Stopping the Financial Bleeding

The Wall Street Journal found that an alarming 75% of those who declared medical bankruptcy reported having health insurance.  Why are so many patients going bankrupt, even with health coverage?  Because as much as two-thirds of all costs related to critical illnesses are non-medical, including transportation to and from treatment, medically necessary renovations to a home, lost income, family lodging and meals purchased during an individual’s hospital stay.  All these expenses can contribute to a family’s financial distress while a primary wage earner recovers from illness and normal family income is reduced. 

Insurance agents and brokers are aware that employers are finding it more difficult to offer comprehensive group health care coverage.  New, affordable solutions can fill these coverage gaps – and a group critical illness plan may offer significant help.  Group critical illness insurance provides members and their families with a lump-sum cash benefit when it’s needed most – upon diagnosis of a critical illness.  This cash payment may be used any way an insured sees fit, whether that be paying the mortgage or taking a family vacation.

Although critical illness coverage is gaining awareness, the majority of employers and employees may have never heard of the product.  For those that have, it is often confused with major medical insurance.  Employers are more receptive to making critical illness insurance a voluntary offering once the features and benefits are fully explained.

This product is an excellent supplement to group medical plans as it can be a low-cost solution for both employers and employees.  Employees can enroll in voluntary group critical illness insurance at a low-cost group rate, and employers can provide this coverage at no cost to their business.  An average critical illness insurance plan offering about $20,000 of coverage can greatly supplement gaps in medical plan coverage – especially for those with a high-deductible plan – for just a few dollars a week.