Individual and Family
Critical Illness Insurance
Published on October 22, 2017
Critical illness insurance typically makes a lump sum cash payment for covered illnesses such as heart attack, stroke, and cancer.
Watch our video about critical illness insurance
Understanding critical illness insurance
Traditional health insurance generally reimburses the insured, or provider, for covered medical services, procedures, equipment, and so on. A critical illness insurance plan, however, pays you a cash amount directly, in the event you’re diagnosed with a critical illness that’s covered by the plan.
Be aware that a critical illness insurance plan generally does not conform to the Affordable Care Act (ACA or “Obamacare”), because it doesn’t provide the minimum essential coverage required by the ACA. This means that you may still be subject to an Obamacare tax penalty if you purchase a critical illness insurance plan.
In 2018, the penalty for being uninsured will be $695 per adult or 2.5% of household income in excess of tax filing thresholds, whichever is higher. This penalty is currently scheduled to disappear for coverage in 2019.
The critical illness insurance option
If major medical health insurance is not an option due to your particular health and financial needs, a critical illness insurance plan may be the best solution for you.
A 2017 eHealth study showed that the average premium for critical illness insurance was $34 and $63 for families.
However, if you want comprehensive care, you should consider enrolling in a major medical or qualifying health insurance plan, and you can do this during the annual Open Enrollment Period (OEP) or during a Special Enrollment Period (SEP) if you qualify.
To help find the right health plan for you, enter your zip code where requested on this page to see a quote.