The AFE Critical Illness plan provides cash benefits for cancer, heart attack, stroke and certain other illnesses to help cover out-of-pocket medical and other non-medical expenses. Insureds can use the lump sum benefit payment for any purpose they choose, such as paying deductibles, co-pays, coinsurance, childcare, transportation costs for themselves or family members, loss of income, or any other financial need.
If you’re lucky, you’ve probably never had to use critical illness insurance (sometimes called catastrophic illness insurance). Perhaps you’ve never even heard of it. But in the event of a big health emergency, such as cancer, a heart attack, or a stroke, critical illness insurance could be the only thing standing between you and financial ruin. Many people assume they’re fully protected with a standard health insurance plan, but the exorbitant costs of treating life-threatening illnesses are usually more than any plan will cover. Read on to learn more about critical illness insurance and whether it’s something you and your family should consider.
Key Takeaways:
- Critical illness insurance provides additional coverage for medical emergencies like heart attacks, strokes, or cancer.
- Because these emergencies or illnesses often incur greater-than-average medical costs, these policies pay out cash to help cover those overruns when traditional health insurance may fall short.
- These policies come at a relatively low cost. However, the instances that they will cover are generally limited to a few illnesses or emergencies.
Many people are now choosing high-deductible health plans, which can be something of a double-edged sword: Consumers benefit from relatively affordable monthly premiums but can find themselves in a real pinch if a serious illness strikes.
Critical illness insurance can pay for costs not covered by traditional insurance. The money can also be used for nonmedical costs related to illness, including transportation, childcare, and so on. Typically, the insured will receive a lump sum to cover those costs. Coverage limits vary—you could be eligible for a few thousand dollars all the way up to $20,000, depending on your policy. Policy pricing is impacted by several factors, including the amount and extent of coverage, the sex, age, and health of the insured, and family medical history.
Like any form of insurance, make sure to read the policy carefully. The last thing you want to worry about is your emergency plan.
This is only a brief overview. Please refer to one of our brochures or our website for full information about policy plan design, limitations, exclusion, state approvals and other information.
Health benefit plans are available only to AFE members. If you're already a member, please contact us to request more information.