Everybody knows someone who has had cancer, a heart attack or a stroke. These are all referred to as critical illnesses. They are no longer fatal – which simply means more people than ever are surving them.
But survival comes with a steep financial cost. Chances are you have not heard of a new financial product that addresses the financial devastation that can arise when you have a critical (non-fatal) illness.
It’s called critical illness insurance and today several leading insurance companies offer it. More will be introducing policies in the year ahead. Roughly 600,000 policies have been sold to date.
When you read the following statistics, you might realize this is a real risk you face and need to prepare for.
Some 1.4 million Americans were diagnosed with cancer cases (2008). American women have a 63% chance of living at least five years after a cancer diagnosis (for men it’s 66%).
Every 40 seconds someone in the US has a stroke. 600,000 people will experience their first stroke (this year). 10% of stroke victims recover almost completely; 25% recover with minor impairments; 15 percent die shortly after the stroke.
Every 34 seconds, an American will suffer a heart attack. 785,000 will have a new coronary attack (this year). Where defibrillation is provided within 5 to 7 minutes, the survival rate from sudden cardiac arrest is as high as 30-45%.
1.5 million Americans will declare bankruptcy this year. 60% are due to medical bills (up 50% over 6 years). Some 78% had health insurance but were impacted by deductibles, co-payments and uncovered expenses + living expenses.
The average age of a person having a first heart attack is 64.5 for men and 70.3 for women. For ages 45 – 64 the number of heart attacks is: Men: 265,000 Women: 95,000. For ages 65-74, it’s: Men: 180,000 Women: 95,000
Some 448,000 coronary artery bypass procedures were performed on 253,000 patients.
African Americans have almost twice the risk of first-ever stroke compared with whites.
The median survival time (in years) following a first stroke is: at ages 60-69: 6.8 years for men and 7.4 years for women. At ages 70-79: 5.4 for men and 6.4 for women.
There were 1.4 million cancer cases in the U.S. (2008). Men: 745,180 Women: 692,000.
The most common cancers – men: Prostate (25%), lunch & bronchus (15%), colon (10%), urinary (7%) The most common cancers – women: Breast (26%), lunch & bronchus (14%), colon (10%), uterine (6%).
Critical illness insurance is a form of protection that provides the policyholder with a tax-free, lump-sum cash payment upon the diagnosis of a critical illness. Coverage is available in amounts typically from $5,000 to as much as $500,000.
Costs are based on the age of the applicant, sex, current health and use of tobacco products. A number of insurers offer “simplified” issue policies (no health exam) for amounts up to $50,000.
For more information, visit the Consumer Information Center of the American Association for Critical Illness Insurance, the non-profit industry trade group.
About the Author
The American Association for Critical Illness Insurance is the national trade organization. Access free information http://www.criticalillnessinsuranceinfo.org/. See costs for critical illness insurance at ages 40 to 60.
http://www.criticalillnessinsuranceinfo.org/learning-center/critical-illness-insurance-cost-calculator.php/ click link to access. Jesse Slome is Director of the Association.