If you have been following my blog or newsletter, you know that I’ve been educating you on ways to improve your health coverage and save premium dollars without increasing your overall risk. In fact, we have improved coverage and saved money using the HSA and Accident Benefit. Now, we’re going to discuss the final part of the equation.
Example: You’ve been hospitalized for a catastrophic health
event (Cancer or Stroke) and your health plan is covering your hospitalization,
etc. You have a high-deductible HSA and
have a deductible plus bills, children’s tuition and mortgage to pay.
Question: If you are the bread winner in your family, how are you going to cover these expenses?
Answer: A Lump Sum Critical Illness Insurance plan
For pennies on the dollar, you can cover yourself and your
spouse for a Critical Illness. You may
survive but what will happen to your finances?
A good Critical Illness plan is built on a term life insurance chassis. (Meaning: you are purchasing a renewable term
life insurance plan with a critical condition accelerated benefit rider.) Basically, a Critical Illness plan covers you
while alive and pays a 100% benefit in the event you die. It rolls products like Mortgage Insurance
(expensive term-life), long-term disability (expensive), Life insurance, Cancer
insurance, etc into one affordable plan.
It can pay for everything from your car payments and school tuition to
groceries and income replacement. I
believe Critical Illness is one of the most powerful insurance products
available but, it’s one of the least know.
Q. What is the definition of a Critical Illness?
A. Invasive Cancer, Stroke, Heart Attack, End-Stage Renal
Failure, Organ Transplant, Terminal Illness, Loss of Limbs, Advanced Alzheimer’s,
Major Burns, Loss of Independent Living, Paralysis.
Q. What does “Lump Sum” mean?
A. You are paid 100% of the benefit for a diagnosis of any
of the conditions above.
Q. What if I have other insurance? Will it pay?
A. It pays in addition to other insurance.
Q. How much does it cost?
A. Sample: A 35 year old male can purchase nearly $55,000.00
of coverage for less than $35/month.
$55K could cover a lot if you a hospitalized, disabled or
die. Figuring all of us have a 1-3
chance of getting cancer and 1-4 chance of a stroke or heart attack.
There you have it.
The final brick in your insurance fortress has been laid.
Let’s review:
You saved money by purchasing a High-Deductible HSA
Qualified health insurance plan. You
have hedged for accident with an Accident Coverage. You have insured against a Critical Illness (disability,
etc) with a Critical Illness plan.
Bonus: You also have a Term Life plan build in.
Are you bullet proof? You have adequately covered yourself and protected your family,
while staying in within your budget (without over-insuring/over-paying).
Please respond with questions via comment or email. I’m happy to discuss your needs and options.
Lance Cashion
