If you’re lucky, you’ve probably never had to use critical illness insurance (sometimes called catastrophic illness insurance). You’ve maybe never even heard of it. But in the event of a big health emergency, such as cancer, heart attack or stroke, critical illness insurance could be the only thing protecting you from financial ruin. Many people assume they’re fully protected with a standard health insurance plan, but the exorbitant costs of treating life-threatening illnesses are usually more than any plan will cover.
Why It May Be Important
You can purchase critical illness insurance on your own or through your employer (many offer it as a voluntary benefit). Adding it to a current life insurance plan may also save you money. A big draw of critical illness insurance is that the money can be used for a variety of things, such as: – To pay for critical medical services that might otherwise be unavailable. – To pay for treatments not covered by a traditional policy. – To pay for daily living expenses, enabling the critically ill to focus their time and energy on getting well instead of working to pay their bills. – Transportation expenses, such as getting to and from treatment centers, retrofitting vehicles to carry scooters or wheelchairs, and installing lifts in homes for critically ill patients who can no longer navigate staircases. – Terminally ill patients, or those simply in need of a restful place to recuperate, can use the funds to take a vacation with friends or family.
The Bottom Line
Protecting yourself against that financial hardship should be given consideration, especially if you have a family history of any of illnesses. Critical illness insurance can alleviate financial worry in the event that you become too sick to work. It provides flexibility in that the money paid out can be used as you wish, to cover a wide variety of potential needs.