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Perhaps the least known product in the health insurance market, might be the most important of all.  Critical illness insurance is an indemnity product, that pays cash directly to you in the event you have one of the specified illnesses. 

Over sixty percent of  all bankruptcies in American are related to medical bills.  The bills at least contribute to the bankruptcy.  To be more specific, if you are self employed or an independent contractor of somekind.  If you do not work you do not get paid.  If you have a heart attack, stroke or a life threatening cancer, sadly you probably will not be going to work for a while.  Your major medical insurance will cover all or most of your medical bills.  What about your other bills?

We pay our other  bills with the income we earn from our jobs.  We usually cannot call the mortgage company and say, I had a critical illness and have been out of work for two months, can I skip by mortgage payment for a while.

Critical Illness, pays a specified amount of money, usually a miminum of $5,000 and most companies have a maximum of around $50,000.  You pick the amount you think you need at the time of purchase.

If unfortunatly, you are diagnosed with the illness, cash is paid to you for whatever you need it for, monthly bills, cash flow, whatever the case may be.

Critical Illness insurance was not created by the insurance industry.  It was created by a heart surgeon, named Dr. Bernard in South Africa.  Dr. Bernard said in 1983, “If you die at age 30 than life insurance is more important, but if you get a critical illness at age 45 or 50, when you are at the height of your earning ability, and you have an operation and survive to live another 20 years, than critical illness insurance was more important. Where workability decreases and the ability to provide for your financial needs diminishes, I think the critical illness policy is much better.”

Critical illness policies can now be purchased individually or some life insurance policies have it either added as a benefit or some actually come with it.  The life policies would cost a little more, but have a nice “living benefit” to come with it.

In my opinion, at minimum, everyone should have at least $10,000 in critical illness if you own any assets.

Thanks for reading.

Eric Wilson is president of I Sell Health, Inc.  A Chicago based company.  He can be reached toll free at 888-448-5370 or online at