Wisdom Bank

Benefit Solutions That People Understand

What is Critical Care Insurance?

Critical Illness insurance, also referred to as Critical Care insurance or Critical Illness coverage, provides a lump-sum cash benefit to help cover expenses associated with a qualifying serious illness.

Critical Illness can strike at any time. We’ve all heard stories of friends or family members who have been affected by a serious illness. What we don’t hear is how the financial strain may also have a major impact during this trying time.

A typical health insurance plan may cover some health care costs, but oftentimes the patient will face other challenges such as paying everyday living expenses while out of work.  Also, most health plans today have very high deductibles and out of pocket maximums. A Critical Care Insurance policy can pay that high deductible.

Herbert Roldan, Cleveland Company Sales Support, says people should consider supplemental insurance policies. “People think they won’t need it, but they need to plan ahead. The advantages to a Critical Illness policy include the flexibility to use the money as you want – pay your co-pays, deductible, mortgage, groceries – whatever you choose.”

Additional reasons to purchase this supplemental insurance include tax free benefits, you own the policy, it’s not employer dependent, and the payout is quick, usually within 30 days.

“Most people see value on this plan when they are reminded of some family or friends that have had or have been in a situation with a Critical Illness, like cancer or a heart condition,” says Roldan.

Here’s how it works:

  1. You purchase a Critical Care policy

After the effective date you are diagnosed with a critical illness which can include:

  • Heart attack
  • Life-threatening cancer
  • Loss of hearing
  • Loss of speech
  • Loss of vision
  • Major organ transplant
  • Paralysis
  • Coma
  • Renal failure
  • Stroke
  • Coronary artery bypass graft
  1. Critical Illness insurance pays the face value of the policy, usually between $10,000 and $50,000, in a lump sum, directly to the policyholder as rehab continues
  2. Policyholder has an emergency fund to cover financial obligations during recovery

Experts says you are 6 times more likely to file a claim under critical illness than life insurance. * If you think you won’t get ill, here are a few facts to ponder:

  • Some 1.4 million Americans were diagnosed with cancer cases (this year 2008)
  • In 2016, 1,685,210 new cancer cases and 595,690 cancer deaths are projected to occur in the United States
  • Every 40 seconds someone in the US has a stroke
  • Every 34 seconds, an American will suffer a heart attack
  • 5 million Americans will declare bankruptcy this year – many due to high medical bills
  • Each year about 600,000 people experience their first stroke and 185,000 have a recurrent stroke

The idea for Critical Illness Insurance was created by Dr. Marius Barnard. There is a video that speaks to his idea and the benefits of having a policy. https://www.youtube.com/watch?v=1OOUiBLkAZQ&feature=youtu.be

Pairing a Critical Illness plan with other health insurance products like Short Term Medical, Dental, Term Life and Accident products can help build a more comprehensive coverage package. Talk to use at The Cleveland Company about your protection options.

Be well,