What Is Critical Illness and Is It Really Necessary?

According to the American Association of Critical Illness Insurance, the chances of being diagnosed with a critical illness before age 65 are:

  • 25% for a 25 year old male who doesn’t smoke.
  • 49% for that same 25 year old male who does smoke.
  • 25% if you are a 25 year old female that doesn’t smoke and
  • 36% if that 25 year old female smokes.

Critical illness insurance provides financial protection when a major illness occurs. It can be used any way you see fit including covering medical bills that are not typically covered by medical insurance, mortgage payments and other living expenses. Critical illness doesn’t pay for each medical bill; it pays a lump sum to the insured and you decide what you want to spend it on.

Critical illness can be especially useful for individuals that are in a high risk job that makes it difficult to qualify for disability insurance. Occupations such as long haul truck drivers, firefighters and police officers find it difficult and expensive to purchase disability insurance yet they will likely qualify for critical illness coverage.