Individual and Family Coverage

Critical illness insurance for Individuals and Family

There is a clear path to follow when deciding on getting individual coverage and, can decide which is best for you and your family by following these simplified basic steps outlined.

First one should think about Critical illness insurance (CII) like getting health insurance in that there really only is coverage that is offered as a group or individual (inclusive of family on either avenue). Let us focus on the individual critical illness plans and determine the best course for your needs.

What is individual coverage?

Individuals and or family coverage for critical illness insurance is typically a lump sum policy whereby the benefits of the policy are paid to the insured upon diagnosis of a covered critical illness. Some policies are better than others if including a full family simply because the policy may pay out different amounts if including dependents in which case may receive less money than the primary. Those however are really choice policies for individuals while others favor towards family. Check with the resource center to find out which is best for your needs.

Determining how much coverage is enough for an individual

This is a variable with many factors but keeping it simple keeping these things in mind can help in your decision process. By determining what extra expenses might you be incurring that health insurance wont cover is pretty much the main focus. While it differs one constant factor remains the same…responsibilities. If you are younger a $100,000 policy can be gotten with just $20 or so and lock in those rates for life are great. Persons/ individuals in their forties age range with a home mortgage, kids, perhaps a business, may need to get near that amount while if your older and less responsibilities (mortgage paid, retired no income worries if off from work) may not need very much. One thing is certain if you have a health insurance and deductibles are high you’ll need this policy to not only cover your high deductible but also perhaps a co-insurance (i.g. 80/20 plan). There also are going to be incurred expenses and if you do have a paycheck you wont be receiving or have a disability plan that covers a max of 60% of your pay you may need the upfront monies to continue to maintain lifestyle(s) while recuperating for 6 months to a year. This is the main cause for most bankruptcies in the U.S. today. Health policies may also not cover clinical or experimental treatments that tend to work. Or special treatment centers that cost extra, transportation and so forth. In keeping this in mind, it is a good idea to get at least $10 but up to $100,000 cash coverage if a lump sum benefit. The average seems to be right around $30-$40,000 of coverage or right around $40 of coverage for more than one company’s stats.Consultation is always free from your insurance agent or contact the Critical illness insurance dept. at 561 210 5822.

Types of individual plans offered

It is a plan that will cover typically the basics of a critical illness such as heart attack stroke and cancer. Some carriers offer the heart and circulatory as one policy under a specified disease plan and a separate for cancer. If you can get them all together in one policy it may be better and also would probably be more of a lump sum upfront money benefit policy.  There are also plans without a lump sum and pay as an expense plan or indemnity policy in which case pays a stated benefit amount per procedure so there would be limitations. Lump sum policies instead are what most carriers offer for critical care insurance.

Families can get on one plan and while critical illness knows no age or discrimination it is more likely for persons with higher age, or if they have a higher health risk habits such as smoking or drinking and such are prone to develop a critical illness. Individuals can keep their policies for life either due to guaranteed renew-ability or a lifetime policy that usually in the industry locks in your rates. So do not wait with every passing year rates go up!

Why get individual coverage and where to go.

This is important to note. You MUST get your critical illness policy outside the major medical health insurance policy you may have or be offered as a rider to the comprehensive policy with your current carrier. This is important for many different factors as an individual people tend to change their health insurance policies every few years  some even less than that. As such you will lose your critical illness insurance when you lose your major medical. Then your rates are never guaranteed to not rise like a separate CI policy would provide as lock in rates. As well, if you move your policy or lose the coverage you may develop a condition (diabetes or other) that make it nearly impossible to get coverage same as it would be to get major medical. Supplemental individual health insurance policies do not follow the same reform laws. This is a good thing but get it young, stick with the low payments and you’ll be guaranteed or Life!

How to get a individual policy and which is best

To thoroughly answer this each person is different and although we think we dont need the help of an agent it really might be best in determining the ins and outs of why one carrier or plan they offer is strong in one regard and not in another. Depending on your needs not all plans are the same so while you can shop around for quotes, it may not be the wisest move to decide by. Factors and elements of plans play factors. Price should not. Benefits are. Price should not. What are good for individuals with one carrier  may not be for a family plan with another carrier. Contact the resource center to determine best for your needs.

Two biggest mistakes individuals make in getting critical illness insurance

Whether or not you have full comprehensive major medical insurance or not is not a deciding factor. Certainly if you are older individual you may have less responsibilities and therefore may not require as much coverage. If you have a home and it is nearly paid off or you are retired etc. a basic $10k- $25 may be enough. The biggest mistakes though made by individuals thinking that they are healthy, it wont happen to them and that they have time. The biggest mistake waiting on getting coverage. If you are healthy later you can raise the coverage. If you don’t, and are one of the nearly three million annual new cases of critical illness diagnosed a year, or 30 million in the next 10 years, you’ll be glad you got the coverage.

The other mistake buying on price. “If premiums were $50, we’d shop til we got $40.00”. Since critical illness insurance plans are pretty much already low price, it should be secondary and benefits of coverage and type of plan should be primary.

Prices are relatively only a few dollars difference from insurance company to insurance company. Best to inquire on benefits and practices. There may be a bigger difference with some carriers if you are a tobacco user or not when your older with some carriers and that could be the main difference in price. If it is not that it could just be age that one carrier may be kinder and more lenient with. Try to not get to hung up on price at times you get what you pay for. Also going with a more well known name may not always be the answer simply because they have advertising dollars it may actually cost more. If unsure contact the U.S. Critical illness resource Dept. for more info.

What to do if you have been turned down due to pre-existing conditions

For that there is a guaranteed issue critical illness insurance plans. They are few and far between right now but are available and contain no underwriting. They will become more popular and more will become available with the popularity of the product in next coming years.

Where to apply and what to include for individuals

Most application are simplified underwriting so unlike Major medical it will only be a few perhaps 15 medical questions. When you do have  condition its really best to divulge info unlike years prior where individuals hid or fibbed technology has really caught up. If you get flagged by MIB Medical Information Bureau) during underwriting it may assist the underwriters if you had explained it rather than hiding something. If you are healthy underwriting may take only 2 to 3 days. If you have a condition and you let them know and disclose it may not be as bad as you thought it may have effected you. Having high blood pressure and cholesterol is not a turn down if it is under control with medications. Although you are turned down from a major medical carrier for bi-polar disorder or perhaps on antidepressants may not be a factor here as long as it is disclosed. Be sure to write your prescriptions, amount taken how often with the milligrams and when diagnosed also include the doctors name. Underwriters like info and wont have to search to find themselves which delays your acceptance and your chances.

Which carrier is best is covered above. Certainly ratings are important but they are not the only element to gauge upon. Following the critical illness consumer guide for individuals and families listed here will aid you finding the best plan coverage and how to apply.

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