I have seen this commercial several times in the last week. With nothing but respect for the American Cancer Society, every time I see this commercial I cannot help but be reminded that with proper planning, this need is a thing of the past for most Americans
Speaking purely selfishly, unless you need a charitable contribution for tax purposes, the cost of a minimum Critical Illness insurance policy is often less than an average contribution to the ACA.
If your goal is to help find a cure for cancer, I know of no better charity than the American Cancer Society.
However, if your goal is to make certain that there is enough money for food and lodging for a healthy loved one to accompany someone with cancer to a specialty hospital, like M.D. Anderson which specializes in the treatment of cancer, a Critical Illness insurance policy is a better use of your money.
It is important to remember that, even with the Obamacare changes in health insurance, non-medical expenses, such as food and lodging, are not paid by insurance. Unless you have sufficient money in savings, insurance is your last option to pay the additional bills yourself.
Critical Illness insurance not only helps pay bills, like food and lodging, if you are diagnosed with life-threatening cancer. It also provides extra money in the event you are diagnosed with heart attack or stroke. Also, many Critical Illness policies cover other serious illnesses.
Two of my clients have been diagnosed with cancer. In both cases, the families had several thousands of dollars in savings before the diagnosis. The extra bills, that are not paid by Major Medical insurance, have eaten up all of their life savings.
One family, with a teenage daughter, is only able to maintain their standard of living through the help of friends and charities.
The other family, fortunately has no dependent child living in the house, but the money that had been saved to support both of them during retirement has had to be used to pay current bills.
In both cases, the healthy spouse has had to change jobs so she could care for her sick husband.
Critical Illness insurance provides money to help pay bills that traditional Major Medical does not.
A minimum plan should be enough to pay for medical bills that “Health Insurance” does not. There may be enough to pay for food, lodging and transportation for a healthy loved one if a trip to a specialty hospital is required.
You can increase the amount of your policy to help pay your bills while you recover from medical treatment.
I do not, personally, like “Rules of Thumb” but for those people who like them, I recommend getting a plan with a minimum $20,000 and a maximum $30,000 benefit, if you want to cover all risks.
If all you want is a plan that will provide enough money to pay what your health insurance does not pay for medical treatment and travel expenses, I recommend looking at a minimum plan of $10,000.
If you live in TX and want to learn more about Critical Illness insurance, click on the graphic below. It really is not that expensive.