heart disease, heart attack, stroke and Alzheimer's disease. This company also offers an additional life insurance rider, which can cover a total of $250,000 . For a policy that is valid in multiple states the premium costs approximately $200 a month .
Top 5 Reasons Why You Should Buy Critical Illness Insurance
One of the biggest advantages of critical illness insurance is that it provides coverage for any type of illness. As you can see above, most policies offer coverage for six or nine different conditions.
While policies differ, many will cover the cost of your medications as well as your medical and funeral expenses should you develop a serious illness . If you are paying premiums for health insurance that does not provide this type of protection, it is very likely that you will have to pay out of pocket for these costs if you were to become ill with a terminal disease.
You can save money on health insurance costs by purchasing critical illness coverage since some companies extend their low cost health insurance products into this market. Medical underwriting is also more forgiving when looking at this type of coverage because the underwriter is looking at your life expectancy instead of your current health history.
You can save money on health insurance costs by purchasing critical illness coverage since some companies extend their low cost health insurance products into this market. Medical underwriting is also more forgiving when looking at this type of coverage because the underwriter is looking at your life expectancy instead of your current health history.
Many people assume they will never need critical illness insurance, but take into account all the expenses you may incur when you are sick . This includes medical bills , missed work time , travel costs to help you receive treatment, and other expenses that can add up quickly . Many companies who offer critical illness insurance also provide disability benefits to help those who are temporarily unable to work due to a serious illness or injury.
Another big benefit of this type of coverage is that it can help you better prepare for your final expenses . When you purchase critical illness insurance, you select the amount that the policy will pay out if you were to develop a terminal disease. This amount will be issued to your beneficiaries when the time comes. Many people use this money to help pay for funeral and burial costs, or to maintain their current quality of life while they are ill or recovering from treatment. You can also use it to fund financial aid accounts for yourself or your family members. This way your children will be able to attend college even if something happens to you. The money will also provide them with an inheritance or financial security in case they ever need it.
While all of these benefits may seem tempting, you may be wondering about the downside to this type of insurance coverage. You have already seen how much it can cost, but there are some other drawbacks you should consider as well. For starters, if you are diagnosed with cancer or another serious disease within the first year that you purchase the policy, it is unlikely that you will see any benefits from this insurance. Additionally, most companies will not cover illnesses that are considered to be pre-existing conditions . This means these types of conditions must have been resolved for at least 12 months before insuring under this program. If they are not, your applications will usually be denied .
Humana : This company offers several critical illness products that vary in the type of illnesses they cover. The Humana Critical Illness Insurance Program provides coverage on cancer, heart attack, stroke and multiple sclerosis. Coverage can be extended to $250,000 , which is the maximum that any insurance company offers for an individual or a family . The cost of this policy is approximately $200 a month .
Aetna: This company offers several critical illness products that vary in the type of illnesses they cover. On the Aetna Critical Illness Insurance Plan, coverage includes cancer and heart attack. Benefits can be extended up to $250,000 , which is the maximum amount that any individual or family insurance policy will pay out for.
Conclusion
Most people think about health insurance and life insurance separately, but this isn't necessary. You can save money by purchasing both at the same time. Critical illness insurance is a great way to protect your family from the financial consequences associated with a serious illness or disease. Before you make your decision about if and when you will buy this type of coverage, you should consider how much it costs, what illnesses are covered under a specific plan and what benefits will be provided to help you recover from a serious illness or accident. Many companies provide plans that offer coverage over a certain dollar amount against any one of six different illnesses. This type of package is great for those who want to protect their families from the financial consequences of cancer or heart disease .