Critical illness insurance provides financial security if a person becomes diagnosed with a critical health condition, including cancer, a heart attack, or a stroke.
Critical illness insurance provides financial security if a person becomes diagnosed with a critical health condition, including cancer, a heart attack, or a stroke. Many assume they will have financial protection with a standard health insurance plan. However, life-threatening diseases can be costly, if not financially crippling.
These costs can add up to more than what a traditional health insurance plan can cover. Fortunately, Malden Solutions can help employers offer their employees critical illness insurance. Here are a few primary things that you should know about critical illness insurance.
When Was Critical Illness Insurance Created?
You might have guessed that an insurance company created critical illness insurance. However, an article published by LinkedIn reported Marius Barnard, a South African cardiac surgeon, as the inventor.
In 1967, Barnard was a part of a team responsible for performing the first human-to-human heart transplant. Barnard helped many of his patients fully recover from their illnesses and survive heart disease. However, over the years, he noticed that his patients struggled financially and often couldn’t return to work in full capacity because of the “lingering effects of their illnesses, surgeries, medications, and recoveries.”
The goal of critical illness insurance was for anyone with cancer, anyone who suffered from a stroke or heart attack, or anyone who had coronary bypass surgery to be able to:
- Pay down their mortgages
- Pay for drugs and expenses not covered by health insurance
- Use this insurance as an income replacement while the policyholder is off work for recovery
- Make modifications to the home to accommodate reduced mobility
- Replace a spouse’s income so they can take off work to care for the policyholder
In 1983, Barnard, along with the assistance of an insurance company called Crusader Life, introduced this policy to the market. In 1991, critical illness insurance came to the UK. Then, in 1997, critical illness insurance made its way to Canada and the United States.
The Pros of this Policy
This insurance plan is cost-effective. Some policies can cost as low as $25 a month. The more illnesses your plan covers, the more expensive it can be. Age also plays a factor in the affordability of all health insurance plans. However, compared to out-of-pocket medical costs from surgeries and specialized medications, it’s still safe to say that this policy is cost-effective.
Also, consider that critical illness insurance doesn’t only cover medications and surgeries. It has a payout benefit that can serve as an income replacement.
What Are the “Critical Illnesses?”
Besides stroke, cancer, a heart attack, and coronary bypass surgery, paralysis, renal failure, and organ transplants are covered conditions. Each plan varies.
The Caveats of Critical Illness Insurance
Some policies don’t cover all types of cancers. For that reason, you have to pay attention to what your plan covers. Also, some plans might not provide another payout if the critical condition occurs more than once. Our experts will thoroughly walk you through the stipulations of each plan to ensure that your employees have a comprehensive plan.
Contact Malden Solutions today to learn more about our comprehensive and voluntary benefits that you can offer your team to have a competitive edge and show that you care about your valuable employees.
Partner with Malden Solutions Today
Malden Solutions has a wealth of expertise in providing employer insurance solutions, HR solutions, and individual insurance solutions to businesses both big and small. Our team of seasoned professionals can help you navigate the rapidly-changing world of insurance with ease. We partner with businesses and individuals throughout the country to provide our dedicated services for employee benefits but also work within our surrounding communities in Maryland, Northern Virginia, and Washington, D.C. Contact us today to learn more about how we can provide effective, dynamic solutions for your business. Stay connected with us on Twitter, Facebook, and Linkedin.