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Quick Look Best Critical Illness Insurance Carriers:
Even if you have health insurance, recovering from a critical illness can take a serious financial toll on you and your family. Depending on the severity of the condition, you may not be able to return to work for weeks or months, during which time your family may struggle to pay day-to-day expenses. Critical illness insurance is a unique type of protection that can potentially save you from being forced to file for bankruptcy if you’re diagnosed with a critical illness or condition.
The Best Critical Illness Insurance
When it comes to facing a critical illness, having a comprehensive health insurance plan can sometimes only be half of the battle. If you’re severely injured or you contract a major illness, you may need to undergo multiple surgeries and periods of bed rest until you’re fully healed. A recovery period like this means everything from taking time off from work to scheduling assistance with day-to-day tasks like doing laundry and cooking meals, which can put even a well-prepared family under financial stress.
Critical illness insurance can help you pay for things that your health insurance doesn’t cover while you’re recovering. From alternative medicine to groceries and mortgage payments, critical illness insurance coverage can help you rest with the peace of mind that comes with knowing you’re protected in the event of a life-threatening illness.
If being unable to work would mean serious financial trouble for your family, you should consider a critical illness insurance policy. Begin your search with a few of the recommended providers below.
Mutual of Omaha
Mutual of Omaha can be a viable choice for your critical illness insurance if you’re looking for a policy with flexibility. Mutual of Omaha allows you to choose a benefit amount between $10,000 and $100,000, and you can also choose a term as short as 10 years or as long as a lifetime. You’ll receive your benefit as a lump sum, and you can use it in any way you choose. Mutual of Omaha’s coverage is also notable because it includes coverage for conditions not covered with other insurance providers like blindness and deafness.
Coverage from Mutual of Omaha is available for applicants between the ages of 18 and 64. While you must work with an agent before you can get a quote, this feature can be a benefit if you prefer a more personalized insurance shopping experience.
Liberty Mutual’s critical illness insurance policies can be a smart choice if you’re looking for the most affordable rates on the market. Coverage is available from just $12 a month, and you can sign up for a policy entirely online. Critical illness insurance policies are available with benefits up to $50,000 — and many applicants will be covered the same day they apply for a policy.
While Liberty Mutual’s low monthly pricing is affordable, it is only available in a limited number of states. These critical illness insurance policies also require that you complete a medical questionnaire and make it through a waiting period to determine any pre-existing conditions before your coverage begins.
Life insurance as an investment tool
AIG Life Insurance is known as one of the biggest insurers in the entire world. Its services are offered to millions of customers throughout more than 80 countries. The agency also provides a wide range of insurance and investment products for businesses. According to Fitch and S&P, an A+ rating best suits AIG Life while an A2 rating from Moody’s alon and an A rating from AM Best perfectly supports just how much of a positive reputation the company radiates overall. AIG Life proves that there is more than term life insurance and the ability to cover everything is possible.
- Life insurance as an investment tool
- Parents, individuals and businesses
- Anyone in need of several insurance options
- Unique variants of traditional life insurance policies
- Variety of term lengths for term life policies
- Business services offered to help protect your bottom line
- Multipolicy discounts available
- Low score for customer satisfaction
- Unavailable in some states (New York and Maine); some states only available online (Pennsylvania)
If you’re searching for a policy with the highest possible benefit, you might want to consider exploring insurance options with AIG. AIG offers critical illness insurance policies with benefits of up to $500,000, which is significantly higher than competitors. You can also purchase a policy that’s valid for your entire lifetime through AIG if you choose.
AIG also allows you to customize your policy through optional riders. For example, you can purchase enhanced critical illness coverage, which extends AIG’s standard critical illness insurance to include additional coverage of more than 50 conditions. AIG also offers coverage for children under your policy up to 75%.
