• Critical Illness Insurance
  • August 16, 2018
Discussing Critical Illness in September

September is an Awareness Month for Ovarian Cancer, Childhood Cancer, and Prostate Cancer. It’s more likely than not that cancer has touched your life, whether you are a survivor or pertaining to your experience through seeing a loved one experience the disease.
In the U.S., the risk of developing cancer is 1 in 2 for a man, 1 in 3 for a woman. This insidious disease can strike anyone at any time. With September as a focus on the above-mentioned cancers, it’s especially good timing for a broker to engage clients about the value of a critical illness policy.

Critical illness policies cover more than cancer. Approximately 735,000 Americans suffer a heart attack each year. Every 40 seconds, someone suffers a stroke. In many circumstances, there are no warning signs and these maladies do not discriminate.
Commensurate with the physical and psychological effects of a major illness, there are important financial concerns. 62% of all bankruptcies are the result of a medical issue and 78% of people bankrupted by medical costs had comprehensive health insurance.
Most Americans are not well-prepared for a critical illness. About 55% of U.S. households could not replace a month of their income if called upon to do so. Moreover, 47% of households indicate that they could not cover a hypothetical emergency expense costing $400 without selling a possession or borrowing money.

A critical illness policy pays the insured directly and has no restrictions. The policyholder can use funds from a claim to pay for out of pocket medical expenses, prescription medications – or to pay their rent or mortgage. A critical illness insurance policy could make a tremendous difference for a substantial portion of our population.
Agents and brokers may find it challenging to introduce these policies to clients because, honestly, it’s uncomfortable for people to consider the potential for a critical illness. In certain situations, broaching the subject touches a raw nerve, regardless of good intentions

Of course, this is a natural obstacle that savvy insurance professionals know how to bridge. In the same vein as life insurance, critical illness coverage is well-intentioned and of great benefit to the client who values the peace of mind that comes with planning for the unforeseen. Clients with dependents often associate these types of insurance with fulfilling their obligation to loved ones.

The BenAdvance marketplace offers a voluntary critical illness policy that pays a lump sum of up to $20,000 directly to the insured or their spouse, who has equal coverage, upon diagnosis of a qualified critical illness. This policy is an exceptional value because it covers 10 illnesses: Life Threatening Cancer, Heart Attack, Ruptured Cerebral, Carotid or Aortic Aneurysm, Stroke, Blindness, Coma, Kidney (Renal) Failure, Paralysis, Severe Brain Damage. Also, there is no first occurrence exclusion and it is portable until age 70. It also covers dependents up to age 26.