Critical Illness Needn't Hurt Your Bank Account, Too
This is the first article in a series of posts about how to save money on critical illness insurance. Other articles discuss how to find affordable policies, how to compare and choose plans, and how to fund your policy.
How much is insurance worth? This is the ultimate question you will need an answer for when it comes time to buy it. Critical illness insurance covers long-term care or treatment of a specific type of injury that requires more intensive medical attention over an extended period. It can also cover social security death benefits should something happen before you are able to die a natural death with dignity and comfort by yourself or with loved ones at your side.
In the event of a critical illness you have the benefit of not having to worry about coughing up a huge lump sum of cash to pay for long-term care or medical treatment. If you buy insurance when you are young, healthy, and don't earn a large income, then the initial cost will more than likely be less than what your long-term care would cost if you didn't have coverage.
Because of this substantial benefit that comes with buying insurance at an early age there is no reason to wait until you need it to buy it. This article will go into some strategies that can help you find affordable policies and help reduce your risk of developing health issues over the years.
First, let's discuss whether you should even buy a policy.
Do you need it?
Is it worth it? You can assume that everyone at some point in their life will face the possibility of critical illness. It is more likely than not that you will ever get seriously injured or sick. But, you don't have to wait for the day to happen before you buy the policy. You may want to consider going ahead and getting insurance now. Why wait? If you're healthy and young, the cost of an insurance policy may not be very high compared to the long-term care and medical bills that could come later. If you're older, your premiums will be higher, and cost will be a more important consideration.
Consider how much coverage you need. You can get a "modified" critical illness policy that covers only certain illnesses instead of providing benefits on a list of specific injuries or illnesses. Your benefits may be higher if you purchase the whole-life coverage instead of the modified version, but the modified option may work better for those who already have long-term care insurance.
Modified policies may not cover all of your expenses if you are diagnosed with a critical illness like Alzheimer's disease or Parkinson's disease , but there are also added benefits such as guaranteed cash value that will help offset expenses in these situations.
Is there a deductible? In order to receive medical care when you're sick or injured, the insurance company has to be able to pay for it. They might ask you to pay them before they pay for your hospitalization, and that means that they have to set aside money in their reserves in case of an emergency. The higher the deductible, the less money they will set aside. This is assuming that you are not healthy enough to be covered under the policy at all. Having a high deductible can help decrease your premiums if things do go bad.
Medical treatment isn't free, and it's not always affordable. In Canada , medical costs were estimated at 18% of GDP in 2017 . In the United States , medical costs are projected to rise at an average rate of 5.3% over the next five years (U.S. Congressional Budget Office, 2019). As someone incurring more expenses, this may be another reason why you want to consider keeping your options open for a few years and getting long-term care insurance instead.
If you pursue a career in a profession that makes you eligible for coverage under another insurer's policy, then you may be able to qualify for free or reduced outpatient care. Some plans will provide coverage for certain medical supplies and home health services at no cost in exchange for accepting fewer days of work.
Auto-Injury Insurance:
Another type of insurance that you may already have is auto-injury. This type of insurance will only cover you while you are driving or riding in a car that you own or someone else's. Auto-injury will cover the cost of the vehicle, your medical treatment, and lost wages if you were to get injured as a pedestrian or as a passenger.
Auto-injury insurance policies are generally very affordable because they only provide coverage for injuries that happen when driving an automobile . If you're ever hospitalized from something unrelated to a car accident (like a slip and fall) then this type of insurance won't cover the medical costs, but there are other options available to help with hospital bills.
Auto-injury insurance policies will only pay if you are wearing a seatbelt at the time of accident, and this is another reason why it's important to have coverage. Seatbelts save lives, and protecting yourself with a simple piece of technology can help save your cash in the event of an accident.
Another way auto-injury insurance can protect you is by providing coverage for your rental vehicle if you need to use one while yours is being repaired from an accident. For about $15 a month, your auto-injury policy can provide this type of financial security.
Auto-injury policies will also cover you in the case of an uninsured driver. They will cover your medical bills, lost wages, and vehicle damage up to a specified limit. These policies are relatively inexpensive compared to the tens of thousands of dollars that they could potentially save. Most policies have a very low deductible, and there are ways to lower your premium even more. If you want to find out if you qualify for this type of policy, then check with your current insurer or check out some online quotes .
Auto-injury insurance is normally purchased as a rider on an existing auto insurance policy (but it can be purchased through a separate company). So, if you have an auto-injury policy already, then simply signing up for extended coverage is simpler than buying a new policy. You probably won't be able to get away with paying less via auto-injury because your existing policy will cover a lot of expenses.
Auto-Injury Insurance: A Buyers Guide
Medical expenses due to auto accidents can quickly add up and cause problems for drivers attempting to afford the treatments they need. If you own an automobile, then it's important that you get adequate coverage for medical expenses in the event that you are in an accident. Like health insurance policies, auto insurance policies can help protect you from major medical costs if you are involved in an accident. In this article, we will discuss: Deductible Exclusions What is Auto-Injury Insurance?
So, what is Auto-Injury Insurance? Auto-injury insurance protects the insured for injuries received in an automobile collision. The policy provides coverage of medical expenses incurred as a result of an accident without regard to fault. In other words, auto-injury insurance does not go into effect unless you are at fault for causing the accident. If you are not at fault for causing an accident, then your policy will not pay any medical expenses that result from injuries sustained in such an accident.
Conclusion Auto-injury insurance protects you from unexpected medical expenses that result from an accident, and it is purchased as a rider on auto insurance. It is usually very affordable and special discounts are available for new customers. Auto-injury policies can also help to cover injuries sustained by pedestrians or passengers in the event that you are at fault for the accident. Auto-injury insurance policies can have rigorous requirements, so be sure to get all of your questions answered before purchasing this type of coverage.
This article is not intended as legal advice or legal advice should not be taken without first consulting a qualified attorney who knows the laws in your state and local area regarding auto insurance.