Do I need extra protection like Critical Illness Insurance if I am on Medicare?
Answered by 12 licensed agents
Critical illness, heart attack, stroke and cancer plans are optional indemnity plans that can be purchased separately. The plans pay you directly upon a certain diagnosis and are designed to cover non medical and out of pocket costs such as travel, lodging, missed time from work, experimental, treatments, etc. In short, you receive a cash payout that can be used at your discretion regardless of the type of medical coverage because there is no coordination of benefits with insurance companies.
It really depends on which way you go Medicare Advantage or Medicare Supplemental. On the Medicare Advantage plans, one of the main reasons that people hit their MOOP (max out of pocket), is because they are dealing with a Critical Illness. If you have a Medicare Supplemental, depending on the plan, you may see very little out of pocket costs for critical illnesses, except for your prescriptions. But now with the Inflation Reduction Act in full effect, if your prescription is approved by Medicare and on formulary, then the most you will pay in a year for your prescriptions will be $2000. So going back to the original question, I would recommend a Critical Illness policy to go with your Medicare Advantage plan if you go the Advantage route. If I was going into Medicare right now, I would go with a Medicare Supplemental plan. This way I will limit my exposure to any large medical bills, and that's a good feeling when people are on a fixed income!
Extra protection is always good to have. I would look at your max out of pocket for your health insurance plan and get coverage for the amount of the health insurance plans max out of pocket.
In my opinion, critical illness should only be considered if you are from a family history of maladies with parents and/or siblings. Medicare has put a dollar value on over 60,000 procedures for which they pay for. It would be somewhat rare for you to require that coverage as a separate rider.
Critical Illness policies are like a Supplemental policy. You don’t have to have them, but they sure payoff nice if you find yourself with any of the ailments it covers. And when you consider 1 of 2 men, and 1 of 3 women will find themselves with some form of cancer, your odds of cashing in on it and having help you and your family are pretty good. Heart ailments and Renal failure are covered as well, and those odds again are pretty solid to be stricken from.
Now IF YOU HAVE TAKEN A MEDICARE ADVANTAGE PLAN, this “Supplement” is almost a necessity! So don’t think to turn this type policy away so quickly!
It is highly recommended for people on Medicare to get a critical illness policy as well. With a Medicare Advantage plan, there are always out of pocket expenses and some Advantage plans have very high maximum out of pocket limits of more than $8000. That creates a financial hardship on seniors. Even with Medicare Supplements there might be excess charges above Medicare-approved charges that will have to be paid out of pocket (depending on the plan). Speaking with a licensed agent can help you determine if getting a critical illness plan is the right step.
Medicare provides comprehensive coverage for critical illness, but critical illness insurance can offer additional financial support by providing a lump sum payment to cover unexpected expenses beyond basic medical care.
This depends on your financial situation. Medicare may cover some of the treatments for critical illness. But it will not cover the cost of travel, lodging, food or your caregiver or spouse missing work.
Medicare covers many healthcare costs, but it doesn't cover everything, especially for serious illnesses. Critical illness insurance provides extra financial protection by giving you a lump-sum payout if diagnosed with specific illnesses like cancer, heart attacks, or strokes. It can help cover expenses Medicare doesn't fully handle, giving you peace of mind.
