The Importance of Critical Illness Insurance

Published August 31st, 2021 by Elliot Glass Insurance

When being diagnosed with a life-threatening illness like cancer, heart attack, stroke and end renal disease scares not only the layperson but also the family.  The best way to prepare for the unexpected is by purchasing critical illness insurance.  Without the protection of critical illness insurance in place, you and your family will suffer major financial devastation especially if you become critically ill and lose the ability to work.  Also, if your spouse falls sick you will have to take time away from work, critical illness coverage eliminates the added burden of looming bills and pesky creditors.  Critical illness insurance pays you a lump sum if you are diagnosed with a severe medical problem.

The three types of critical illness insurance plans available.  They are a mortgage life insurance policy with a critical illness rider; a combined policy of mortgage and critical illness life insurance; and a stand- alone critical illness insurance policy.

Critical illness insurance is for everyone and is not just limited to homeowners or employed individuals however you must qualify based on your health.  Underwriters will review your Medical Information Bureau (MIB) report.  This report is like a credit report that it checks your medical records to uncover any errors, omissions, or misrepresentations that applicants make when applying.  It helps prevent fraud, risk, and increased costs. 

Today’s health insurance expenses have become astronomical, especially if your coverage is denied or cancelled.  Critical illness insurance is routinely confused with health insurance, people have become bankrupt trying to pay medical bills that were not covered by their health insurance provider. Health insurance policies feature limited benefits, ceilings, and caps on the yearly payouts and/or maximum life amount.   Therefore, purchasing critical illness protection will guarantee your ability to meet all of life's "surprise" financial obligations.

So, how much coverage do you need? Well, that all depends on your personal situation.  The factors that you need to consider when approximating how much critical illness is necessary are:

  • How much are your monthly expenses?
  • How much is your total monthly mortgage?
  • What other insurance policies do you have?

More importantly you need to look at how these terminal illnesses by each adult member of the household will affect the overall financial future of your family.   Take into consideration the changes that will occur such as lost wages, medical bills, out of pocket expenses (gas, parking, co-payments, prescriptions, supplies, long-term care expenses, etc.) and increased child’s/adult daycare.

Protect yourself and your family today by purchasing critical illness insurance for every adult household family member.  These days the possibility of becoming terminally ill is very real and so is the potential devastation to your family and financial picture without adequate critical illness insurance protection.  Book a free appointment to review which critical illness plan is best for you and to go over all your options.  

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