Critical Illness Insurance: Preparing To Bridge The GapJulie Brooks
Many Americans are living without ample savings – and a lot are living paycheck to paycheck. When these families are struck with an unexpected illness such as a heart attack, stroke, or cancer, it can cause a serious financial hardship… even if they have health insurance.
The average annual individual income in the United States is ~$35,000 – and most health insurance policies carry at least a $5,000 or $10,000 out of pocket max that will easily be reached when suffering from a critical illness.
On top of that, any one of these illnesses will undoubtedly result in an absence from work for an extended period of time – causing the loss of valuable income at a time when they are experiencing increased expenses.
This combination of out-of-pocket healthcare costs, loss of income, and mounting household expenses come together to form ‘The Perfect Storm’, which too often leads to a bankruptcy.
Bankruptcies resulting from unpaid medical bills make health care the No. 1 cause of such filings, and outpacing bankruptcies due to credit-card bills or unpaid mortgages.
Even having health insurance doesn’t buffer consumers against financial hardship.
Most advisors sell life insurance to protect their clients should the bread winner not make it home from work one day. But how can we protect our clients against financial catastrophe if the heart attack, stroke, or serious illness doesn’t amount in a premature death?
Critical Illness Insurance pays a tax free lump sum payment on diagnosis of any one of a list of serious illnesses – including cancer, heart attacks, or stroke.
Claims statistics suggest we are five times more likely to suffer from one of these issues, than we are to die before we reach age 65. You don’t want to get a call one day, find out something has happened to a client, and regret having never discussed the opportunity to purchase a Disability Income or Critical Illness Plan with them – have the discussion with each of your clients as soon as possible.
Insurance Advisors is well versed on the features and benefits of Critical Illness Coverage – contact us for assistance today.