A “Critical” Coverage

You have no doubt heard about health insurance, and you may have heard of disability insurance, long term care, and life insurance — but what about critical illness insurance?

Individual critical illness insurance for federal employees offers a tailored solution to address the specific needs and concerns of this unique group. As a federal employee, you likely already have access to comprehensive health insurance through the Federal Employees Health Benefits (FEHB) program. However, even with this coverage, there may be gaps that leave you vulnerable to significant financial strain in the event of a critical illness.

Critical Illness insurance is a relatively new type of insurance. Since carriers first began offering this type of coverage, it has grown in need and popularity over the last 10-15 years — especially as employers have continued to shift more of the responsibility of rising health care costs to their employees. Employees are often surprised to find out their health insurance may not cover all costs of a critical illness, leaving them with major out-of-pocket expenses. Those expenses could wipe out any type of emergency fund that took years to accumulate.

Did you know: 62% percent of all bankruptcies in the U.S. are based on critical medical events? It’s also worth stating that out of those bankruptcies, 78% of those individuals had comprehensive health insurance.

 

 

What exactly is critical illness insurance and what does it cover?

Critical Illness insurance provides a lump sum payment to the insured that is diagnosed with a critical illness.  Typical illnesses that are covered are cancer, heart attack, stroke, coma, paralysis, major organ transplant, Alzheimer’s, loss of sight, hearing or speech, along with several others depending on the policy being offered.

Unfortunately, one in three Americans are expected to get cancer. 735,000 Americans suffer a heart attack every year. And every 40 seconds, a stroke occurs. Even with health insurance, healthcare costs begin to add up — especially in the event of serious illness. Critical Illness insurance can be used to pay for co-pays, deductibles, over the counter medicines, transportation to medical treatment, and time off work.

Medical bills are an increasingly common cause of bankruptcy in the United States. This fact makes critical illness insurance a prudent investment, especially if you have a family history of cancer, heart attack or stroke. Critical illness coverage gives you financial breathing room. For example: you could take time off work to seek medical treatment in a specialized facility across the country with the tax-free lump sum paid upon diagnosis. It could also help you pay for your treatment if your emergency fund has been depleted, or even help you pay your mortgage or buy groceries if needed.

Out-of-pocket medical expenses are rising fast and are expected to continue to increase faster than the rate of inflation. Since 2000, the cost of medical care has increased by 114.3% and continues to outpace the prices for consumer goods and services. Critical illness insurance can be a huge help to federal employees who want to cover any financial gaps in their FEHB coverage plan. This type of coverage has a cash benefit and can pay thousands of dollars over a lifetime. Don’t let an unexpected diagnosis take away from everything you’ve worked and saved for — request a free consultation on a critical illness policy today.