Unexpected and unwelcomed financial surprises can destroy a budget. A suddenly shredded tire on the way home from work, a broken oven on the night before Thanksgiving, or a leaky faucet causing the upstairs bathtub to flood can all lead to family belt-tightening for a month or more. Accidents such as these can even make you break into your savings or force you to seek a loan. While all this can be uncomfortable and difficult to deal with, at least you are healthy and able to continue making an income and to eventually catch up.
Everything is relative, and being suddenly stricken with a serious illness like cancer, or a coronary or a stroke makes the aforementioned financial challenges seem trivial. Are you prepared enough to have set aside enough savings, acquired enough equity or have enough credit to get you through any downtime while treating a illness? How long could you keep up with your usual-to-day expenses if you were no longer able to go to work and had to focus on your healthcare?
Critical illness insurance is designed to patch the holes inherent in regular health insurance, to help the insured to pay for the costs that are above and beyond what is covered. If you were to suddenly become sick, critical illness insurance will pay out a lump sum benefit in cash that can be utilized to pay expenses like mortgage payments, credit card bills, treatment out-of-state travel costs, needed alterations to your property to allow for necessary medical devices (like a ramp for a wheelchair) or to provide compensation for normally not covered medical treatments.
Disability insurance provided by your employer usually will only cover up to 60% of your lost income. Also, keep in mind that normal medical insurance has co-pays, deductibles and exclusions that critical insurance can assist you in paying. Even if the illness you have is treatable and you are in recovery, you will still be eligible to enjoy your benefit amount. Some policies even offer additional compensation if you are struck by a secondary illness, for example having a heart attack and then discovering the presence of cancer (God forbid).
Medical expenses can accumulate quickly lead to financial devastation. Critical Illness insurance is what can help you protect your savings and investments while also receiving the care you need.