If you are responsible enough to create an estate plan and prepare for the future, you’ll want to consider whether critical care insurance is right for you. As with any good estate or financial plan, determining what the future could hold and making the appropriate arrangements in case something happens is essential. With critical care insurance you can guard against the possibility that a sudden serious illness or injury will cost you more than you expect. Here’s what you need to know about critical care insurance and how it plays a role in your estate planning efforts.
Regardless of the type of health care coverage you have, you have probably had to pay some out-of-pocket expenses. Whether it’s co-pays, deductibles, or other costs not covered by your policy, the out-of-pocket expenses that many people have to pay goes up every year.
When an unexpected serious injury or illness occurs, the amount you might have to pay out of pocket can be significant. People suffering a heart attack or stroke, for example, can expect to pay an average of about $6,000 in out-of-pocket expenses, while the average costs for heart attack can exceed $14,000.
Critical care insurance is one way you can deal with the expenses not included under your healthcare coverage.
Critical Care Insurance Costs and Benefits
Like other forms of insurance, you will have to pay a monthly or yearly premium if you choose to acquire critical care insurance. If you ever suffer from a sudden unexpected or critical injury, the insurance carrier will provide you with a lump sum payment designed to pay for your out-of-pocket expenses.
Like other insurance products, policies differ in the amount of benefits they provide, the premium cost, as well as other important factors. You will need to carefully review these policies determine what they cover, what they don’t, and whether they are a viable option for you.
If you don’t choose to acquire critical care insurance you will have to be ready to pay for any of pocket expenses yourself. For some people, setting up a health savings account or a tax advantaged flexible spending account are viable options. These accounts require you to save enough in advance to be able to pay for out-of-pocket expenses yourself.
Unfortunately, the average American family have less than $10,000 in emergency savings that they can spend on out of pocket healthcare expenses. If you aren’t capable of saving that much, or need additional time to build your savings to the appropriate level, a critical care insurance policy could be financially advantageous.
Like all other estate planning and financial planning tools, a critical care insurance policy is something that you need to consider in light of your current circumstances and your abilities. While some people might benefit from a critical care insurance plan, others can more easily benefit from other strategies.
You should talk to your estate planning attorney so you can better understand how critical care insurance might play into your current situation and whether other options would be more beneficial for you.