What is Critical Illness insurance? Critical Illness insurance, also known as Critical Care insurance or Critical Illness coverage, pays a lump sum cash benefit directly to the policyholder in the event of a qualifying serious illness.
If you’re not prepared, getting sick can be risky not just to your health, but to the financial situation of you and your loved ones, too. Having a Critical Illness policy in place can help reduce the financial burden and lead to less stress during recovery.
Primary health insurance helps cover medical costs if you get sick, but it doesn’t cover everyday living expenses while you’re out of work. Bills can pile up quickly. How close are you to meeting your health insurance deductible? Do you have enough savings to cover it? Will you have anything left for your other bills? These are the last questions you want to worry about if you’re seriously ill.
Ask yourself this – If you were unable to work for an extended period of time, could you continue to pay your mortgage or other household bills? Do you have an emergency fund set aside for an unexpected critical illness or serious medical condition?
If you answered “no” to these questions, you may want to consider UnitedHealthOne® Critical Illness insurance underwritten by Golden Rule Insurance Company. A Critical Illness plan may help you shift your focus more on your recovery and less on your expenses.
It’s simple. You choose 1 of 5 Maximum Lifetime Benefit amounts: $10,000, $20,000, $30,000, $40,000 or $50,000. Your benefit pays out upon first diagnosis of a qualifying illness experienced at least 30 days after the plan becomes effective.
Your Critical Illness
You are given your first diagnosis of a qualifying illness after the 30-day waiting period
You receive cash
benefit in lump sum
You use your cash
as needed to cover
You have a tax advantage with your Critical Illness coverage. Typically, money received from Critical Illness insurance is not taxable.
Questions with “yes” or “no” answers for simplicity.
Use the money as you see fit to cover expenses associated with a critical illness.
The choice of benefit level helps to give you control over the cost of your plan: $10,000, $20,000, $30,000, $40,000, $50,000
A Critical Illness plan can be purchased standalone or bundled with your existing health insurance plan(s). Combining multiple plan types can help you get the coverage that’s right for you. Pair this plan with Short Term Medical, Dental, and Vision for a well-rounded package.
Ultimately, that decision is yours and unique to your situation. You can’t predict the future, but you can be prepared. Critical illness insurance can help supplement your income if a critical illness strikes.
Again, that’s ultimately up to you and the needs of your situation. But consider obtaining enough coverage for 2 years of mortgage payments as recommended by The American Association for Critical Illness insurance.8
Your Critical Illness policy pays for:
Good candidates for a Critical Illness plan include:
Yes, there is a 30-day waiting period on Critical Illness benefits. First diagnosis must be made at least 30 days AFTER your effective date.
2 Source: American Heart Association, Heart disease and stroke statistics—2016 update: A report from the American Heart Association [published online ahead of print December 16, 2015]. Circulation. doi: 10.1161/CIR.0000000000000350. http://professional.heart.org/idc/groups/ahamah-public/@wcm/@sop/@smd/documents/downloadable/ucm_480086.pdf.
8 Consult your tax advisor; restrictions may apply.
10 American Association for Critical Illness Insurance, 2011.
11 Diagnosed more than 90 days after effective date.