Insurance is an expense, until it is not. Here, I wish to address the power of adding critical illness coverage into your portfolios.
What Is Critical Illness Coverage?
Critical illness coverage is a type of insurance that provides financial protection in the event of a covered critical illness, such as cancer, heart attack, or stroke. Many people think that traditional health insurance is enough to cover all medical expenses, but this is not the case.
5 Reason Why You Need Critical Illness Coverage
- High Cost of Critical Illnesses: The cost of treating critical illnesses can be astronomical, even with health insurance. Between co-payments, deductibles, and uncovered expenses, it is common for patients to incur significant out-of-pocket costs when diagnosed with a critical illness. In addition, many people are unable to work during treatment, leading to loss of income and additional financial strain. Critical illness coverage can provide a lump sum payment to help cover these costs, giving your clients peace of mind and financial security.
- Limitations of Traditional Health Insurance: Traditional health insurance policies typically have limits on the amount of coverage they provide. If your client requires an extended stay in the hospital or an expensive medical procedure, they may quickly reach their coverage limits, leaving them responsible for the remaining expenses. Critical illness coverage, on the other hand, provides a lump sum payment that can be used to pay for any expenses, including those not covered by traditional health insurance.
- Maintaining Quality of Life: A critical illness can have a profound impact on a person’s quality of life. Not only do they have to cope with the physical and emotional toll of the illness, but they also face the financial burden of medical expenses. Critical illness coverage can provide the financial resources necessary to maintain your client’s quality of life, allowing them to focus on recovery instead of worrying about finances.
- Protecting Savings and Investments: When a critical illness strikes, the financial impact can be devastating. In addition to medical expenses, there may also be loss of income, which can quickly deplete savings and investments. Critical illness coverage can help protect your client’s financial future by providing a lump sum payment that can be used to cover expenses and maintain their standard of living.
- Peace of Mind: Perhaps the most important benefit of critical illness coverage is the peace of mind it provides. Knowing that they are protected against the financial impact of a critical illness can allow your clients to focus on their recovery and not worry about how they will pay for their medical expenses. This peace of mind is invaluable and can greatly improve their overall well-being during a difficult time.
In conclusion, critical illness coverage is an essential part of any financial portfolio. The high cost of treating critical illnesses, the limitations of traditional health insurance, and the potential loss of savings and investments can all be mitigated with critical illness coverage.
By providing a lump sum payment to cover expenses and protect your client’s financial future, critical illness coverage can give them the peace of mind they need to focus on their recovery. As a world-class financial planner, it is important to educate your clients on the benefits of critical illness coverage and help them determine the right coverage for their specific needs.
Chengkok is a licensed Financial Services Consultant since 2012. He is an Investment and Critical Illness Specialist. Wealthdojo was created in 2019 to educate and debunk “free financial advice” that was given without context.
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The views and opinions expressed in this publication are those of the author and do not reflect the official policy or position of any other agency, organisation, employer or company. Assumptions made in the analysis are not reflective of the position of any entity other than the author.