Since its introduction in 1983, critical illness insurance has been helping families repair their finances. Critical illness differs from health insurance policies in an important way. Your health or major medical policy will reimburse your healthcare provider for covered services you obtain. A critical illness policy, on the other hand, will pay benefits directly to you when you or a covered family member receive a diagnosis of a covered illness.
Trends indicate that critical illness coverage is becoming an important part of a family’s financial plan.
You can read more about critical illness plans here.
Having medical insurance can protect you from some of the costs of a major medical problem or serious accident. However, it doesn’t eliminate the problem. More than one in five Americans under the age of 65 lived in families having problems paying medical bills, according to statistics from CDC’s National Center for Health Statistics in 2012. Even in families with health insurance, 14 percent had problems paying medical bills.
So, what can critical illness insurance do for you? When you receive a diagnosis of a covered illness, your critical illness policy can:
- Cover your deductibles.
- Cover your copayments before your health plan’s out-of-pocket maximum kicks in.
- Cover out-of-pocket expenses.
- Pay for uncovered medical expenses, including experimental and alternative treatments.
- Cover medical transportation costs.
- Replace income lost due to illness.
- Pay for home healthcare, or replace the income a family member loses to take care of you.
- Pay for modifications you might need to your living space, such as widening doors to accommodate a wheelchair, etc.