Call Us Today: +1 561-210-5822

critical illness policy

Critical Illness Insurance policy

Critical illness insurance protects patients during one of the most difficult moments of their lives. A critical illness diagnoses is one of the worst diagnoses that a person can receive. This type of diagnoses suggests that the patient will be out of work for a significant period of time. Sick days, vacation days and leaves of absences are often necessary in critical illness cases. Some individuals may be required to file for disability. Critical illness insurance is imperative to ensure that critical illness patients receive the care they need.

Increased Health care premiums during a critical illness only exacerbates the patient’s situation. Insurance premiums are affordable as long as the person is working. However, if a patient is not working, individual family, group health, or COBRA for a family of four may cost more than $1600 per month. Patients who are out of work often cannot afford the insurance, and their insurance may lapse. When patients can no longer pay their bills, bankruptcies may occur to those with a critical illness 60+% of all filed due to medical. A joint study performed by Harvard Medical School and Harvard Law School indicated that more than 60% of bankruptcies are a result of critical illness or major medical instances are to blame solely. Critical illness insurance is not an option, it is necessary to cover long term illnesses that may render a person disabled for a significant period of time.

Examples of critical illnesses may include include, HIV, heart attack, stroke, cancers, severe burns, multiple sclerosis, paraplegia, kidney or end stage renal failure, organ transplant, coma, Alzheimer’s Disease and loss of sight, speech or hearing. Most disability insurance requires proof of employment to collect, and not in a lump sum , rather, up to 60% of ones lost wages. Conversely, a payment will be rendered as soon as the funds are needed with a critical illness policy(upon diagnosis). Most payments will be provided in a lump sum. The funds may be spent however the patient wishes. Most individuals will use the money to pay for medical bills, mortgage, other bills, home health care or even a Hawaiian recuperation vacation. Many insurance companies will offer $10,000 to $50 or 100,000 lump sum payment if a condition is developed during the policy period. Another $5,000 may be awarded for recurrence of the same condition after a period of 180 days. Some critical illness insurance payments may exceed $1 million but not needed if have health insurance picking up the bulk of actual medical costs.

Patients may purchase the insurance as an individual policy, as a part of workplace benefits, as a supplement to a health insurance policy or as a supplement to a life insurance policy. If the patient purchases an insurance policy and suffers a recurring illness, he or she may be awarded a percentage of the original payout amount. Twenty-five percent is common. Some patients add riders to cover up to two to three years of mortgage payments or rent. Critical illness insurance will also cover the total of your outstanding credit card debt.

Many insurance policies will require a waiting period after diagnosis before the funds are issued to the policy holder or a survival period. If the policy holder dies while waiting, then no one will receive the benefits often unless it there is no waiting period or if the critical illness policy covers death. Critical illnesses that occur during the policy’s waiting period, such as suicide, self inflicted injury or illness that occurs from illegal activity will not be covered, although most policies will cover 2 year waiting period if suicide. This should obviously not be a factor when applying. Before insuring an individual, a phone interview and medical examination may be required from underwriting.

Most insurers will not sell a critical illness insurance policy to an individual over the age of 65, but there are ones available. Costs increase for individuals who are in their 60s because the likelihood for a critical illness to occur increases significantly. Individuals who apply for critical illness insurance early may lock in a premium price for the duration of the policy. For instance, if the patient purchases the policy at the age of 30 for $22 per month, they may pay that amount for life. Conversely, a person may sign up in their 60s for $230 per month and pay that amount for life.

Each individual should consider critical illness insurance as an essential part of their health care plan. As you see this can raise more and more questions and is better to speak with an insurance agent who has your best interests or fiduciary responsibility as priority.

Questions on critical illness plans, benefits or quotes contact The Critical illness insurance resource center at or 561-210-5822.