Cancer and stroke insurance supplements pay a predetermined benefit amount upon diagnoses of a critical illness such as heart attack, stroke, invasive cancer, kidney failure, organ transplant, and coronary artery bypass. This supplement is also referred to as a Critical Illness Insurance Plan. These supplements are commonly purchased to cover out of pocket exposure and deductibles with a current HDHP (high deductible health plan). Deductible is the out of pocket expense a person has before the insurance policy pays. Many major medical insurance policies in the United States have large deductibles that don’t cover the initial emergency room visit. Increasing your medical insurance deductible each year is a good strategy to keep monthly premiums affordable. It seems medical insurance companies do rate increases every 12 months even if you don’t use it?
A family with a $5,000 deductible health insurance plan could end up paying that $5,000 out of pocket deductible if someone gets injured or is rushed to the ER from a heart attack (or other life threatening sickness). Personal accident insurance plans and a cancer heart health insurance policy do a good job covering this emergency room coverage gap with or without other forms of health insurance in place. These indemnity style plans are opposite to a high deductible health plan because supplements pay out immediately and have little or no deductible. Indemnity insurance basically compensates a person for a financial loss (hospital or doctor bill) up to a predetermined sum amount. So consider this style of plan a compensation insurance. A lot of people seek out indemnity plans or compensations style insurance because policies are more predictable and less elusive on how much they will actually pay. It seems with some major medical insurance companies, you just submit the claim and keep your fingers crossed they’ll pay and not try to weasel out of the bill. In my opinion, indemnity supplements have less ways of backing out of paying then a traditional PPO and are more reliable with claim handling.
Critical Illness insurance plans can have different benefit amounts. A common benefit amount for cancer and stroke insurance plans is $10,000 US dollars. Not only does the benefit amount (policy face value) differ on critical illness plans, but so does the underwriting. Some plans have minimal underwriting and some are guarantee issue with zero health questions. If you’ve already had a cancer diagnoses, or suffered a heart attack, look for supplemental cancer insurance plans that are guarantee issue. These guarantee issue plans won’t pay for any preexisting conditions for the firs year, but after 12 months of paying for the policy future benefits can be paid.
Here’s the monthly rates from the leading plans with this $10,000 benefit:
Individual and Spouse Plan Monthly cost: $48.00 US Dollars
Individual Plan Monthly cost: $25.00 US Dollars
These types of cancer heart health insurance policy cover medical expenses related to: Heart attacks, Stroke, Invasive cancer, Kidney (renal) failure, Major organ transplants, and Coronary artery bypass grafts.
The $10,000 lump sum cash payment can be used for treatment however the member chooses. If someone already has a HDHP (high deductible health plan), the $10,000 cash benefit would most likely be used to pay off the primary health insurance deductible. A huge percentage of health insurance deductibles (deductible= dollar amount you pay before insurance plan pays) are met from the initial emergency room visit. People rarely eat up a $5,000 dollar health insurance deductible from a routine doctor visit for a Cold or Flu. However, health insurance deductibles are being maxed out from emergency room visits resulting from a bodily injury or life threatening sickness like heart attacks or stroke. Not to mention that when hospitals and doctors figure out you have good health insurance they’ll be happy to max out that deductible for you. So we can see that emergency room coverage is not only the most practical for the real world, but even people with a major medical catastrophic plan can end up with a huge ER bill despite having insurance.
The good news is that accident insurance plans and some cancer and stroke insurance supplements are guarantee acceptance and the monthly cost is reasonable. As the cost for medical insurance in the United States increases, so should our understanding of insuring areas that are important and practical. Emergency room coverage is a clever use of monthly health insurance dollars spent and everyone can qualify. ER supplements can be used as a “stand alone” personal plan, or to cover a high deductible health insurance plan.