Insurance World

In the time it takes you to read this sentence, the bills from a critical illness may have forced yet another American to file for bankruptcy. It could be as a result of their own illness or a loved one’s, but the result’s the same: Half of all bankruptcies are due to serious illness, according to a recent Harvard study, and-of those-75 percent were forced to file despite having health insurance.

One new option consumers have to help cover all expenses associated with critical illness is called, appropriately, Critical Illness Insurance. This specialized insurance provides a lump-sum payment should a subscriber suffer from certain specific critical conditions.

Right now, one of the few companies offering such insurance is Stonebridge Life Insurance Company. However, experts say that as Americans continue to survive critical ailments that were fatal only a few years ago, the need for the insurance is increasing. Stonebridge Life Insurance Company gives policyholders a one-time payment of up to $50,000 as soon as they’re diagnosed with a covered cancer, stroke, paralysis or a heart attack. The payment is intended to help people meet basic expenses, such as mortgage payments, car insurance, groceries, child care-even ballet lessons.

“Many people aren’t aware of the financial consequences of surviving a critical illness, especially if they’re unable to work for an extended period of time while they recover,” said Marlene Jupiter, author and expert on personal finance. “Now that medical progress and early detection are helping more people live through serious illnesses, people need to plan for how they’re going to financially survive the aftermath.”

For monthly premiums as low as $20, Critical Illness Insurance from Stonebridge Life is a direct-to-consumer product offering lump-sum payment options of $10,000, $20,000, $30,000 and $50,000. As an added benefit, the plan offers a return of premium option. Customers who sign up before the age of 50 and select this option may receive their paid premiums in full if they don’t make a claim before age 65.

“There is an increasing need for critical illness insurance because it helps close the gap that exists between health and disability plans, making sure that survivors are financially supported throughout their recovery process,” explained Lew Whalen, vice president of Stonebridge.

If you own a home, then likely you have homeowners insurance on your biggest and most expensive asset. True, if you own your home outright, then there is no law requiring you to have homeowners insurance. Only mortgage companies will insist on insurance if they have a lien on your home. Is it wise to go without insurance? Should you? Keep reading and we shall look at the value of having or getting rid of your homeowners insurance.

Homeowners’ insurance rates are spiking especially for homeowners in areas where hurricane damage has been high, such as Florida. Some homeowners are finding their rates have doubled or tripled in just one year while others are learning that their policy has been cancelled by the insurance company meaning they must shop for new insurance.

The temptation to drop insurance altogether is a big one, but a dangerous choice to make unless you have a bundle of money to absorb the loss.

Home insurance makes sense for the following reason:

–If there is a catastrophic loss, then your home can be completely replaced. Just make certain that your policy has been updated to reflect the current replacement cost of your home. If you live in earthquake or a flood prone area, you will need to purchase separate insurance to cover these disasters.

You can save money on your policy via:

–Comparison shopping. All insurers are different and rates can vary by as much a 10 to 20 percent. Shop around and don’t just go with the best rate. Companies that pay a fast claim are worth more than a slower payer any day, even if there rates are high.

You are your home’s best advocate because:

–You know your home. You are in the best position to determine loss, therefore you must be aware of what is allowed or not allowed before filing for a claim. A tree that falls on your home means that you are covered, while floods and earthquakes are only covered through the writing of a separate policy.

Yes, insurance on your home can certainly seem expensive and almost worth dropping until you need to use it. Your insurance company isn’t always your best friend, but they can be your only friend when disaster hits and able to help restore you financially if you selected the policy with the best coverage.