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Critical Illness Insurance Explained

Health insurance helps individuals pay for covered medical expenses such as visits to the doctor, specialist, pharmacy and sometimes even the dentist. Most health insurance policies provide coverage for medical emergencies, such as a trip to the emergency room. 

However, there are some health conditions that aren’t covered under a typical health insurance plan. If you or someone on your health insurance policy suffers a serious medical emergency in this case, you could face potential financial ruin, as you’d be responsible for shouldering the entire cost of the care. 

This is where critical illness insurance could prove to be a literal and figurative life-saver. Below, we provide a full explanation as to what critical illness insurance is. 

What Critical Illnesses Aren’t Covered? 

One of the main reasons why health insurance is becoming significantly more expensive is that people are living a lot longer today than they were even 30 years ago. The average life expectancy increases just about every year in the United States, which poses a challenge to health insurance carriers who must provide coverage to these people. 

At the same time, chronic illnesses are contributing to higher medical costs, as more and more people are being diagnosed with diabetes, high blood pressure and cholesterol issues, for instance. 

As such, health insurance plans have changed a lot in recent years, with many requiring members to shoulder a greater burden by paying higher deductibles. If you suffer a critical illness, then, it could result in a huge financial burden on the member. 

Some critical illnesses that are either not covered by some health insurance plans, or are very expensive under others, are heart attacks, stroke, organ transplants, cancer care and coronary bypass. 

What Happens if You Suffer a Critical Illness? 

The care for all of these critical illnesses is quite extensive and, as a result, quite expensive.  

Such an illness will likely result in you reaching your deductible and out-of-pocket maximum for the year very quickly. This could mean you are strapped with a bill well north of $10,000, depending on the details of your health insurance policy. 

Besides just the medical care itself, there are many other expenses that come with critical illnesses. And the big challenge is that these expenses usually fall outside the of what your health insurance policy will cover. 

In this scenario, you would have no choice but to pay for these expenses yourself — causing you to deplete your savings, take out a major loan, rack up credit card charges or worse. 

What Does Critical Illness Insurance Cover? 

The scenario above is not far-fetched, unfortunately. It’s one that happens nearly every day throughout the country. 

If you’re not prepared to shoulder such a heavy financial burden, having critical illness insurance would be a good idea. 

This supplemental insurance kicks in to provide coverage that your standard health insurance plan does not. Money from it could be used for non-medical costs that are related to the critical illness — everything from transportation, to child care, to lost wages and much more.  

It’s possible that some care that you or a loved one might need for the critical illness would not be covered by your health insurance policy, which is why this supplemental insurance could prove so valuable. 

In many ways, critical illness insurance ensures that, if you or someone else on your policy suffers a catastrophic illness, your family doesn’t suffer financial ruin as well. 

What Isn’t Covered by Critical Illness Insurance? 

Like any insurance policy, there are limits to each critical illness insurance policy. These limits will be listed very clearly when you sign up for a plan. In some instances, you could purchase coverage up to as much as $100,000 or more. 

And, just like any insurance policy, there are exceptions to what critical illness insurance policies will cover. It’s possible that some cancer might not fall under the coverage umbrella. Chronic illnesses typically are exempted from these policies as well. 

If you suffer a recurrence of a critical illness — such as a second heart attack or stroke — then you may not be covered. Finally, critical illness insurance may cut off once you reach a particular age. This is because critical illnesses are more common for older adults. 

Offer Your Employees Critical Illness Insurance Through Beckham Insurance Group 

As the cost of health insurance and medical continues to rise, employers can play an important role in improving the financial health of their employees. One great way to do this is by offering optional critical illness insurance as a supplement to the standard health insurance plan. 

At Beckham Insurance Group, our experienced professionals can help your South Carolina or Georgia business create an all-encompassing benefits package that includes critical illness insurance as an extra level of protection to your employees. 

Contact us today and find out how we can help you and your employees.