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How Critical Illness Insurance Works: Financial Relief When You Need It Most

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Critical Illnesses: A Common Catastrophe

In 2016, there were 1,658,712 new cancer cases in the United States. That’s 436 cases for every 100,000 people. Approximately 735,000 Americans have a heart attack every year, and 525,000 of these are the person’s first heart attack. More than 795,000 people in the United States have a stroke each year.

We all like to think of ourselves as healthy – until we’re not. Unfortunately, even our best efforts to eat well and exercise right do not make us immune to critical illnesses. 

These illnesses are devastating in many ways: physically, emotionally and financially. The financial problems can become a source of stress that makes the physical and emotional problems worse.

Even with health insurance, a major illness can leave people with major medical bills. At the same time, people who are suffering from poor health often have to take time off from work. The combination of hospital bills and lost wages can easily drain a family’s savings.

According to the Kaiser Family Foundation, medical bill problems force Americans to make significant sacrifices, with 59 percent saying they used up all or most of their savings, 41 percent saying someone in the household had to work more, and 70 percent saying they had to cut back on food, clothing and basic household items.

Critical Illness Insurance

Critical illness insurance provides a payout if the insured is diagnosed with a covered illness. It is different from health insurance, and it does not replace your health plan. However, it can provide necessary funds in a different time.

The benefit is generally given as a lumpsum payout. The money can be used however the insured wants. It could be used to pay of medical debt, for example, or it could be used to make up for lost paychecks, allowing the insured to take time off to recover without worrying about money.

The payout amount varies depending on the policy and how much the insured wishes to buy, but it is generally a significant amount. On the low end, it could be about $10,000. On the high end, it could be $1 million.

In order to receive the payout, the insured must be diagnosed with one of the critical illnesses listed on the policy. This list will typically include cancer, organ transplant, heart attack and stroke. It may include additional illnesses, as well. However, illnesses not specifically listed will not be covered, and pre-existing conditions will likely be excluded for a period of time, as well.

To obtain a critical illness insurance policy, you may need to a medical exam. However, this is not always required. Some critical illness insurance policies are available without a medical exam.

Want to see how affordable a critical illness insurance policy can be? Get an online quote now.

 

Sources:

·         https://www.cdc.gov/cancer/uscs/about/data-briefs/no8-USCS-highlights-2016-incidence.htm

·         https://www.cdc.gov/heartdisease/facts.htm

·         https://www.cdc.gov/stroke/facts.htm

https://www.kff.org/report-section/the-burden-of-medical-debt-section-3-consequences-of-medical-bill-problems/


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