5 minute read
Real Life: Why Critical Illness Insurance is Important
By Michael Naumann
Focus on Real-Life Stories to Support the Data
You don’t have to be in our business to know a critical illness can arise at any time, out of the blue.
According to the American Association for Critical Insurance, approximately 40% of men and women will receive a cancer diagnosis in their lifetime. Heart attacks and strokes occur every 40 seconds in this country. The Parkinson’s Foundation reports 1 million people are suffering from the disease in the US, and that number is expected to reach 12 million by 2030.
The good news is, most will survive, but with that comes the cost of treatment, along with predictable and unforeseen ancillary costs – which brings the bad news. Most are not prepared.
There’s a tremendous volume of data about the number of Americans with limited savings. Bankrate’s annual survey found nearly 60% of U.S. adults are not prepared for a $1,000 emergency expense. You don’t have to dig too far into the research to find the number of workers enrolled in High Deductible Health Plans, statistics on the number of workers who can’t afford the out-of-pocket medical and nonmedical expenses when an unexpected critical illness medical event occurs, and figures on the prevalence of a severe medical diagnosis paired with enrollment data on how employees waive off enrolling in Critical Illness plans.
These realizations led me to look deeper into the medical and non-medical expenses incurred specifically when cancer strikes. Perhaps not surprisingly, I found myself knee-deep in GoFundMe efforts from those seeking financial help because of a medical event.
As I reviewed these heartfelt requests for financial support, the research data, statistics, figures and numbers faded as real-life stories truly proved the importance of, and need for, Critical Illness insurance.
Consider these scenarios.*
The financial implications include more than the cost of treatment.
We are asking for donations of any amount to help this family cover the cost of meals, childcare, procedures not covered by insurance, loss of income and eventual loss of benefits and any additional support they need.
Cancer treatment isn't only challenging for the patient, it's expensive, with many associative costs not covered by insurance or even anticipated until yet another medical invoice arrives.
I've estimated that they will spend approximately $15k this year towards travel, in addition to ongoing medical bills that are regularly paid to cover treatments. Cancer treatments are not fully covered by insurance and chemo/radiation costs thousands.
Donations will be used for expenses related to treatment, including but not limited to: ongoing oncology care, medications, infusions and transfusions biopsies, social and nutrition care, home health care, and any expenses connected to the stem cell transplant and subsequent recovery. In the rare event it becomes necessary, funds may be used to supplement and assist with mortgage payments.
Inevitably, there are unexpected expenses in order to receive the best care.
Much of the additional support is not covered: short-term surgery recovery therapy, long-term tutoring, as the radiation treatments can cause cognitive repercussions that may follow her through the length of her school career. There are also travel expenses and accommodation in Grand Rapids for the 6-week radiation treatment, scans every 3 months, and many, many more years of follow-ups to come.
Unknown aspects of Cecily's diagnosis could lead to more financial needs including additional childcare services for Cecily's younger sister while the family supports her in her treatment and travels to doctor visits. There is also a need for family meals or food prep programs during times of treatment and recovery.
There are a lot of hidden costs involved in having cancer and, with this treatment and surgery, it’s not possible to work right now. The money raised here will help with travel to treatments, the reconstruction after surgery, and also day-to-day living It’s not something I ever thought I’d have to do but any help is greatly appreciated.
Not all effective treatments will be covered.
Like everyone living with cancer, I want to explore all options and try all treatments with sufficient evidence of efficacy that may help me. One targeted therapy is not funded by the NHS and, while it is available privately, it is not licensed to be used with other treatment methods that are only licensed as monotherapy This resulted in my insurance company declining this additional treatment.
The estimated cost of these innovative treatments is in the tens of thousands, and whilst they are willing to pay whatever they can, it is money Stacey and family do not have, and due to the disease's aggressive nature, time is of the essence.
There is a solution.
These personal stories are just a sampling of the thousands of online crowdfunding requests for financial support due to medical events, many of which are covered by critical insurance policies.
As carrier representatives, insurance advisors, and human resource teams, we offer life-changing cash benefits to solve these problems. But too many are unaware or don’t recognize how important these solutions are for many.
We need to build thoughtful communication, education, and engagement strategies so employees fully understand the real value of Critical Illness insurance. This is even more valuable now that many CI plans are increasing the range of illnesses covered beyond the traditional Cancer, Heart Attack/Transplant, Stroke, Coronary and Major Organ Failure to include Progressive Diseases (eg ALS, Parkinson’s, MS, Alzheimer’s, ARDS), many Childhood Conditions (eg Type 1 Diabetes, Down Syndrome, Muscular Dystrophy), Infectious Diseases, and even Occupational-related Diseases the list goes on and the need for CI is more critical than ever.
*Stories edited for clarity and to protect privacy
Michael Naumann, Worksite Practice Leader (Western US) for Reliance Matrix Insurance Company - Michael has over 23 years of diverse experience across employee benefits, enrollment solutions, affinity-based programs and third party administration. At Reliance Matrix, Michael creates sales and marketing strategies to accelerate worksite growth, drives business development, and influences product development.
