If you or your clients guessed 90 days, you may have a problem, one that can lead to frustration and financial hardship for your clients, and a damaged reputation or even an errors and omissions infraction for you. Critical illness insurance is the solution to this problem.
What does critical illness insurance do?
One out of four 20-year-olds will become disabled during their working years, according to the Social Security Administration. According to the Council for Disability Awareness’s 2013 Long-Term Disability Claims Review, illness is responsible for approximately 90 percent of all disabilities.
When an illness strikes, the negative impact on one’s work and income can be immediate, but disability insurance payments can take months to kick in.
Critical illness insurance protects the insured from the financial hardship that occurs when a major illness makes it impossible for a person to work and earn money. With this coverage, the insured receives an immediate lump-sum payout as soon as the diagnosis of a covered illness or medical procedure occurs.
Critical illness insurance is different from disability insurance or paycheck protection. While disability insurance provides monthly payments based on a percentage of the insured’s regular income, critical illness insurance provides one payment at the onset of a covered illness.
Combined, the two products offer more complete protection. Adding critical illness coverage fills the gap created by waiting periods, and the often-unexpected delays that can have serious consequences for the clients as well as the agents who failed to clarify matters.
- How waiting periods affect clients
- How critical illness insurance can help eliminate misunderstandings
- Why CI + DI is a win-win
- What CI product options are available.