Critical Illness Insurance
Receiving a diagnosis of cancer, a heart attack, or other unexpected health crisis can leave you unable to generate income, compounding emotional stress with financial strain. Despite this, your mortgage or rent, along with other monthly expenses, still require payment. Moreover, medical expenses can swiftly accumulate, potentially overwhelming you if you're unable to work.
Critical illness insurance provides a lump-sum benefit payout upon diagnosis of a specified critical illness or condition outlined in the policy. This financial support can alleviate the burden associated with critical illnesses, allowing you to prioritize your recovery without worrying about financial obligations.
Why Do I Need Critical Illness Insurance?
The uncertainty of developing critical illnesses like cancer, heart attacks, or strokes underscores the importance of preparation. These conditions not only demand dedicated treatment but also pose significant financial challenges. Medical bills rank as the leading cause of bankruptcies, affecting an estimated 56 million Americans under 65. Even with comprehensive health insurance, substantial deductibles and co-insurance expenses may still be required. Critical illness insurance serves as a safeguard against these financial burdens. Providing a lump-sum benefit payout, it can cover medical expenses, mortgages, and other financial obligations. Additionally, policy benefits can be utilized for experimental treatments or travel expenses not covered by standard health insurance.
How Does Critical Illness Insurance Work?
Critical illness insurance entails regular premium payments to maintain the policy's validity. Policies vary, with payouts ranging from $10,000 to $1 million, contingent upon the specified conditions outlined in the policy, typically covering cancer, heart attacks, strokes, and sometimes heart disease, kidney failure, organ transplant, paralysis, and other illnesses.
Upon diagnosis of a covered condition during the policy term, the insurance company disburses the policy's face amount, usually in a tax-free lump sum payment (consult with a tax professional for personalized tax advice).
Choose RFG For Critical Illness Insurance
At RFG Coverage, we prioritize delivering an independent and impartial approach to addressing our clients' insurance requirements. Instead of focusing solely on selling a particular product, we dedicate time to comprehend your unique circumstances, including your goals, objectives, and budget. With this insight, we leverage our access to over 30 insurance carriers to procure coverage that aligns perfectly with your needs. Securing critical illness insurance while you're in good health is a valuable investment for your future self and your loved ones. To delve deeper and obtain a quote for coverage, reach out to us today.
Frequently Asked Questions
Q: What are the advantages of Critical Illness Insurance?
The main advantage of a critical illness insurance policy is the peace of mind that comes with knowing you and your family will have cash available to cover your expenses in the event you become seriously ill. You get to choose how the money is spent: use it to pay for treatment costs that aren't covered under your health insurance policy, to cover your monthly obligations, to replace your spouse's income so he/she can care for you, etc. The choice is yours.
Q: Can I afford Critical Illness Insurance?
Critical illness insurance can be surprisingly affordable, especially if you are young and relatively healthy when you purchase the policy. When you weigh the policy premiums against the potential impact to your finances from not having coverage when you need it, buying a critical illness insurance policy just makes sense.
Q: Do I qualify for Critical Illness Insurance?
Some policies offer simplified underwriting, meaning you may be asked a series of health-related questions and may not need a medical exam. For higher value policies offering larger lump sum benefits, you will need to qualify for coverage based on medical exams and tests. In general, most healthy individuals qualify for critical illness coverage. Because this type of policy is designed to pay out benefits in the event you are diagnosed with a critical illness, you cannot purchase the policy if you already have a critical illness.
Q: When should I buy Critical Illness Insurance?
Of course, none of us ever want to be diagnosed with any type of critical health condition, but there's no way to guarantee that won't happen. For a critical illness policy, your premiums will be based on your age, so purchasing a policy at a younger age can make the policy even more affordable.