• In the U.S. men have a 1-in-2 lifetime risk of developing cancer; women have a 1-in-3 risk (American Cancer Society)
  

• 1 in 4 men and women have some form of cardiovascular disease (American Heart Association)
  

• In 2007, about 700,000 Americans will have a first heart attack, and about 500,000 will have a recurrent attack (American Stroke Association and American Heart Association study)
  

• Half of all U.S. bankruptcy filers say that out-of-pocket medical expenses led to their financial hardship—and most of those people had health insurance. (Harvard Medical School)
  

• Uncovered medical bills averaged $13,460 for those with private insurance at the start of their illness. People with cancer had average medical debts of $35,878 (Health Affairs Journal)

All critical illness policies are designed to pay a policyholder at the first diagnosis for the most common big illnesses: cancer, heart attack, stroke and/or Alzheimer’s disease. There isn’t any treatment plan or continued claim forms that you or the doctor has to submit. It’s just that simple. The policy is easy to use and should appeal to all independent business owners.

When a qualifying event is diagnosed, the insurance company pays the policyholder a lump sum. That first diagnosis by the client’s Doctor will trigger the payment to you. You never have to worry about the insurer determining that they aren’t truly disabled, or that they don’t need long-term care. The payment you receive from the insurance company can be used for anything you need as you recover.

To help you decide how much coverage you might need, ask yourself how much you would need for three months of living expenses (and/or business operating expenses). Most people will need somewhere between $25,000 and $150,000 to pay their bills for the first 90 days after they have an illness. The minimum benefit for a Critical Illness policy is $10,000; the maximum coverage can be $500,000 (occasionally $1 million).

Just four carriers dominate the US market. While underwriting isn’t as exhaustive as it is to apply for an LTC or DI plan, Critical Illness policies are always underwritten. Underwriters ask applicants if they’ve had any immediate family members who’ve had a heart attack, stroke, cancer, etc. Most companies require applicants to be under the age of 60 when they apply. Most insurers will keep the policy in force for your client’s lifetime, but their policy benefits may be cut in half after age 65 or 70; one insurance company maintains the full benefits in a policy until the policyholders’ death.

If you do not use the benefits of the policy, a return of their premiums is paid after death. With one company this benefit is already included as a benefit in their policies. For some companies, this benefit is optional.