About half of critical illness insurance buyers purchased individual policies providing benefits of $20,000 or less, according to research from the American Association for Critical Illness Insurance and General Re Life Corp.
According to the 2012 National Critical Illness Insurance Buyer Study some 29 percent of male buyers and 31 percent of female buyers purchased benefit levels of $10,000 or less. Only 9 percent of men and 8 percent of women purchased more than $50,000 in protection.
“People increasingly understand they have some financial risk as a result of higher health insurance deductibles or lost income resulting from a dread disease and are selecting nominal amounts of CI coverage because they believe it is both sufficient and affordable protection,” says Jesse Slome, AACII executive director.
For example, according to the association's online critical illness insurance price calculator, a 40-year-old male non-smoker will pay about $20 monthly for $20,000 of CI protection. Females pay less, Slome notes.
Researchers analyzed data from 10 leading critical illness insurers, which accounted for more than 57,200 purchasers of individual critical illness insurance policies made between Jan. 1 and Dec. 31, 2011.
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