Critical Illness Insurance Do you really need it? Or is it a waste of time?
You might have heard that critical illness insurance is a must-have for all who's about to start their life in the United States. But is it really true? What are the benefits of this type of health insurance, and what are those of regular health insurance? Is there a difference between both types for immigrants and low-income families with children? This article explores these questions and much more. It aims to give you a solid understanding of exactly what critical illness insurance is, its advantages, disadvantages, as well as the pros and cons of getting it.
In this article, I'll be referring to a critical illness insurance as "CI" (for short). So don't worry, I haven't forgotten that you're reading about health insurance.
What is critical illness insurance?
CI is a type of health insurance that's provided for people who have a high risk of becoming sick and having to spend large sums of money on their medical treatment due to an accident or disease. The good thing about CI is that it can cover any medical expenses incurred during the time in which the policy holder is suffering from an illness or condition known as "high-risk". So, for example, if someone suffers from cancer and needs regular medications and expensive treatments for it, such as chemotherapy or radiation therapy. His or her health insurance provider would pay for it.
This health insurance is given to people who are at high risk of suffering from an illness or disease that's listed in the policy's "high-risk" list. However, not just anyone can apply for it, as the person applying must meet specific criteria in order to be eligible for the coverage. Read on to find out what these are!
Who qualifies for critical illness insurance?
People who have a high risk of developing a disease or condition listed under the CI policy's "high-risk" list. So if you smoke heavily, have a family history of cancer and heart disease, and live in an area affected by air pollution, you might be eligible for critical illness insurance .
Also, if you suffer from or are at risk of suffering from the following medical conditions, you might be eligible for CI:
– Chronic obstructive pulmonary disease (COPD) – Coronary artery disease (CAD) – Diabetes mellitus – Hypertension – Ischemic heart disease (heart attack) – Kidney failure – Liver injury – Chronic liver disease – High blood pressure Who is not eligible for CI?
Currently there's no eligibility requirements for getting CI. However, in the future, there might be a certain age limit, which will require all applicants to be over a certain age. Also, there might be an income limit that prevents people in poverty from applying.
What type of people should get critical illness insurance?
If you are currently healthy, in good shape, and have no medical conditions, you probably don't need CI. However, if you're not sure about it and want to be "safe", getting CI might be a good idea for the future. However, keep in mind that all insurers have different eligibility criteria for their CI policies. So make sure to check yours before applying! Are regular health insurance plans and critical illness insurance the same thing?
People who are currently healthy might think that it makes no sense to shell out $500 or so a year (one month's payment) when they can get a regular health insurance plan for less. And they're right. Both types of health plans have different features. Here's a list of the main differences:
The main difference between regular health insurance and CI is that regular health insurance covers you for medical expenses for a very long time, generally for ten years. If you suffer any kind of illness or disease, such as cancer or heart disease , it will cost you a lot ( many thousands ) of dollars to treat it. How much is usually depends on the type and extent of your illness or condition . For example, if something as simple as pneumonia happens, it's extremely expensive to treat it. But if you suffer from a type of cancer, the cost of treating it might be even higher than your mortgage!
Other than that, regular health insurance generally covers office visits, checkups, and lab tests . On the other hand, CI will only pay for "high-risk" medical conditions. It won't cover any costs incurred from visiting a doctor or lab test related to something as simple as cold or toothache .
Both types of health insurance cover costs incurred due to accidents. But CI is more specific than regular health insurance when it comes to this. If a person suffers an illness known as a high risk , such as the ones listed above , then CI will pay for medical expenses due to that illness. On the other hand, regular health insurance will generally cover costs incurred from any type of illness or injury.
What does it mean to have a pre-existing condition?
Do you have a medical condition that you're currently treating or have been treating for some time? If you do, then you can't get CI unless your insurer declares that your condition is "stable". If it isn't, then an insurer will not give you a policy. This is called having a "pre-existing condition" and it's not very common. So don't worry if it happens to you!
A disease or medical condition is considered stable if it's clinically under control. This means that there's no change in the condition over a period of time.
For example, if your type 1 diabetes is stable, it means that you've been treating it by taking insulin, eating healthy foods and exercising regularly. If you're stable for more than a year after being diagnosed with cancer , then the insurer will consider your cancer to be stable and will probably give you a CI policy.
What does it mean to have "high-risk" status?
So far we've talked about what CI policies are and who can get them. But there's another important part of CI policies called "high risk status", which is also called "pre-existing condition".
If you qualify for CI, then your medical condition will be considered stable, so you won't be denied coverage. But if your medical condition isn't considered stable by the insurer, then it won't give you its regular health insurance. Instead, it'll give you the "high-risk" version of the policy that covers only people who have a certain medical condition.
Why might your health insurance provider "pre-declare" a pre-existing medical condition?
There are many reasons for your health insurance company to decide to make you history if they find out about one of your "pre-existing conditions". Here's a few of them:
1. You're healthy. The main reason why people think they don't need CI is that most of them are in decent health and don't have any medical conditions at all. But they might be wrong! There are many cases when people who were considered to be healthy suddenly start suffering from a serious illness or condition. This can happen due to something as simple as stress .
2. You've been sick recently, but you won't get insurance coverage for the rest of the year anyway. If you're healthy and have no medical conditions, your health insurance company will probably give you their regular plan (for that time ).
Conclusion:
So to sum up, there's no official list of who qualifies for CI, nor any guideline about the amount you should pay for CI. However, if you're in good shape and have no medical conditions, then you probably don't need CI. On the other hand, if you're currently diagnosed with one or more serious medical conditions , then getting a CI policy makes sense because it's really cheap and will protect your family from financial catastrophe .