What Is The Best Critical Illness Insurance Plan In 2023?

An acute illness can lead to many changes like income loss, lifestyle changes, or a disability, which come with additional financial burdens. That’s why it simply makes sense to pay for an insurance plan in these situations.

More specifically, you should be considering a critical illness insurance plan. People need added insurance when they have life-altering conditions and do the best they possibly can to make their lives stress-free, at least when it comes to finances.

However, finding a good insurance plan isn’t always easy, especially with critical illness insurance, as few people know about these policies.

Critical Illness Insurance Plans Explained

Critical illness plans or dreaded disease policies pay a lump sum to those who have them after they’ve been diagnosed with an illness covered by their policy. That means you get your money quickly! Make sure you know what does disability insurance cover.

If the disease you’ve been diagnosed with isn’t on the list under the policy, then you won’t get any coverage. That’s why there are a lot of different critical illness policies out there. The amounts can go from around $5K and over $200K.

The premiums depend on several factors, including the policyholder’s age and the amount of benefits of insurance. These policies don’t cover pre-existing conditions, and insurance companies use medical underwriting to determine whether applicants can get the policy.

These plans aren’t ACA-regulated and can’t serve as essential coverage and usually work great with life insurance. They have become popular in the last couple of years with employers and individuals.

Illnesses Covered With This Insurance

In most cases, these plans cover medical conditions like strokes, paralysis, renal failure, heart attacks, organ transplant, cancer, and a few others. Other conditions often covered include Alzheimer’s disease, Parkinson’s disease, and multiple sclerosis.

Critical illness insurance plans also cover all kinds of permanent disabilities resulting from an injury or illness. All insurance providers have different conditions for coverage, and it’s important to go through them thoroughly before choosing the best plan for your needs. Working with an agent can help you through that process.

These plans can cover up to 50 different conditions. However, some insurance providers let applicants include other illnesses in their policies, but this often comes with a charge and is something to discuss and review with your agent. These policies never cover conditions like hereditary illnesses, temporary conditions, and pre-existing illnesses.

Before getting this kind of policy, it’s important to know that it might require you to display permanent symptoms to make your claim in the event you need the benefits. Even though we will list some of the top options in the post, take the time to compare, review, and analyze your needs to find the right option.

How Are These Plans Offered on the Market?

These plans aren’t offered through state institutions. Since the ACA doesn’t regulate them, they fit in the same category as vision plans, dental plans, accident supplements, and limited benefit plans. Companies can offer these policies without employer contribution, and that’s why smaller companies often use them.

These businesses often offer voluntary benefits to their employees, like critical illness plans. After all, it’s better than nothing. But, people who get a critical illness plan from their employers shouldn’t rely on it as their primary health coverage option since it won’t give you what you need for what we consider ‘regular healthcare coverage.’

Factors That Affect the Price of Critical Illness Plans

There are a lot of different factors that can affect the price. These include:

What is the type of policy? (standalone policies, life insurance add-ons, joint or single policies)
Applicant’s age (the younger the applicant is, the cheaper the coverage will be)
Current health (if you’re suffering from some conditions)
Medical history (Injuries, illnesses, conditions, operations, etc.)
Current job position (certain occupations have a higher risk of getting injured or developing health problems)
Lifestyle (drinking, smoking, exercising, etc.)
Level of coverage the applicant needs

In most cases, a critical illness plan will be personally tailored and priced for each applicant. Still, the prices don’t always accurately represent what the policy will offer. In other words, the most expensive option isn’t always the best.

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American Fidelity Critical Illness Plan

This insurance company offers a critical illness plan benefit for recurrent diagnosis. This benefit covers 50% of the policy if the same condition is diagnosed the second time. There is also a much simpler underwriting policy that doesn’t require medical exams.

The coverage amounts for their insurance plans range from $10K up to $30K. Their customers can also get $50 each year for medical screenings to help avoid illnesses. If you get an employer policy from them, you can take it with you when changing jobs.

One of the best things about American Fidelity is that they have a great online presence, and their clients can easily pay bills online, make claims, and everything else. However, the company doesn’t give coverage to people with some pre-existing conditions.

Benefits

No medical exams required
$50 yearly benefit
Unique recurrent diagnosis benefit
Online service

Downsides

Certain plans are limited to company insurance only
No coverage for pre-existing conditions

Assurity Life Insurance Critical Illness Plan

This company has no waiting period for applications, procedures, and coverage. Some plans don’t require medical exams as well. Their coverage includes many different conditions, including:

Coma
Paralysis
Alzheimer’s
Organ transplants
Kidney failure
Cancer
Strokes
Heart attacks
Bypass surgeries

People who live in certain areas can also get coverage for some additional conditions, including severe burns, benign tumors, blindness, Parkinson’s, ALS, etc. They offer clients the option to file claims or make payments online.

