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Why You Should Invest in Critical Illness Insurance

Many people invest in life insurance, which is meant to soften the financial blow to your loved ones when you pass away. At the same time, people pay for the costs of illnesses through traditional health insurance plans.

Yet, critical illnesses can still be quite expensive, even if you have health insurance. A major reason for that is that more and more people in the U.S. have high-deductible health care plans, which require subscribers to pay for a much larger portion of their health expenses than ever before.

That’s why critical illness insurance has become increasingly popular recently. Below are some reasons why you should invest in critical illness insurance.

What Does Critical Illness Insurance Cover?

Unfortunately, typical health insurance plans don’t cover every medical expense. There are some that are either not covered at all or aren’t covered at full percentages.

Critical illness insurance, then, helps to provide coverage where your normal medical insurance falls short. In many ways, it can be viewed as gap insurance.

This type of insurance provides a cash payout if you ever suffer a critical illness, which will help you to cover the expenses associated with it. Some of the major illnesses that might not be covered fully by your main health insurance plan are cancer, strokes and heart attacks.

The nice thing about critical illness insurance is that you can use the money however you want to. You can either pay down your medical bills with it, or use the payout to cover your daily expenses.

Save Your Savings

Perhaps the biggest benefit of critical illness insurance is it allows you to avoid pulling from your savings account to cover medical expenses, or from going further into debt to stay afloat.

Should you suffer a critical illness that results in a very large medical bill all at once, it can be challenging — at best — to figure out how you’re going to pay for it. On top of the actual cost of the medical bills themselves, there are also potential associated indirect costs such as the money you might lose while you’re out of work.

That’s why critical illness insurance plans are so great. This type of medical event might completely suck up the $15,000 deductible on your health insurance plan, for instance, while you’re also dealing with a reduction and/or pause in your income.

Another great aspect of these plans is that most don’t include a waiting period. In other words, even if you suffer a critical illness a day after your take out your policy, you still will likely to draw from it.

What It Doesn’t Cover

Like its name suggests, critical illness insurance typically only covers certain illnesses. Your insurer will have a list of the illnesses that it does cover so that you can know in advance what ones you would still have to pay for on your own.

In addition, most policies don’t cover critical illnesses that are caused by a pre-existing condition. So, during the application process, you’ll need to be aware that if you’re already sick, you likely won’t qualify for coverage.

How Much Does It Cost?

Some of the more common critical illness insurance policies provide coverage up to $50,000. This would cover the cost of your health plan’s deductible, plus any added expenses that you incur as a result of the illness.

Like all supplemental insurance plans, how much they cost will depend on a number of different factors, including your age, gender, location and general health status. On average, though, this type of policy might have a monthly premium of about $30 per month for a healthy individual who’s 30 years old.

Is It the Only Choice?

If you already have a life insurance policy, it’s possible that your insurer might allow you to add a rider to it that would cover critical illnesses. This would work in a similar way, allowing you to tap into your life insurance policy if you suffer from a qualifying critical illness.

Most term life policies will allow you to add these riders for free. There are often associated costs with adding critical illness riders to permanent life insurance plans.

Offer Critical Illness Insurance Plans Through Beckham Insurance Group

With health-care costs increasing exponentially every year, and with more and more people subscribing to high-deductible health plans, investing in critical illness insurance is a good idea for many people. These plans help to cover the costs associated with suffering a critical illness, bridging the gap that your health plan might leave.

Businesses that offer these plans to their employees are often seen as going the extra mile and caring for their workers’ overall well-being. Companies located in the Georgia or South Carolina region can find the best selection of these plans — as well as the best advice and guidance — from Beckham Insurance Group.

Contact us today to find out more about how we can help you offer critical illness insurance plans to your employees.