Health insurance gives many people the peace-of-mind that if something should go terribly wrong, they will be covered. But what if it’s not enough?

The number one reason for personal bankruptcy filings in the United States is medical bills. Steep medical costs tied to serious illness can cause individuals or families to experience severe financial hardship or even bankruptcy.

In the case of heart attack, stroke, major organ failure, end-stage renal failure, blindness, HIV, Hepatitis, and cancer, traditional health insurance plans are not enough. And, for many people, by the time they are diagnosed, it is too late to take additional action to ensure financial security.

That’s why there’s specified Critical Illness Insurance. This insurance coverage can mean the difference in a family’s financial stability during lengthy and expensive recovery periods for critical illnesses.

Here’s what you need to know about this coverage:

You only get the benefits once

Benefits of the Critical Illness policy are paid in a lump sum to the covered person to help with out-of-pocket expenses. But, each category of coverage comes with a maximum lifetime benefit. Once the category benefit is paid out, it closes; however, you can receive benefits in other categories.

There are illnesses that won’t be covered

Conditions must be serious to receive a payout. Ways of proving this are defined by your policy, and you may need to show that you have a less favorable prognosis in order to receive the benefit of the policy.

It also won’t cover pre-existing conditions. In most cases, you can purchase the policy with a pre-existing condition but if that condition causes your critical illness, you cannot collect the benefit of the policy.

It’s different from disability coverage

Although there are many similarities, the major difference between critical illness insurance and disability insurance is how you receive your payment. A Critical Illness policy distributes a one-time, lump-sum payment once your doctor has diagnosed you with that specific, covered critical illness. A disability policy will pay a monthly benefit after being diagnosed as disabled by your doctor and payment will begin only after an elimination period which is usually 90 days. The payment period will be determined by a previous set time period, usually 2 years, 5 years, or to age 65.

Contact YUR agent Don Friedman at The Yurconic Agency to learn which policy type may be right for you and to get a free quote, today! 610-770-6600 Ext. 109 or dfriedman@yurconic.com