Do I need extra protection like Critical Illness Insurance if I am on Medicare?
Answered by 18 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.
Med supplements, depending on the plan letter you chose covers most or all the 20% Medicare does not. Medicare advantage has co-pays (I’m on one myself). It’s always nice to have extra money coming in from those plans. The choice is up to you.
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!
Whether you need additional protection like Critical Illness Insurance while on Medicare depends on your personal financial situation, health history, and risk tolerance.
Medicare provides broad coverage for many medical services, including hospital stays, doctor visits, and some preventive care. However, it doesn't cover all costs. For example, Medicare typically doesn’t pay for non-medical expenses that may arise during a serious illness—such as lost income, transportation, home modifications, or help with daily living.
Critical Illness Insurance is designed to provide a lump-sum payment if you're diagnosed with a covered condition like cancer, heart attack, or stroke. This cash benefit can help offset out-of-pocket medical costs or other financial burdens that Medicare doesn't cover.
If you’re concerned about how a major illness might impact your finances or lifestyle beyond what Medicare handles, Critical Illness Insurance can provide added peace of mind. That said, it's important to carefully review the policy terms, your overall insurance coverage, and your financial goals before making a decision.
Consulting with a licensed insurance advisor can help you evaluate whether this type of supplemental coverage aligns with your specific needs.
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.
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!
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.
In most cases I would say no. However, there are times when those types of policies can help. It's a personal choice as to if the premium for those types of plans gives you enough benefit to make them worth it.
Not necessarily. Coverage like Critical Illness is supplementary coverage, its not required. It would add value if you thought you could benefit from the policy in case you had a critical illness and then you would benefit from this policy. Its hard to know, but I would suggest it if you can afford it and think there is a possibility that you might use it.
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.
The need for Critical illness coverage is sometimes needed for individuals that may have history of medical conditions that increase the possibility for something to occur.
Critical illness coverage provides a lump-sum payment if you're diagnosed with a serious condition like cancer, heart attack, or stroke. It helps cover extra expenses that Medicare might not, such as travel, home care, or lost income.
Each person has different needs and it is always best to speak with an agent to discuss your needs.
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.