If you are diagnosed with a serious illness, you will have many concerns, including how you will manage the costs of your care. Even if you have a comprehensive health insurance plan, there are some expenses that won’t be covered. High risk health insurance, or critical illness insurance, is a supplemental coverage that can provide cash benefits if you’re diagnosed with any of a range of life threatening conditions.
If you want to know more about critical illness insurance but aren’t sure where to start, contact a local independent agent in the Trusted Choice® network. One of these agents who specializes in health insurance can help you compare critical illness insurance quotes and find the right coverage for your needs.
Commonly Covered Critical Illnesses
Critical illness insurance policies provide benefits if you are diagnosed with – or experience sudden onset of – a critical illness. Depending upon the policy, this may include a range of conditions including:
- Heart attack
- Kidney failure
Do You Need a Critical Illness Insurance Plan?
When reviewing your need for a critical illness insurance policy, there are several important things to consider, such as whether you have a family history of serious illness. You also want to consider the things you want to protect, like your home and retirement assets. Look at your finances and determine if you would be able to pay your bills for six months or more if you were not able to work due to medical concerns.
In today’s world, health costs can be excessive and even the most robust health insurance won’t cover everything. If you fall ill, you can face the costs of medical procedures, hospitalization, prescription drugs and therapies. For many people these costs combined with a loss of income can lead to financial crisis. Another risk is that you may need to make healthcare choices based on limited financial means instead of the best possible option for your long-term health.
With critical illness health insurance, you can be prepared for these challenges. The financial resources the policy provides can cover a range of expenses, including your care, your mortgage or rent payments and other expenses. Typically, you will receive a lump sum payment that you can use for anything you choose, from daily living expenses to healthcare costs and alternative therapies.
What Does Critical Illness Insurance Cover?
Critical illness insurance policies vary in the amount and type of coverage they provide, and it is important to examine the policy closely. Here are some of the things to investigate in any particular policy:
- What illnesses are covered? In addition to the top three illnesses – heart attack, stroke and cancer – these policies can cover a wide range of health procedures and medical crises, including a major burn or coma, a by-pass surgery or an angioplasty.
- What are the restrictions? These policies differ in the type of coverage, and illnesses can be subject to certain limitations. For example, many policies will only cover HIV/AIDS if you contracted the disease through blood transfusion or organ transplant.
- How are benefits paid? If you receive benefits from your critical illness policy, they can be used for any medical or non-medical expenses you have, at your discretion. However, the amount you receive may vary under different circumstances. For example, the amount of coverage you receive in the event of a cancer diagnosis may depend upon whether the cancer is localized or it has metastasized.
Note that if you have trouble finding insurance, this type of high risk health insurance may be an option. Be sure to compare several companies that carry critical care insurance to get the best possible rate on your insurance policy. A Trusted Choice member agent is a great resource when you need to compare multiple policies and quotes.
Are There Different Types of Critical Illness Insurance?
Normally you can purchase this form of insurance through an employer, but there are specialized critical illness insurance companies that offer coverage as well. The most common plans include:
- Simplified issue individual protection: This is an affordable policy, but it only provides coverage up to $50,000.
- Fully underwritten individual plans: These plans are generally more costly, but provide the extra protection you might be looking for. You can typically buy policies with coverage limits in amounts up to $500,000.
- Life insurance rider: If you don’t want to buy a health insurance supplement, some life insurance policies may offer an added critical illness benefit. This type of coverage will also be subject to certain restrictions.
How Much Does Critical Illness Insurance Cost?
The cost of this policy depends on the amount of coverage you purchase. Insurance professionals recommend that you estimate the cost of 2 to 3 years of mortgage payments as well as any outstanding debt, then purchase a policy with limits that will comfortably cover your costs. Part of your premium is going to be determined by your age and health. A healthy 32 year-old will pay less than a 40 year-old smoker. In fact, smokers can expect to pay 50 percent more than non-smokers on average.
Costs can range anywhere from $40 per month to over $200 per month. It’s best to get individual quotes from multiple critical illness insurance companies. A Trusted Choice independent agent can help to simplify the process of comparing multiple plans.
How to Choose a Critical Illness Insurance Policy
Once you have decided that a critical illness insurance policy is right for you, or you would like to get more information, contact a local independent agent in the Trusted Choice network for guidance. One of these agents who specializes in health insurance can review your health goals and concerns and provide the information you need to make an informed choice about your health coverage.