Florida Life Insurance – The Critical Illness Policy

With the high cost of Florida health insurance these days, many people are looking for a solution to lower their premium outlay, but don’t want to risk financial exposure if a catastrophic claim hits.  What are the solutions to lower costs while keeping well protected?  This article will explain one piece of the puzzle, a critical illness policy.

Critical illness policies are Florida life insurance policies that deliver living benefits.  For a reasonably small monthly premium, you could have a plan that is designed to payout tax-free cash benefits to the insured triggered by a catastrophic illness.  These plans ordinarily don’t have a death benefit associated with them (some do), like a term or whole life insurance policy, but the payout occurs while still alive and recovering from an illness.  It is Florida life insurance, and generally speaking, built on a level term chassis, guaranteed for 10, 20, 30 years or for a lifetime.  We call this type of product an accelerated benefit.

For the sake of this description, let’s say the face amount you’ve purchased is $100,000.  The common triggers and payout levels are the following:

    • Cancer (Life Threatening) 100% of total benefit
    • Heart Attack 100%
    • Stroke 100%
    • Renal Failure 100%
    • Major Organ Transplant 100%
    • Terminal Illness 100%
    • Total Disability (accident or illness) 100%
    • Major Heart Surgery 25%
    • Angioplasty 10%

So, as you can see, these are the common illnesses which will trigger a payout from your insurance company to you.  Some plans are slightly different from each other.  But, these are definitely found in most policies.  Some policies even payout 3 times in a lifetime for separate events.  So, God forbid you have a heart attack, cancer and need an organ transplant during your lifetime, your Florida life insurance, critical illness policy would have paid you $300K, or $100K for each illness.

Get Paid While Recovering With A Critical Illness Policy

The whole goal of these policies is to make sure you have money during your difficult time.  For one, you won’t be working while you are recovering, so this payout helps pay for bills and other expenses.  You can spend the money on anything you want actually.  It doesn’t have to be spent in any particular manner.

Now you know about critical illness insurance policies.  How do they work with Florida health insurance?  Well, what we can do is lower your health insurance premium by raising your medical deductible high enough to more than cover the premium for the critical illness policy.  For example, let’s say you have a $1K deductible health plan and raise it to $5K.  You also take out a $100K critical illness Florida life insurance policy.  Not only will you have plenty of money to cover the higher deductible, but you will have funds to spend during and after treatment.  You can also couple this with an accident plan which will be discussed during another topic.  If you do it right, you’ll be paying less premium as you are currently paying  for your $1K deductible health plan, and be far more protected.

For more information about critical illness policies, please contact me at 352-200-2066.  I’ll get you a quote and help you configure your health policy to make the change worthwhile.

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