Heart attack, stroke, cancer and other illnesses can affect not only your health but also your bank account—medical expenses reportedly lead to more than half of all bankruptcies in the United States. When faced with a severe illness and the accompanying medical costs, critical illness insurance can help.

Employers may offer critical illness insurance as a voluntary benefit to complement standard medical coverage. This insurance addresses out-of-pocket expenses like deductibles, copays, and out-of-network charges not covered by health insurance. Critical illness benefits help mitigate lost wages during extended time away from work, covering routine living expenses such as child care, transportation, and housing costs. By safeguarding against financial loss, critical illness insurance prevents the depletion of savings due to medical bills and work-related absences.