The Benefits of Critical Illness Insurance

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Understanding Critical Illness Insurance

What is Critical Illness Insurance?

Critical illness insurance provides financial support when diagnosed with severe medical conditions such as cancer, heart attack, or stroke. This insurance aims to ease the financial burden by offering a lump-sum payment that can be used to cover medical expenses, lost income, or other costs associated with your illness. Understanding its importance helps you prepare for unexpected health challenges.

Benefits of Buying Critical Illness Cover Alone

Purchasing critical illness insurance independently allows for greater flexibility and focused coverage. You can tailor the policy to meet your specific needs without being tied to other types of insurance. This approach ensures that you receive the necessary protection for critical illnesses without overpaying for additional coverage you may not need.

Is It Beneficial to Have Multiple Policies?

Holding more than one critical illness insurance policy can provide added security and financial support. Multiple policies might be beneficial if you want higher coverage limits or additional protection for different types of illnesses. However, it’s crucial to assess your financial situation and coverage needs to determine if having multiple policies is the best choice for you.

Top Providers of Critical Illness Insurance

Choosing the right provider is essential to maximize the benefits of your critical illness insurance. For example, Assurity is known for its broad coverage, immediate payouts, flexible benefit use, and no medical exam requirement for policies up to $75,000. Evaluating providers based on these factors ensures you select the one that best meets your needs.

Cost Considerations

The cost of critical illness insurance varies based on several factors, including age, health status, and the level of coverage chosen. Understanding these factors helps you make an informed decision and find a policy that fits your budget while providing adequate protection.

Benefits Of Critical Illness Insurance

How We Can Help

At The Annuity Expert, we understand the emotional and financial stress that comes with critical illnesses. Our goal is to find the best insurance solutions at the lowest costs, tailored to your unique needs. With 15 years of experience as an insurance agency, annuity broker, and retirement planner, we are well-equipped to guide you through the process.

We recognize that the core problem you face is the financial uncertainty caused by critical illnesses. This uncertainty affects your peace of mind and can lead to emotional stress. By offering comprehensive insurance solutions, we aim to alleviate this burden, providing you with security and peace of mind.

We believe in providing transparent, cost-effective solutions that ensure you receive the best coverage possible. Our commitment to your well-being drives us to continuously seek out the most beneficial options for our clients.

What We Recommend

  • Step 1: Initial Consultation
    • Contact us for a free consultation.
    • Assess your needs, explain your options, and answer any questions.
    • How it benefits you: Gain a clear understanding of how critical illness insurance can protect you financially.
  • Step 2: Policy Selection and Customization
    • Help you select and customize a policy based on your unique needs.
    • Ensure the best coverage at the most affordable rate.
    • How it benefits you: Have a tailored insurance plan that fits your specific requirements.
  • Step 3: Ongoing Support and Review
    • Provide ongoing support and regular reviews after your policy is in place.
    • Ensure your coverage remains adequate as your circumstances change.
    • How it benefits you: Enjoy continuous protection and peace of mind knowing your insurance evolves with your needs.

By choosing The Annuity Expert, you avoid the pitfalls of inadequate coverage and financial strain. Instead, you gain security, peace of mind, and the confidence that you are prepared for life’s unexpected health challenges.

For free advice or a free quote, reach out to us today. Let us help you find the best critical illness insurance to secure your future and provide the peace of mind you deserve.

Critical Illness Insurance Quotes

Feel free to contact us for a critical illness insurance quote online. The service is free of charge.

Disability Insurance Inquiry
First
Last

Frequently Asked Questions

Are critical illness plans worth it?

Critical illness insurance can provide peace of mind, knowing that you and your family are financially protected in the event of a critical illness. However, it is essential to consider the potential drawbacks before purchasing a policy, such as the cost of premiums and the waiting period before benefits are payable.

Who needs critical illness insurance?

Critical illness insurance is typically recommended for people who are considered to be at high risk of developing a critical illness, such as those with a family history of cancer or heart disease. However, it can also be beneficial for people who do not have health insurance or who have limited coverage.

What is some alternative to critical illness insurance?

Some alternatives to critical illness insurance include health insurance, disability insurance, and long-term care insurance.

How long does it take for critical illness insurance to pay out?

Critical illness insurance policies typically have a waiting period of 30, 60, or 90 days before the benefit is payable. The waiting period helps ensure the policyholder is diagnosed with a critical illness, not just a minor ailment. However, we do have companies that will pay upon diagnosis.

Can I get critical illness coverage after the diagnosis?

Generally, obtaining critical illness insurance after a diagnosis is not possible due to the underwriting process. Insurers consider individuals with existing serious health conditions high risk. Alternatives include group insurance plans, life insurance with living benefits, government or charity programs, and financial planning adjustments to manage expenses.

Does critical illness pay out more than once?

No, critical illness insurance policies typically only pay out once. The benefit amount is typically paid out as a lump sum and can help cover the costs of medical treatment, lost income, and other associated expenses. However, there are exceptions where companies will pay out for each category.

What is the difference between life insurance and critical illness?

Life insurance provides financial protection if the policyholder dies. Critical illness insurance provides financial protection if the policyholder is diagnosed with a critical illness. The benefit amount for critical illness insurance is typically paid out as a lump sum. However, it can be used to help cover the costs of medical treatment, lost income, and other associated expenses.

Can I have a critical illness without life insurance?

Yes, you can purchase a standalone critical illness insurance policy. However, most life insurance policies include an accelerated benefit rider that provides financial protection if the policyholder is diagnosed with a critical illness. This allows you to take some of your death benefits early.

Are critical illness benefits taxable?

Critical illness benefits are generally not taxable if you’ve paid the premiums yourself with after-tax dollars. This means the payout you receive from a critical illness insurance policy is typically tax-free. However, the benefits may be taxable if your employer pays for the policy and does not include the premiums in your gross income.

