What Is Critical Illness Insurance?
Critical illness insurance pays you the insurance amount upon diagnosis of an illness such as cancer, heart attack, stroke, etc. Although your medical expenses may be covered by medical insurance, your household bills are not. You still have to pay your mortgage, food bills, credit card, utilities, cell phone, etc. and it becomes difficult to bear while dealing with illness and typically reduced income during treatment. Critical illness insurance will pay a tax-free benefit to help pay for your household bills and other obligations such as medical insurance deductibles.
According to a recent academic research found 66.5% of all bankruptcies are tied with medical issues either high medical costs or time off from work. Critical illness insurance could alleviate this predicament.
Innovation – Life Insurance with Critical Illness rider as an accelerated death benefit
Critical illness insurance is now offered as a rider in Life Insurance. This is excellent for all of us in terms of coverage and costs!
In the past, you could get a critical illness insurance policy mainly through your employer or you could buy it separately. However, not all employers could offer this benefit, in many instances, only those big companies. Also, your policy may not be portable, meaning you either can’t take it out once you leave your job, or may cost more in premium when you buy it in the open market.
Under the rider, when an individual covered with Life Insurance could request acceleration of death benefit when diagnosed with certain critical illness, for example, cancer, stroke, heart attack, etc. There is a certain amount that could be requested; the remaining death benefit amount would be given to the beneficiary.
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