Supplemental Policies pay 100% lump-sum benefits directly to YOU – Is it really a waste of money if your family has a history of cancer, heart attack or stroke?
WHAT ARE SUPPLEMENTAL POLICIES?
I heard about cancer, heart attack and stroke policy from one of my friends. She said it’s a win-win deal.
The insurance company will pay 100% of the lump-sum at first diagnosis- regardless if you need hospitalization or treatment. If you don’t get the disease, they will return all your premiums upon death. This is an add-on, of course, but she decided to include it in her plan.
Our family history is mostly heart-related so it makes sense to get an insurance for heart attack and stroke. But, we also decided to purchase cancer supplemental insurance because we just never know.
WHY PURCHASE CANCER OR HEART SUPPLEMENTAL POLICIES?
The truth is our medical health insurance will cover some of the direct costs. But some will not help. Unless of course, you have tons of savings and assets, right?
Our health insurance covers only 39% of the doctor bills, hospital charges and medical expenses (direct expenses) according to American Cancer Society Facts and Figures 2016.
But what about the indirect costs?
I am talking about the patient’s loss of income (most disability policies pay 60-80% only – please check your coverage you need this policy too!) or the family member’s loss of income – most time-off is not paid, but of course you can also use your sick or annual leaves, if you have it.
There are also insurance limitations – co-payments and deductibles, unexpected charges, out-of-pocket expenses and on-going living expenses!
Yeah, there’s just a lot of expenses, unfortunately.
Although if you have savings and investments – college funds and retirement funds, or if you have assets you can sell like home and property, cars and personal items then it can help meet the indirect costs of cancer, heart attack or stroke….
But do you really want to sell all your properties just because you haven’t given a second look on this type of specific disease supplemental policy?
BUT, I HAVE LIFE INSURANCE ALREADY!
I know life insurance will pay benefits upon death.
However, I know there are riders available too, like if you add Accelerated Death Benefit (ADB) rider, then the policyholder can receive early payment before death. They can receive cash advances in the event of terminal, chronic or critical illness.
BUT it is usually for those who have less than one year to live, those who require permanent confinement, medically incapacitating condition or have a long-term high-cost terminal illness. Some insurance companies pay based on how close to death the insured is.
Or you can take a loan or withdrawal against your life insurance’ built up cash values. Also depending on the type of insurance, some can even allow you to withdraw up to get a loan of up to 70% of the policy’s death benefit.
BUT it is still a loan.
THE THING IS…
CANCER is NOT a disease of bias.
It does not discriminate.
It has no respect for the rich or poor, young or old, popular or unknown, male or female, or color of one’s skin!
In 2016, the American Cancer Society estimates about 1,685,210 new cancer cases and about 595,690 will die (almost 1620 people per day!)
Cancer, is still the second most common cause of death in the US, exceeded only by heart disease, and accounts for nearly 1 of every 4 deaths.
Cancer will strike:
- 1 out of every 2 men (21% new cases in 2016 will be prostate cancer)
- 1 out of every 3 women (29% of new cases in 2016 will be breast cancer). Bad news – most women diagnosed with breast cancer have NO family history of the disease.
… and cancer is the second leading cause of death in children ages 1-14 years, exceeded only by accidents.
GOOD NEWS!
The National Cancer Institute has over 50 hospitals as specialized cancer centers and the five-year survival rate for all cancers combined is 67%! There is definitely hope although some advanced treatment centers may not be locally available and could be expensive!
IT MAKES SENSE!
There was this one time when I wasn’t sure if I did the right thing about purchasing the policy too.
I bought a different cancer supplemental plan – it was more for a treatment plan supplemental policy.
The insurance company will directly pay the hospital of the costs incurred on top of the regular medical insurance in case I get cancer.
But I was still in doubt.
At that time I was working with an 88-year-old Special Education teacher and thought she knows better. She asked me “Is cancer in your family history?” I told her not. Then she said, cancel it.
I followed her advice but made sure to get the cancer lump-sum benefits supplemental policy instead.
A WASTE OF MONEY OR FOR PEACE OF MIND?
I guess you decide.
BTW, I believed in the product so much that I decided to become an agent. Let’s talk. You may send me an email at nminsuranceagent@gmail.com or leave comments below.
P.S.
Yes… It is affordable!
My mom had cancer a few years ago and is on the road to recovery. This supplemental plans can really help especially since the cost of treatment is really expensive.
I’m happy your mom is recovering well!! Yes, it is an expensive disease. The best thing about this cancer insurance is that it pays you the benefit amount upon first diagnosis, it will definitely help with the expenses.