Dear Toddy,
I’m an extremely active 45-year-old mom of three, have always been in great shape, and – thankfully – have never been seriously ill or diagnosed with any sort of medical issue. My family, however, has a long history of cancer and heart disease. While I attribute my active lifestyle to my love for all things running, climbing, and biking, in the back of my mind I’ve always considered it to ward off my family’s poor health history. My mom died from breast cancer at 62 and this albatross has been weighing on me more and more as I get older. Her disease not only took her life, but it also took all my parents’ savings. Is there something I can do to avoid this if the worst-case scenario happens to me, too?
~ Worried Momma
Dear Worried Momma,
The fact that you are staying incredibly active and taking care of your body is excellent! Small steps, such as eating a healthy diet and staying active, can do wonders for your health. However, you are right to still have worries, especially if your family has a history of poor health.
If you’re worried about cancer or another serious illness that would devastate your family’s finances, you may want to look into critical illness insurance. This type of insurance can be a great way to ensure your family is not crushed by medical bills should you fall ill. Unfortunately, there is usually a lot of confusion around critical illness insurance, which is why I’ve laid out answers to some of the most frequently asked questions about critical illness insurance below.
What is critical illness insurance?
Critical illness insurance pays out a lump sum should you fall victim to a critical illness. This insurance is designed to supplement traditional health insurance provided by you or your employer. Usually, health insurance plans do not cover the costs of transportation, child care, and even specific medical treatments. With critical illness insurance, you can cover the costs of these expenditures and more without having to dip into your savings or fall into debt.
If you have to use your critical illness insurance, Worried Momma, you’ll receive a one-time, tax-free, lump-sum payout of your policy’s benefit, which you can use in whatever way best helps support you and your family.
What illnesses does critical illness insurance cover?
The illnesses covered by your critical illness insurance will depend on your policy, Worried Momma. Most policies cover heart attacks, organ transplants, and cancer. Since you mentioned that your family has a history of heart disease and cancer, critical illness insurance is definitely something to consider sooner rather than later.
Unfortunately, this type of insurance can be a bit of a double-edged sword. On the one hand, if you are prone to certain illnesses, you can tailor your coverage to only cover those illnesses and save some money. On the other hand, if you want coverage for a wide variety of critical conditions, you may have to pay a bit more. Additionally, if you fall victim to a critical illness not covered by your plan, you will not receive a payout.
In your case, Worried Momma, you will want a policy that at the bare minimum covers heart disease and cancer.
Is critical illness insurance worth it?
Critical illness insurance is usually worth it if you want coverage for a specific illness. However, if you’re looking for coverage for a wide variety of diseases, you may want to weigh the costs of critical illness insurance. At some point, you may be better off setting money aside and investing it into a different life insurance plan. If you’re concerned about more than just your family’s medical history, Worried Momma, you might want to look into other life insurance options.
Advantages of Critical Illness Insurance
Critical illness insurance is great because it can be used to pay for expenses that normal health and life insurance don’t cover, such as experimental cancer treatments, childcare, or other non-medical expenses. It helps address these gaps in coverage and ensures that your family doesn’t face financial hardship if/when you fall ill.
Additionally, critical illness insurance can be very cheap, especially if you only want coverage for a specific illness. This type of insurance can also be added as a rider to your life insurance policy, making it even cheaper!
Disadvantages of Critical Illness Insurance
There are a few drawbacks to critical illness insurance. As previously mentioned, the ability to define which illnesses you are covered for is a double-edged sword! If your policy isn’t tailored correctly, there’s a chance your illness won’t be covered.
Another disadvantage of critical illness insurance is that your coverage may end once you hit a certain age. Also, it may not cover recurring issues, such as a second heart attack or stroke.
The Bottom Line for You, Worried Momma
Because it’s so flexible in coverage, critical illness insurance can get pretty complicated. If you decide to explore your options, one of Principled Life’s independent life insurance brokers will take the time to walk you through your options and make sure you get the right coverage for you and your family. Whenever you’re ready to get started, give us a call or contact us for a quote and our dedicated team will help you find the peace of mind you’re looking for, Worried Momma.