Does critical illness cover heart failure?

Critical illness insurance policies typically cover heart failure. The benefit amount is typically paid out as a lump sum and can help cover the costs of medical treatment, lost income, and other associated expenses.

What is not covered by critical illness insurance?

Critical illness insurance policies typically do not cover pre-existing conditions, routine check-ups, or preventive care.

How much does critical illness insurance cost?

Critical illness insurance premiums vary based on the policyholder’s age, health, and lifestyle. However, it is typically more expensive than other types of insurance, such as health insurance.

What is an exclusion in critical illness insurance?

An exclusion is a condition or circumstance not covered by an insurance policy. Exclusions vary by policy, but standard exclusions for critical illness insurance include pre-existing conditions, routine check-ups, or preventive care.

When should I get critical illness insurance?

Critical illness insurance is typically purchased when you are younger and in good health. This is because the premiums are typically lower when you are younger, and your chances of being diagnosed with a critical illness are typically lower.

What three major categories of critical illness insurance carriers often group covered conditions?

Cancer, heart conditions, and stroke are often the three major categories into which critical illness insurance carriers group covered conditions.

Does critical illness insurance cover pregnancy?

Critical illness insurance typically does not cover pregnancy. This is because pregnancy is considered a pre-existing condition.

How long does it take to settle a critical illness claim?

It typically takes around 30 days (waiting periods) to settle a critical illness claim for a covered illness.

What is the average payout for critical illness insurance?

The average payout for critical illness insurance coverage is typically $10,000. However, payouts vary based on the policy and the insurer. There are many options to choose from that are as low as $10,000 and up to $500,000 cash benefits. The larger the benefit, the higher the premium. There are coverage limits on each plan.

What is the expected benefit ratio?

The expected benefit ratio is the percentage of people benefitting from their critical illness insurance policy. The average is 60%. This means one will claim every two people with a critical illness insurance policy.

Is critical illness considered a voluntary benefit?

Critical illness insurance is typically considered a voluntary benefit. This is because it is not required by law but can benefit employees. In addition, employers often offer voluntary benefits as an added perk for employees.

What are the disadvantages of critical illness insurance?

The disadvantages of critical illness insurance include high premiums, limited coverage for certain illnesses, strict policy conditions, potential exclusions based on pre-existing conditions, and the possibility of not receiving a payout if the illness does not meet the policy criteria.

What is the difference between critical illness and terminal illness?

Critical illness refers to serious, potentially recoverable conditions like heart attacks or strokes. Terminal illness describes incurable diseases with a prognosis leading to death, focusing on palliative care, such as advanced cancer.

Does critical insurance pay monthly?

Critical illness coverage typically does not pay monthly. Instead, it provides a lump sum benefit. This payment is made if you are diagnosed with one of the specific illnesses covered by the policy. The lump sum can be used for various purposes, such as covering medical expenses, paying off debts, or compensating for lost income during your recovery period.

Does critical illness insurance accumulate cash value?

No, critical illness insurance does not accumulate cash value.

Does critical illness insurance cover basal cell carcinoma?

Yes, Assurity will pay $25,000 (25%) of a $100,000 critical illness policy for the first diagnosis of basal cell carcinoma.

Does critical illness insurance cover arthritis?

Generally, critical illness insurance does not cover arthritis.

Does critical illness insurance cover hearing loss?

Yes, hearing loss is typically covered under critical illness insurance, depending on policy specifics and the cause. Coverage may vary for sudden, gradual, or occupational hearing loss. Claims require medical documentation and adherence to policy terms. Always check your policy to understand the exact terms and conditions.

Does critical illness insurance cover stents?

Critical illness insurance generally covers stents if they are placed due to a heart attack, depending on the policy specifics. Coverage may exclude stents for arterial blockages without a heart attack. Always review your policy for details on pre-existing conditions and waiting periods.

Does critical illness insurance cover Type 1 diabetes?

No, critical illness insurance generally does not cover Type 1 diabetes.

Does critical illness insurance cover Type 2 diabetes?

Yes, critical illness insurance generally covers Type 2 diabetes.

Does critical illness insurance cover depression?

No, critical illness insurance generally does not cover depression

Does critical illness insurance cover a hysterectomy?

Critical illness insurance does not pay for the hysterectomy procedure itself. However, if diagnosed with cancer (e.g., ovarian) requiring a hysterectomy, the policy would cover the cancer diagnosis. Health insurance would cover the hysterectomy procedure.

Does critical illness insurance cover death?

No, critical illness insurance does not cover death.

Does critical illness insurance cover all cancers?

Critical illness insurance covers cancers: 100% for invasive cancer and 25% for non-invasive cancer. Combined coverage for both types cannot exceed 100%. Child CI riders do not cover cancers.

How much critical illness insurance do I need?

For individuals in their 20s and 30s with low health risks, $50,000 to $100,000 in coverage is typically sufficient. Those in their 40s and 50s with moderate health risks should consider $100,000 to $250,000. For individuals aged 60 and above or with significant health risks, $250,000 or more is recommended.

Does critical illness insurance have a death benefit?

No, critical illness insurance does not have a death benefit.

Does critical illness insurance cover chronic fatigue?

No, critical illness insurance does not cover chronic fatigue.

Does critical illness insurance cover hip replacement?

No, critical illness insurance does not cover hip replacement.

Does critical illness insurance cover kidney stones?

No, critical illness insurance does not cover kidney stones.

Who offers the best critical illness insurance?

Assurity offers the best critical illness insurance.

Can you buy a stand-alone critical illness policy?

Yes, you can buy a stand-alone critical illness policy.

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

Scroll to Top