By Craig Nordyke, Vice President and Chief Actuary, DearbornNational®

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

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

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

Critical illness insurance can cover these deductibles andassociated co-pays as well as pay for expenses not generallycovered by medical insurance. This is especially importantconsidering that medical expenses are a leading factor drivingconsumer bankruptcies.[2]

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