Perhaps the least known product in the health insurance market, might also be the most important of all. Critical illness insurance is an indemnity product, that pays cash directly to you in the event you have one of the specified illnesses.
According to the Chicago Tribune, over 50% of all bankruptcies in the Chicago Area are related to medical bills. The bills at least contribute to the bankruptcy. To be more specific, if you are self-employed or an independent contractor or somekind, and you do not go to work you do not get paid. A critical illness is often times referred to as a heart attack, stroke or cancer. With any of these illnesses, you will not be going to work for a few weeks, and maybe longer. Your major medical insurance, will cover the all or most of the hospital bills. What about your other bills?
We pay our other bills with the income we earn from our jobs. We usually cannot call our mortgage company and say I had a heart attack and have not been able to work for two months. Can I skip my mortgage payment for a while?
In the Chicago area, it is believed that almost 30% of all deaths are related to heart disease, which is the leading cause of death. Cancer and stroke are the second and third cause of death. All are critical illnesses. Mortality rates asside, the Centers for Disease Control ( CDC) reports that in Ilinois over 60% of adults are overweight or obese. Over 20% report no exercise in the past 30 days, and just under 20% are current smokers.
Critical Illness insurance, pays a specified amount of money, usually a minimum of $5000 and most plans have a maximum of $50,000 ( however some to go higher). You pick the amount you think you need at the time of application. If you are unfortunately diagnosed with one of these specified illnesses, cash is paid directly to you for whatever you might need it for, monthly bills, cash flow, or maybe transportation for loved ones.
This insurance product is the only insurance product that was not created by the insurance industry. It was created by a heart surgeon in South Africa, named Dr. Bernard. Dr. Bernard, said in 1983, ” if you die at age 30 than life insurance is more important, but if you get a critical illness at age 45 or 50, when you are at the height of your earning ability, and you have an operation and survive to live another 20 years, than critical illness insurance is more important. Where workability decreases and the ability to provide for your financial needs diminishes, I think the critical illness policy is much better.”
CI policies can be purchased as a “stand alone” product or as an add on to many health policies. There are now some life insurance policies that provide the critical illness as a “living benefit”.
Protect your assests! Look into a CI policy.