Clients get cash for their policy amount instantly when filing a claim that they can use to cover their bills and other living expenses during recovery.

Benefits

No waiting
Some options don’t require a medical exam
The amount of coverage can go up to $75K

Downsides

Agents will provide quotes
People from New York can’t apply

AIG Critical Illness Plan

This company has extensive lifetime coverage with amazing benefits and payments that can reach up to $500K. However, to get coverage over $100K, you must go through a medical exam. AIG has one of the longest histories of providing life insurance policies, critical illness insurance plans, and other plans.

AIG critical illness insurance plans give coverage for a wide range of conditions, including severe burns, kidney failure, strokes, heart attacks, different types of cancer, and so on. Applicants can opt to purchase added coverage for dismemberment and accidental death or get various extensions on their benefits.

Medical workers can also get an HIV rider for their plan. Individuals can also get coverage for their children and spouse.

Benefits

Flexible coverage time (10–30 years, lifetime)
Coverage up to $500K
Yearly $50 payments for exams

Downsides

To get coverage, over $100K, exams are required

Liberty Mutual Critical Illness Plan

Where Liberty Mutual stands out is how easy it is to apply online and get a quote for a plan. Through their online portal, you can answer some essential questions to learn in a matter of minutes whether or not you can get your desired coverage.

If you’re eligible, you can instantly pay premiums to set your coverage and sign all the paperwork for the policy. Their critical insurance policies cover the following conditions by default:

Stokes
Organ transplants
Heart attacks
Bypass surgeries
Cancer

However, some people have the option to cover other illnesses depending on their current medical condition. The insurance coverage amount can go up to $50K. It’s possible to buy coverage for individuals and whole families. In case of diagnosis, clients get payment instantly, and they can use it how they see fit.

Benefits

Online application
Coverage up to $50K
Coverage can go as low as $12 per month

Downsides

Their coverage is unavailable in many states
No coverage for pre-existing illnesses
Potential waiting period

Colonial Life Critical Illness Plan

The Colonial Life critical illness plan is a great option for companies that want to provide coverage to their employees. They offer guaranteed employee coverage and portable plans, so there is no need to think about employees who leave the company.

Colonial Life offers group plans that offer limited underwriting and guaranteed issue options. Their plans cover renal failure, strokes, and heart attacks, but it’s possible to add other conditions into plans.

One of the best benefits of their plans is that employers can extend coverage for dependents, offer portable policies, and let employees take their plans whenever they get new jobs. All employees can manage and file claims online without relying on anyone else.

Benefits

Flexible coverage benefits
Online claim management
Coverage options for companies and dependents
Guaranteed issue options for employer plans

Downsides

Conditions can be different depending on the location of applications
Basic default coverage options

Mutual of Omaha Critical Illness Plan

This company gives flexible conditions when offering insurance. Applicants can get a variety of add-ons to create robust coverage for their needs. Mutual of Omaha critical illness insurance can be renewed and created into a lifetime policy.

They also offer limited underwriting, and individuals can add dependents to the policy regardless of their number. Of course, this comes with a flat fee. The policy also has a premiums return that can be paid after death and benefit heirs.

It’s also possible to customize the policy with various riders, but they are different for all applicants depending on their age, place of residence, and so on. It’s also one of the most flexible critical illness insurance options that can be tailored to anyone’s needs.

Benefits

Additional riders for customized policies
Customizable illness coverage options
Coverage from 10 years and up to a lifetime
Limited underwriting

Downsides

For some conditions, users get 25% payments from their policy

Aflac Critical Illness Plan

Aflac found its way on our list because it gives applicants guaranteed insurance that doesn’t come with health questions or exams. The coverage amount goes up to $20K which isn’t the best, but it’s still solid and can be great for certain individuals.

The Continental American Insurance Company underwrites Aflac’s critical illness insurance plans. Holders are paid a lump sum if they get diagnosed with conditions like skin cancer, renal failure, heart attack, etc. People who need organ or marrow transplants also get cash payout from their policies.

The basic policy has a coverage amount of up to $10K while the enhanced version goes up to $20K. It’s also important to mention that people who want to cover their children as dependents get 50% coverage under the policy without any additional charges.

Benefits

No health questions or exams
Guaranteed issue insurance
Claims are paid in 3 to 4 days
All of the major illnesses are covered by default
Free coverage for children

Downsides

The coverage amounts are lower for guaranteed issue policies compared to the competition
For some conditions, policyholders are paid less

Conclusion

We hope this guide has helped you understand what critical illness insurance plans are and things you need to pay attention to when choosing one.

Take your time to analyze all the plans that we have mentioned today, but before you do that, outline your needs in detail.

In the end, compare prices and benefits to make the best decision for you and your family. Contact us at Policy Solver so we can help you make the best choice based on your needs.

If you need advice on choosing the best critical illness insurance, don’t hesitate to contact us or schedule a free consultation! We’re always ready to help!

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