Updated: Oct 8
Why you might consider it even if you already have medical insurance?
Critical illness insurance is a supplemental benefit designed to pay a lump sump in the event of a covered illness (cancer, heart attack, stroke, etc.). Some group plans are now offering riders to cover serious mental illness, COVID-19 and diabetes.
Your medical insurance, depending on your plan, generally covers your medical bills at a preset copay or percentage. What happens though if a service or procedure is not covered at all or you have a high deductible plan? And what about all those copays??? Serious illness is expensive even when you have insurance and can create a major financial burden wiping out your savings/emergency fund. This is where critical illness insurance may come in handy. The lump sum payout is there to help with expenses. It can pay copays, mortgage, car payments or whatever. It can be your safety net from financial disaster in the event of a serious illness.