By Craig Nordyke, Vice President and Chief Actuary, Dearborn National^®

In the midst of one of the worst economies our country has experienced, critical illness insurance sales jumped 40%[1]. Strong growth continues today, driven by a combination of factors.

1. Many people may realize they are less financially secure than they once were—or than they thought they would be. Jobs can become increasingly in peril and financial safety nets could be substantially reduced.
2. As employers address health care costs, many consider opting for high-deductible plans, which leave underlying coverage gaps and higher potential costs to address these.
3. In addition, as the population ages, consumers may recognize the increased possibility of being stricken by a critical illness. This is true in all segments of the population, from factory floors to executive suites.
4. Finally, broader carrier involvement, product enhancements and stronger marketing efforts have bolstered product attractiveness and boosted awareness of critical illness insurance and the protection it offers.

High health plan deductibles bring critical illness insurance to the forefront
Critical illness insurance can play a role in managing certain costs as high-deductible health plans become more common. Heightened popularity of these high-deductible plans present potential problems for insureds faced with extraordinary medical costs for everything from heart attacks and strokes to cancer and more. It’s common to see health plans with $5,000 deductibles.

Critical illness insurance can cover these deductibles and associated co-pays as well as pay for expenses not generally covered by medical insurance. This is especially important considering that medical expenses are a leading factor driving consumer bankruptcies.[2]