Critical Illness vs. Cancer Policies: What's Best for You?

A recent study by the American Cancer Society shows women diagnosed with breast cancer have a better chance for survival than they have had in decades -- although African American women have benefited less.

That got me thinking about how my family and I would manage if we ever had to face a diagnosis of cancer -- or a heart attack or stroke for that matter. While the declining mortality rate for breast cancer is great news, the increased screenings and improved treatments that made it possible are expensive.

If my husband or I were ever to become ill, I wouldn't want to have to worry about having to tap into our retirement savings or our children's college fund to handle expenses my regular health insurance doesn't cover.

Supplemental Care

There are two types of policies that can plug the gap: those that cover a range of critical illnesses, including cancer, and those only covers a cancer diagnosis. I decided to check them both out to see which is better. My conclusion: a critical illness policy is a more flexible and easier to understand product than a cancer-only policy, but both are worth considering.

Both cancer and critical illness policies are meant to supplement your comprehensive health care policy and are usually sold through an arrangement with your employer. They are intended to cover medical costs above and beyond what your major medical policy will cover, such as experimental treatments or the policy deductibles and co-pays.