Aflac offers guaranteed critical illness insurance policies. This means that you won’t need to complete a health questionnaire before you’re approved for a policy. Every dependent child in your household is also covered under your Aflac policy at 50% of costs incurred. Aflac also claims that most of its payouts are issued just a few days after they’ve been submitted.
Aflac’s critical illness insurance coverage extends to the most common conditions covered on these policies as well as some unique inclusions (like coverage for bone marrow transplants). Though Aflac’s coverage limits are lower than some competitors — you can buy a policy with a benefit of up to $20,000 — its benefits for dependent children can make Aflac a strong choice for families.
How Does Critical Illness Insurance Work?
Critical illness insurance is an additional protection you can purchase that will help you cover expenses beyond your medical bills following a diagnosis of a critical illness. Some things that critical illness health insurance can pay for may include:
- Coverage for treatments not traditionally covered by health insurance
- Day-to-day living expenses while you are unable to work because of your condition (rent, mortgage payments, groceries)
- Transportation to and from appointments at treatment centers
- The cost of modifying your home or vehicle to meet safety standards based on your condition — for example, outfitting a van with a wheelchair ramp)
These policy benefits are typically paid out in cash, meaning that there are a range of options on how you can use your payout. If you’re terminally ill or you need a place to recuperate following a major diagnosis, you may even be able to use your insurance payout to take a vacation with loved ones.
Critical illness insurance is not the same thing as health insurance — while you can depend on your health insurance to pay for your treatments no matter your condition, critical illness insurance policies usually only offer coverage in limited circumstances. For example, your insurance policy might specify that you can only file a claim following a heart attack, stroke or cancer diagnosis. This limitation on coverage is part of the reason why these policies are exceptionally affordable.
The Advantages of Critical Illness Insurance
Even if you have health insurance, you may want to consider a critical illness insurance policy. Some of the most important benefits you’ll have access to when you purchase this type of insurance policy include the following.
Assistance paying for health insurance-related costs: Even if you have a fantastic health insurance policy, your insurance won’t cover some expenses following a critical illness diagnosis. If you have a critical illness insurance policy, you’ll have assistance paying your deductible, copayments and coinsurance charges. When used together with your health insurance, these two coverages can make finances following an accident significantly more manageable.
Affordable coverage: Critical illness insurance is very affordable. Depending on your coverages and the company you work with, you might pay as little as $12 a month for your critical illness insurance coverage.
Paid out in a lump sum: When your claim is approved following a critical illness diagnosis, you’ll receive your payment as a lump sum of cash. This means that you can use the benefit in any way that you see fit.
Drawbacks of Critical Illness Insurance
Some of the drawbacks of investing in critical illness insurance include the following.
Limited coverages: Critical illness insurance is affordable because it offers coverage only after very specific diagnoses. You may not ever end up using the benefits that you’ve paid for. Be sure to review your list of covered conditions before you purchase a policy to be sure that you know when your insurance does and does not apply.
Not everyone will qualify for coverage: Insurance companies place limitations on who can and cannot enroll in a critical illness insurance policy. For example, if you’re over the age of 64, you’ll have a very tough time finding an insurer to provide you with coverage because major illnesses are much more common past this age. If you have a pre-existing condition, it will also likely be excluded from coverage.
Frequently Asked Questions
Is it worth it to get critical illness insurance?
Critical illness insurance can be worth the expense in many cases. If you’re diagnosed with a critical illness that qualifies you to file an insurance claim, the benefit that you’ll receive will usually eclipse the amount of money that you’ve spent in premiums. This is because critical illness insurance is a relatively affordable protection.
If you were forced to take time off of work to recover from a major diagnosis, think about what type of financial stress this would cause for your family. If your income is crucial to your family’s basic needs, it’s worth considering buying a policy.
How much does critical illness insurance pay out?
The amount of money that you’ll receive from your critical illness insurance varies depending on what you choose when you enroll in a policy. The higher the benefit you choose, the more you’ll pay per month for your coverage.