Justifying Critical Illness Benefit Plans
Benefit plans such as cancer insurance or critical illness insurance can sometimes be hard to justify. Critics argue that limited benefit policies are too niche, and cover only a section of what a more expansive plan would cover.
Forum members came to the defense of limited benefit plans, noting that 1 out of 2 men and 1 out of 3 women will contract cancer during his or her lifetime. Many of these cancers will be serious, and the public outside of the insurance community is well aware of the havoc that can be wreaked on a family paying for long-term illness treatments.
One agent shared, “Within two weeks of being diagnosed [my father] was no longer working. His 50k cancer policy kept him and my mother from losing the house and everything he had worked a lifetime for. That 50k was equal to his annual salary. When he died the life insurance kicked in.”
Other agents disagreed with the idea that critical illness benefit plans should be pursued, noting that more expansive, carefully-chosen health insurance policies would generally cover cancer and long-term illness.
- Pacific Life takeover of former Genworth Lynchburg life operation helps stabilize the term market
- When technology enables sleazy marketing practices
- For first time ever, more Americans covered by employment-based life insurance than by individual
- Need for coverage on display in the stories of 2017 Life Lessons Scholarship award recipients
- MDRT appoints Pittman as its 92nd President; New York Life continues to dominate U.S. membership
- LIAM updates: Podcast debunks 5 myths about life insurance; Guardian releases educational videos
- Less than half of employed Americans have workplace group life coverage
- 3 business benefits a flexible underwriter can deliver