accident & Health insurance

Critical illness insurance, also known as critical illness cover or dread disease insurance, is a type of insurance policy that provides a lump-sum payment to the policyholder upon the diagnosis of a covered critical illness or medical condition. This insurance is designed to help individuals and their families cope with the financial challenges that often accompany serious illnesses and medical treatments.

Critical illness insurance prevents families with specific medical emergencies from depleting their savings, possibly even going into debt. It pays out a lump sum amount upon diagnosis of certain diseases and medical events. If you have a critical illness, this policy will not be approved. Critical Illness is an insurance that you purchase before you are diagnosed with an illness. You want to purchase this while you are healthy.

How Critical Illness Works

Critical illness can be either a stand-alone policy or a life insurance rider.
The face amount generally ranges from $10,000 to $500,000.
Policies vary dramatically in the medical conditions they cover, the amount available, and the premium amount.
Some policies have restrictions, like the number of days the insured must survive after the diagnosis before the insurer processes a claim.
Your doctor will make the diagnosis. It doesn’t need to be someone who works for the insurer. The best companies will process the claim upon diagnosis. Then the insurer will pay the lump sum amount. You can use the money for whatever you wish.
What Does Critical Illness Insurance Cover?
The triggering conditions vary between companies. All critical illness policies from reputable companies cover the following:

• Heart attack
• Cancer
• Stroke

Most will also cover many (if not all) of the following conditions. Just be sure to check the quote. It will list which conditions the insurer will cover.

• Alzheimer’s Disease
• Aortic Surgery
• Aplastic Anemia
• Bacterial Meningitis
• Benign Brain Tumor
• Blindness
• Coma
• Coronary Artery – Bypass Surgery
• Deafness
• Heart Attack
• Heart Value Replacement
• Kidney Failure
• Loss of Limbs
• Loss of Speech
• Major Organ Transplant
• Major Organ Failure – On Waiting List
• Motor Neuron Disease
• Multiple Sclerosis
• Occupational HIV Infection
• Paralysis
• Parkinson’s Disease
• Severe Burns

The Need for Critical Illness Insurance

Health insurance can be a mess. Plus, medical costs keep going up.
With most Americans struggling to cover any $1,000 emergency, an illness can wipeout any savings in no time.

The most recent data by the National Cancer Institute shows that 38.4% of Americans will be diagnosed with cancer at some point in their lives.
The good news is that the fatality rate from cancer has fallen 25% since 1991. Which means that while the prognosis tends to be more promising as technology advantages, medical bills are also increasing. This leaves survivors buried in medical debt.
At the same time, the Society of Critical Care Medicine says that 5.7 million Americans will find themselves in intensive care units each year. Common reasons are:

• Intensive or invasive monitoring
• Support of airway, breathing or circulation
• Stabilization of acute or life-threatening medical problems
• Comprehensive management of illness or injury
• Restoration to stable health status

Many of the scenarios triggering the reasons above will also trigger the payout on a critical illness policy, avoiding co-pays or surprise charges that health insurance doesn’t cover.

Sample Quotes for Mutual of Omaha

All of the following tables are monthly, non-tobacco rates. These can vary based on the state you live in. Mutual of Omaha also puts both men and women at the same rates.

Age 30

Age 40

Age 50

Age 60

At age 60, terms are no long available. So the table below shows lifetime rates.

Here are key aspects and features of critical illness insurance:

1. Coverage for Specific Illnesses: Critical illness insurance covers a predefined list of serious illnesses and medical conditions, which may include cancer, heart attack, stroke, organ transplant, kidney failure, and others. The specific covered conditions can vary among insurance policies and providers.
2. Lump-Sum Payout: If the policyholder is diagnosed with a covered critical illness during the policy term and survives for a specified waiting period (usually 30 days or more), the insurance company pays out a lump-sum benefit. This benefit is typically tax-free and can be used at the policyholder’s discretion.
3. Use of Funds: The funds received from critical illness insurance can be used for various purposes, such as:
   • Covering medical expenses not covered by health insurance.
   • Paying for specialized treatments or medications.
   • Replacing lost income during treatment and recovery.
   • Covering mortgage or rent payments.
   • Paying off debts, such as credit cards or loans.
   • Making home modifications for accessibility.
   • Funding lifestyle adjustments due to the illness.
4. No Restrictions on Medical Providers: Policyholders have the flexibility to choose their preferred medical providers and treatment options. There are typically no restrictions on where or how the funds are used for medical care.
5. Survival Period: Most critical illness policies require the policyholder to survive for a specific waiting period (e.g., 30 days) after the diagnosis of a covered condition before the benefit is paid. This ensures that the illness is severe and enduring.
6. No Requirement for Medical Expenses: Unlike health insurance, critical illness insurance does not require policyholders to provide proof of medical expenses. The benefit is payable upon diagnosis of a covered condition, regardless of actual medical costs.
7. Renewable and Convertible: Critical illness policies are often renewable and may allow for conversion to a different type of life insurance policy (e.g., term life or permanent life insurance) at the end of the term or under certain conditions.
8. Exclusions and Limitations: Critical illness policies may have exclusions or limitations related to pre-existing conditions, waiting periods, and specific illnesses not covered. It is essential to review the policy terms and understand the covered conditions.
9. Premiums: Premiums for critical illness insurance are typically based on the policyholder’s age, gender, health status, coverage amount, and other factors. Premiums can vary among insurance providers.
10. Complementary Coverage: Critical illness insurance can complement health insurance by providing additional financial support for non-medical expenses that health insurance may not cover.

Summary

Critical illness insurance can be a valuable component of an individual’s financial protection plan, especially for those concerned about the financial impact of a serious illness. However, individuals should carefully review policy terms, covered conditions, and premiums to ensure that the policy meets their specific needs and financial situation. It is also advisable to consult with a financial advisor or insurance professional for guidance when considering critical illness insurance.

How USA Investment Solutions Can Help

Our primary goal is to assist families in safeguarding their financial well-being.  We partner with over 90 of the country's highest-rated life insurance companies.  We will shop them all to find you the lowest rate for the coverage and benefits, taking into account their individual needs and health status. We understand that each individual, business, and family requires a tailored life insurance solution. Our mission is to assist you in discovering the perfect plan for your needs. or complimentary quotes and consultations, please reach out to us s at (714) 794-2009, email us at [email protected], or fill out our contact form.  We're here to assist you, and there's no pressure to commit. Even if you're currently working with a professional, seeking a second opinion can offer valuable insights and perspectives.