5 Ways Critical Illness Insurance Can Be a Financial Life Saver


Almost everyone recognizes that health insurance is an important protection against the devastating financial costs of becoming sick or injured. However, many people are unaware of how helpful critical illness insurance can be. This form of insurance gives you a lump sum if you contract an illness that is covered with your policy. If you get one of the illnesses that is specified on your policy, the extra money can be extraordinarily beneficial.

Avoid Loss of Income

Having a chronic illness can be devastating when it prevents a person from going to their job. Though some people may have disability insurance or other forms of coverage, this type of insurance is usually bound by several requirements. For example, a person with cancer may not be able to work for a few days each week, but their insurance might not provide them with anything because they can still work occasionally. There are no limits of that sort on critical illness insurance. Therefore, it will let you focus on getting well instead of worrying about being back at work or stressing about your financial state. This type of income protection will help to lower anxiety while you deal with the critical illness, and it is particularly important for self-employed people who have no chance of continuing to be paid while ill.

Cover Expenses Not Included in Health Insurance

Health insurance is great, but there are plenty of expenses associated with treating a chronic illness that cannot be covered by health insurance. People with severe illness often need to travel to consult with specialists or receive innovative treatments. Though the medical processes will be covered with insurance, plane tickets and hotel fees will have to be payed for the sick person. Other examples of illness related expenses include babysitters, who may be needed to care for the children of a sick parent, or new furniture designed to accommodate a patient on bedrest. All of these small yet necessary expenses can add up to cause financial strain if you do not have extra money from critical illness insurance.

Manage Mortgage and Car Payments

The modern family tends to have several loans that require regular payment. When you are ill, your family’s property may be put at risk due to diminished earning capability. This situation is actually one of the main issues with chronic illness that this type of insurance was designed for. It was created by a heart surgeon who wanted to save his patients from the financial stress and worry that happened after they had heart attacks and were unable to work. Many financial experts recommend that you make sure your critical illness insurance is at least enough to cover two to five years of payments for essential items.

Paying for Deductibles and Copays

Many people opt for health insurance plans with high deductibles and copays. When you are healthy, this can seem like a wise move because it lowers your monthly premium. However, it can become quite problematic when you actually get sick. Even though the health insurance will be quite beneficial, you might still end up needing to pay thousands of dollars in medical bills depending on your own unique insurance plan. It also tends to cost the insurance user more to go to out of network health care professionals, and chronic illnesses often require visits to out of network specialists or emergency trips to out of network hospitals. There are a lot of out of pocket expenses associated with the typical health care plan, and paying for all of them may be difficult or impossible. Critical illness insurance helps you to avoid diminishing your savings or going into debt because of medical bills.

Renovate a Home to Aid in Illness

When a person becomes disabled even temporarily, a typical home suddenly becomes inconvenient and potentially dangerous. Plenty of chronic illnesses, such as a stroke or multiple sclerosis, can greatly incapacitate a patient. Adding ramps, wheelchair lifts, widened doorways, and tub lifts can all be extremely pricey for the average person. However, these renovations are essential to the well being and happiness of a patient, and some families are forced to take out more loans in order to add these important additions. With the lump sum payment from a critical illness insurance policy, you can upgrade your house without having to worry about breaking your budget.