Should I have critical illness insurance Insurance consultant Memphis - Delta Benefits Group.png

Should I Have Critical Illness Insurance?

According to the CDC, every year, about 805,000 people in the United States suffer a heart attack. In fact, heart disease, which includes strokes, is the first leading cause of death in the US. The second-leading cause of death is cancer. Every year, more than 1.6 million people in the US are diagnosed with a form of cancer.

With so many people being diagnosed and treated with significant illnesses, how can you protect yourself and your family in the event you need to be treated? The answer is critical illness insurance. In today’s blog, we’re discussing critical illness insurance. What exactly is it, and why might you need it?

Though critical illness insurance may be a smart consideration for anyone of any age, we’ll specifically discuss why Medicare recipients may want to consider purchasing a critical illness plan.

What Is Critical Illness Insurance?

What is considered a critical illness? The 3 primary critical illnesses covered with critical illness insurance are cancer, heart attacks, and strokes. However, critical illness insurance may also protect those who need heart transplants, Coronary bypass surgery, Angioplasty, Major organ transplant, as well as those diagnosed with Kidney (Renal) failure or Paralysis.

In the event you are diagnosed and have critical illness insurance, your plan will pay you a lump-sum benefit in addition to payments and costs covered by your Medicare plans, supplements, and other types of insurance benefits.

This is to say that while critical illness insurance is not a Medicare-specific form of insurance, Medicare beneficiaries can purchase it. However, critical illness insurance is not meant to replace Medicare. It should work with your Medicare coverage to help you cover financial expenses associated with your healthcare. Critical care insurance can provide you with extra cash, should you be diagnosed with a covered illness.

Why Medicare Beneficiaries May Want to Consider Critical Illness Insurance

Most Cancer-diagnosed Medicare recipients who don’t have the appropriate supplemental coverage will be responsible for a lot of cancer-related expenses. These expenses may eat up 60% or more of your annual income. This is because Medicare doesn’t put a cap on how many out-of-pocket expenses you can incur. Even with Medicare Advantage, you will be expected to pay 20% of your out-of-pocket costs. Twenty percent can easily be a lot of money when it comes to the treatment of critical illnesses, such as cancer.

Again, you don’t have to be on Medicare or around the age of 65 to purchase critical illness insurance. If you are under the age of 65 and have questions about a potential critical illness policy, give us a call. We’d be glad to answer any of your questions and point you in the right direction to help you responsibly manage your health care and health-related costs.

How Plans Pay You

When someone is diagnosed with one of the aforementioned illnesses, you will receive a lumpsum payment from your insurance provider.

Depending on your policy, you may receive multiple cash payments. Consider in the event you are diagnosed with cancer, it’s successfully treated, and you survive. Then, you suffer a heart attack. Depending on your specific plan, you may be eligible to receive another cash payout.

What Can I Use My Critical Illness Insurance for?

While your Medicare plan will pay your doctor, hospital, and other medical care providers, your critical illness insurance plan will pay you directly. So, you get to decide on what expenses you use your insurance payout on. Some examples of expenses include:

  1. Cash for treatments that may not be covered by your health insurance plan or Medicare plan

  2. Money to pay other expenses outside of your health-related expenses, such as your mortgage, car payment, Medicare premiums, etc

  3. Money to pay for expenses in the event that you need to travel to receive treatment

Making a Decision About Critical Illness Insurance

Critical Illness insurance is a smart consideration for people of all ages. If you have heart disease or cancer in your family, you may consider purchasing it at a younger age. As you get older, unfortunately, your likelihood of being diagnosed with a critical illness goes up. In these cases, critical illness coverage could protect you.

If you have questions about a specific policy, please reach out to our insurance experts. We’ll take a look at your specific situation, current insurance plans, and budget, and advise you on the best direction to go. Our phone number is 901-460-7220. You may also reach out to us by filling out our secure online form here.