Considering that there can be an enormous amount of medical expenses that need to be taken care of when battling a disease, critical illness insurance can help policyholders handle these expenses by providing a lump-sum, tax-free payment.
There are 3 primary categories that critical illness insurance covers: cancer, heart attack, and stroke. However, it's possible that some critical illness insurance policies could cover other conditions such as the following:
- Heart transplant
- Coronary bypass surgery
- Kidney failure
- Organ transplants
Unfortunately, more Americans are dealing with critical illnesses each year. This year alone, it's estimated that 1.4 million Americans will be diagnosed with cancer, 785,000 Americans will suffer their first heart attack, and 600,000 Americans will have their first stroke. While the good news is that the majority will survive these serious medical conditions, the bad news is the financial devastation that these medical costs create for those facing a critical illness.
According to a Harvard University study, approximately 60 percent of bankruptcies in the United States are related to medical expenses. Even more astonishing is that nearly 78 percent of people in this study had health insurance at the time of being faced with a critical illness.
It's important for your employees to realize that when they're dealing with a serious medical issue such as cancer or are recovering from a stroke, they'll still have the obligation to pay monthly health insurance premiums in addition to other living expenses such as a mortgage, insurance, and utility bills. For employees that aren't able to work during this time, these monthly expenses can quickly drain any bit of savings that you have.
Fortunately, when an employee has a critical illness policy in place, he or she can be alleviated from this overwhelming financial burden and focus on getting healthy. While today's Americans are living longer, that doesn't mean that they're living disease free, especially as their age climbs.
Since critical illness insurance rolled out in the 1990s, we've seen a number of Americans opt for this type of policy to have some peace of mind in the event that they are faced with cancer, a heart attack, or a stroke. Offering employees the option to get critical illness insurance can demonstrate that you truly care about their well-being.
To learn more about critical illness insurance and how this type of policy can benefit your employees, please contact us at Summerlin-Roberts. We'd be happy to share with you some unique ways that you can make this policy part of your employee benefits offering.