Critical Illness coverages can provide money to replace lost income and to pay the expenses not coverage by your medical insurance. Studies have shown that medical insurance covers only about 40% of the true cost of a serious disease such as disease. In addition to medical coinsurance and deductibles, there is loss of income to contend with. The person that is off sick may have disability income insurance to help with this but often the spouse has to also miss work and there is nothing to replace their income. And, if it is their child that is sick,often both will miss work with no income replacement. When you add all the additional expenses of travel, special diets, transportation, child care, etc. the additional expenses can be devastating to a family. One thing I had never thought of before I had a bout with cancer was clothing expenses. I went from 215 lbs to 140 lbs which meant i had to buy new clothes. Now that I am at 185 lbs, my fat clothes don't fit and my skinny clothes don''t fit so I have to buy more.
Critics of Critical Illness insurance say it is not a good buy because you might have a condition that is not covered under the policy but if you bought a plan that covered every possible event, the cost would be prohibitive. However, you can buy coverage for some of the most common serious conditions at a very reasonable premium. I have never had a cancer patient tell me that their caner or CI policy was a bad buy.
Critical illness insurance pays cash to the insured person if they suffer a heart attack or stroke, are diagnosed with life threatening cancer, and/or some other serious illnesses. Obviously, this money can be extremely useful at such a difficult time. The question is, how likely is it that you will have such an occurrence? Looking at your family history, how long relatives have lived, and your own medical history can possibly help you make your decision.
In my opinion, however, there is a more economical type of life insurance that you can get now, that pays the face amount out upon the death of the insured person, as is normal with term life insurance. But it also allows you to take up to 95% of the face amount in cash, while still alive, if diagnosed with a critical illness or unable to care for yourself. If you do use the face amount while still alive, the death benefit is reduced.
In essence, if you are not diagnosed with a critical illness, the term life insurance policy with living benefits I described above will still pay out upon death. In contrast, critical illness insurance only pays out upon diagnosis of a critical illness. With term insurance, there is a chance that you will neither have a critical illness OR die while the policy is in effect. But your chances of your policy paying out are increased since it covers both critical illness and death. And the policy is able to be changed to permanent insurance at any time during the term, extending both the critical illness and death benefit protection to the end of your life at any age.
Several companies sell life insurance with "living benefits". I prefer the product I described above because of some great features, including the ability to get up to $500,000 without an exam and surprisingly affordable price. Please contact me if you'd like a quote.
.JPG){kind=avatar}
Critics of Critical Illness insurance say it is not a good buy because you might have a condition that is not covered under the policy but if you bought a plan that covered every possible event, the cost would be prohibitive. However, you can buy coverage for some of the most common serious conditions at a very reasonable premium. I have never had a cancer patient tell me that their caner or CI policy was a bad buy.
In my opinion, however, there is a more economical type of life insurance that you can get now, that pays the face amount out upon the death of the insured person, as is normal with term life insurance. But it also allows you to take up to 95% of the face amount in cash, while still alive, if diagnosed with a critical illness or unable to care for yourself. If you do use the face amount while still alive, the death benefit is reduced.
In essence, if you are not diagnosed with a critical illness, the term life insurance policy with living benefits I described above will still pay out upon death. In contrast, critical illness insurance only pays out upon diagnosis of a critical illness. With term insurance, there is a chance that you will neither have a critical illness OR die while the policy is in effect. But your chances of your policy paying out are increased since it covers both critical illness and death. And the policy is able to be changed to permanent insurance at any time during the term, extending both the critical illness and death benefit protection to the end of your life at any age.
Several companies sell life insurance with "living benefits". I prefer the product I described above because of some great features, including the ability to get up to $500,000 without an exam and surprisingly affordable price. Please contact me if you'd like a quote.