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Understanding Critical Illness Plans

In many cases, a long-term illness can be one of the worst financial hits possible for a family. Not only do they have to grapple with medical bills over a long period of time, but also a loss of income. When Compared to something like a broken leg, where the issue will most likely be resolved with time, certain critical illnesses don’t necessarily have a set “time of recovery” and in some cases, may even end in your death, creating yet another financial hole for your family to navigate. While it’s difficult to predict these type of illnesses, critical illness plans are an option to help give you coverage in this area and help make a difficult time easier financially.


Critical Illness Insurance

Created in 1996, critical illness insurance plans were originally designed to help service a population that was growing older. Brokers realized that even with a good job and good savings, one major period of illness could leave families with insurmountable bills to pay. To navigate this, critical illness insurance provides coverage in the event of major medical emergencies. The exact conditions covered will vary from plan to plan, but some of the conditions you should expect include:
● Coronary bypass
● Heart attack
● Cancer
● Stroke
● Organ Transplants
This money generally comes in a lump-sum payment, meaning that the policyholder can act right away to pay the costs associated with their medical emergency. They can also use the money to go towards costs that are associated with their treatment but not necessarily medical in nature. These include expenses like childcare and transportation during treatment. Roughly 35% of midsize companies offer some form of critical illness insurance.


Good Supplemental Plans

While this can be a great asset for families trying to deal with the fallout of a major illness, a critical illness plan isn’t always going to be the best fit for every scenario. For example, depending on your plan, not every type of cancer may be covered and in the case of chronic conditions, you may not qualify for coverage at all. This means that critical illness insurance isn’t necessarily a substitute for life insurance. Another thing that you should understand is that some critical illness plans don’t cover the recurrence of a condition. This can include cancer coming back or even a second stroke or heart attack. Your best option as a policyholder is to always know exactly what is in your specific plan.

When it comes to critical illness plans, not all options on the table can be created equal. This can be especially difficult for federal employees, as the plans offered to them may differ in various ways from plans offered to conventional employees. In order to help cut through the jargon and understand what plans are best for you and your family, work with Secure Choice. Our benefit analysis programs help federal and postal employees with earnings projections and explaining plans so you can make a decision you are happy with. In addition, if you want more coverage, we also offer a suite of useful supplemental insurance plans.