Is critical illness insurance worth it?

The Centers for Disease Control reports that in a given year, about 805,000 people in the US have a heart attack – that's one every 33 seconds.¹ Thousands more have strokes or are diagnosed with cancer and other critical illnesses. And when health issues like these strike, there are almost always unexpected expenses that arise. A critical illness insurance plan can help protect your financial well-being by directly paying you a lump-sum payment that can be used for any purpose.

What is critical illness insurance?

Critical illness insurance is a type of supplemental health insurance that provides financial support when you or a covered dependent is struck with a covered severe ailment. It pays a lump-sum benefit directly to you and you can use your benefit for things like paying your health insurance deductible or other out-of-pocket medical expenses. Like other types of supplemental health insurance plans, it's not a substitute for health insurance that covers your medical bills. But, the added benefit payments provided by critical illness insurance can help at a stressful time so that you can focus on recovery. And coverage may be available as a workplace benefit, giving you this protection at affordable group rates not typically given to individuals.

How does critical illness insurance work?

Plans vary, but coverage tends to be affordable, and once you sign up, the cost is conveniently deducted from your paycheck. The claims process tends to be simple. If you or a covered family member have a covered illness or health event, you contact the insurance company directly, provide a doctor or hospital bill, and soon after, the benefit payment will be sent to you. How much will you get? That depends on the policy and the specific health issue.

What’s covered – and not covered?

Some insurance carriers provide benefits for more health issues than others, so it's important to check what's covered before signing up. Subject to state restrictions and plan limitations, Guardian plans cover many illnesses, including certain chronic conditions such as multiple sclerosis (MS) and Parkinson's disease. Benefits may also be paid for certain measures taken to prevent a critical illness, such as a mastectomy.

What's not covered? Critical illness plans typically don't pay benefits for injuries like broken bones (which are usually covered by accident insurance), and policies may exclude a pre-existing condition. Also, many common chronic conditions, like asthma , aren't usually covered. Again, a plan's schedule of benefits should clearly define what is covered – and if a health condition isn’t listed, you can assume it isn’t covered.

Why so many employers² offer Guardian critical illness insurance as part of their benefits package

Optional benefits like critical illness coverage help support employee financial well-being, but not all employees are the same. So, Guardian works with companies to tailor critical illness plans to their workers’ needs. Highlights and optional features may include:

• More conditions covered
  Guardian critical illness insurance now covers a greater number of diseases and conditions and is the first to offer coverage for preventive measures taken as a result of having the BRCA1 or BRCA2 genetic mutation.

• Family planning benefits
  Provides support for employees during infertility treatments, or if there are pregnancy or delivery complications.

• Mental well-being benefits
  A mental health assessment is available, as well as diagnostic testing for conditions such as severe depression, postpartum, or PTSD.

• Easy sign up
  Coverage is “guaranteed issue,” which means no health or family history questions and no medical exams are required, making it easier to get.** Coverage is also available for spouses and dependent children.

Combine with other supplemental health benefits for extra financial support

Every health and medical issue is unique and can impact household finances. That’s why your employer may offer different types of supplemental health insurance – including hospital indemnity insurance, cancer insurance, and accident insurance. These benefits can help ensure that you don’t have to choose between taking care of your health and taking care of everyday expenses.

Critical illness insurance cost

Premium costs vary depending on the specifics of the critical illness insurance policy your company offers. Plans with higher benefit levels will cost somewhat more than more basic plans. In any case, because you're purchasing benefits through your employer at group rates, the cost is typically lower than if you purchased a comparable plan on your own.

Is critical illness insurance worth getting?

Critical illnesses such as a heart attack, stroke, and cancer are serious, stressful health conditions and events that can impact our physical, emotional, mental, and financial well-being. Critical illness insurance can be an important source of protection that helps maintain your overall wellness at a crucial time. And when it’s available through work, it’s both easy to get and easy to pay for.

Take the next step

Ask your supervisor or HR department whether critical illness insurance is available as part of your employee benefits. And if you'd like more information about how to decide which employee benefits are right for you, here's a guide that can help.