In 1990, life insurance companies began using 1980 mortality tables, and with that, pushed the amortization period for pricing a life policy to age 100. In 2001, that maximum age was amended to age 125. So what happened? Medical advances are what happened. Heart disease and cancer continue to be the leading causes of death in the U.S., but mortality from them has been steadily declining since 1980. Other diseases, such as strokes, lower respiratory diseases and pneumonia, have also shown steady, if not huge, declines in causing death. But not all causes have declined. Deaths by accidental injury, suicide, liver disease and hypertension have shown increases, as reported in a 2010 study by the Centers for Disease Control (http://www.cdc.gov/).
“So what?” you may ask. Here, in a nutshell, is “what”. Those diseases that used to kill now can be controlled or maintained, through medical and physical advances. However, being alive, though better than the alternative, may seriously impact your quality of life and your family’s standard of living. And, as recently as last year, you may not have had any health insurance to pay to keep you alive. With the advent of ObamaCare, comes the knowledge that if you do suffer a debilitating illness, it will be covered. But, many, if not most, of these new policies come with substantial deductibles that must be paid before your insurance will pay
Enter critical illness insurance, which has been described as the coverage you can’t afford to live without. For example, what if you have a stroke? In case you think you’re not susceptible, someone has one every 40 seconds on average. According to the Internet Stroke Center (http://www.strokecenter.org/) approximately 795,000 people suffer a stroke each year, of which 600,000 are first attacks. Your new Obamacare policy will cover your costs, but only after a fairly hefty deductible is paid. Do you have $6,000 or $12,000 lying around just for such an emergency? That’s one of the gaps in your coverage, that and any coinsurance you may incur. Critical illness insurance works by paying for expenses that your illness incurs, whether it be deductibles, or in the costs of recovery, such as therapy. It doesn’t pay for each bill, but provides a lump sum payment that can be used for any expense. And, even better, the money is paid to you directly, giving you control of how you wish to use your funds. Would a lump sum of $50,000 help lessen the burden, and ease your financial worries? If so, talk to a professional today.
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