Critical illness insurance

cancer, stroke or heart attack translates to extra expenses not covered by regular medical insurance

Critical illness insurance is a supplemental insurance that covers specific medical conditions like cancer, heart disease and stroke. It is estimated that a majority of U.S. bankruptcies and home foreclosures can be traced to a catastrophic medical event. The U.S. Department of Health and Human services estimates that about 75% of those who were without health insurance for more than six months and then covered by a federally funded insurance plan were cancer patients.

Critical illness translates to tens of thousands of dollars in lost income, uncovered medical expense and other foreseen financial challenges. The additional insurance benefits, paid directly to you in cash to use as necessary, go a long way toward addressing these additional expenses. Assurant Emplpyee Benefits writes "Thirty years ago, the family of a victim of a heart attack or stroke was more likely to have to contend with the loss of a loved one. Now, (according to CDC mortality statistics) advances in medicine, prevention, improvement in early detection and other health care innovations have led to higher survival rates of these and other critical illnesses. With the improved survival rate from catastrophic illnesses often comes the necessity of continuing medical care and related expenses. Today, the average cost of survival for a heart attack or stroke patient is $100,500 (according to American Heat Association, 2010). Unfortunately, many of these costs are not covered by standard medical insurance". Dr. Polly Galbraith sums up the current situation saying “Higher survival rates should be celebrated, not the cause of added anxiety.”

Freedom Benefits offers critical illness insurance coverage underwritten by Zurich American through Consumers Direct. This association benefit plan is one of the few critical illness policies available to consumers outside of an employer-sponsored plan.

About the author - This Web page and related content is written and periodically updated by consumer finance writer Tony Novak, CPA, MBA, MT who is also a life and health insurance agent in all 50 states and DC. Comments, questions, feedback and updates are welcome to help keep content relevant and up-to-date. Contact the author directly by e-mail, on Twitter or through the contact information included on his Web site. Article reprint rights as well as specifically customized content may be available on request. Some content may be offered for reprint without charge; other content will be offered for a fee that exceeds the minimum amount regulated by international Web copyright laws. Reprint is not permitted without written license.