Critical Illness insurance was invented by physician Marius Barnard in South Africa in 1985 due to the personal financial ruin he observed in his patients with catastrophic health conditions. Barnard felt that insurers needed a product to better help consumers cover the expenses associated with certain critical conditions. The problem being the unique needs of each consumer after a critical diagnosis.
Both the direct and indirect costs associated with these illnesses can quickly become a significant financial burden. Critical illnesses are now the leading cause of bankruptcy in the U.S. and most of the individuals and families suffering medical bankruptcies have health insurance.
The lump-sum cash payments from Critical Illness coverage can range from $5,000 to as much as $1 million dollars. A critical illness diagnosis triggers the payment, though some plans do contain a waiting period.
One must also consider the rising deductibles of many health plans along with most prescription coverage paying only partial costs. If life-saving treatment is tens of thousands of dollars, consumers may not be prepared to deal with their portion of these costs.This benefit can help pay for things like:
Costs for coverage can vary from one insurer to another. Therefore, it pays to work with knowledgeable professionals, like the experts at Austin, who have access to coverage from multiple insurers. We can make sure you or your business get the best coverage for the lowest cost. Contact us today for help!
Check out our Critical Illness slideshow for more information about this coverage as well as a comparison to Disability Insurance.
Part One: A Short History of a New Product, Health Section News