What comes to mind when you think about a “critical illness”? You might immediately think of “dread diseases,” including “the big three”—cancer, heart attacks and strokes.
Critical illness insurance pays you a lump sum if you’re diagnosed with serious illnesses covered by your policy, often including the big three. But this type of supplemental health insurance can offer protection against much more than just the dread diseases.
If your employer offers critical illness insurance and you’re on the fence about enrolling, take a closer look at what’s included in coverage, how much it costs, and why it might be worth it—even if you’re healthy.
Beyond the “big three”
While many policies cover the big three, as well as organ failure, severe burns and coma, other plans may provide coverage for:1
- Autoimmune conditions
- Cardiac and pulmonary conditions
- Childhood conditions
- Complications of pregnancy
- Complications of birth (for the infant)
- Infectious diseases
- Infertility treatments
- Mental health conditions
- Neurological diagnoses
FAQs: What you might be wondering
- Who should consider enrolling? Anyone can experience a critical illness, but coverage may be especially valuable for those with a family history of serious illness, limited savings or high-deductible health plans. Those planning to grow their family should also see if the plan pays benefits for infertility treatments, complications of pregnancy and childbirth and/or childhood conditions.
- How is it different from major medical or disability insurance? Critical illness insurance is not major medical insurance, which provides comprehensive coverage for a wide range of health care services. Critical illness insurance is supplemental coverage that gives you a lump sum upon a covered diagnosis to use however you need. Disability insurance replaces income if you’re unable to work.
- What happens if I never use it? Like most insurance, if you don’t experience a covered illness, you won’t receive a payout. But many people find peace of mind in knowing they’re financially prepared if the unexpected happens.
Cost comparison: It might be more affordable than you think
One of the biggest surprises for many people is how affordable critical illness insurance can be. Depending on your age, coverage level, carrier and employer contributions, premiums might range from $10 to $30 per month. To put it in perspective, that’s:
- Less than a few cups of coffee a week.
- Roughly the cost of a streaming subscription.
- About the same as one takeout meal.
Compared to the potential payout—often $10,000 or more—the monthly cost may be seen as a valuable financial safety net.
Other considerations
Before enrolling, here are a few additional things to keep in mind:
- Enrollment timing: Many employers only offer this benefit during annual enrollment, so don’t miss your window.
- Employer vs. private plans: Group coverage through work may offer lower rates, but private plans may be more customized to your needs.
- Your financial situation: If you’re building an emergency fund or have high medical deductibles, this coverage can help protect you from out-of-pocket medical costs until you reach your deductible.
Critical illness insurance isn’t just for those who expect to get sick—it’s for anyone who wants to be prepared. Whether you’re young and healthy or already managing a chronic condition, it’s worth considering how this coverage fits into your overall financial planning and wellness strategy to give you peace of mind.
