Bankruptcies are likely to soar predicts the director of the American Association for Critical Illness insurance. Most Americans unprepared and should take time to learn more about the risk and options states AACII director.
“Over the past five years, nearly four million Americans have faced the devastating stress and consequences of bankruptcy,” states Jesse Slome, director of the organization. “The current health and economic crisis only going to make things worse, a disaster for these individuals, their families and the nation as a whole.”
Slome shared that 2019 bankruptcies increased slightly in 2019 from 747,490 in 2018. “Following the 2007-2008 recession, bankruptcy rates skyrocketed,” Slome explained. “Consumer bankruptcies rose from 775,344 in 2007 to 1.5 million in 2010 and that’s very likely to happen again.”
Many of these bankruptcies are the direct result of health and medical conditions, Slome acknowledged. “One study by Harvard showed that 62.1 percent of individual bankruptcies are the direct result of medical matters. Other studies have shown lower percentages,” Slome adds. “Most of these people had health insurance in place when the health condition first started.”
The critical illness insurance expert urged insurance professionals to be cognizant of the issue and to focus on the benefits of low-levels of protection. The organization posted data regarding bankruptcy statistics and their implication on the Association’s website.
“Far more people would benefit if they had $10,000 or $15,000 of immediate cash to pay their rent or mortgage while they undergo treatment and recover from an illness,” Slome urged. “For many individuals, having an amount of critical illness coverage equal to between 6 and 18 months of rent or mortgage is very likely going to be sufficient.”
The Association offers an online Critical Illness Cost Calculator where individuals can obtain an instant estimates. To learn more go to www.criticalillnessinsuranceinfo.org. “See what $10,000 of coverage can cost,” Slome advises. “If you are sequestered at home, turn off the television and learn more about financial planning. It will be time well spent for you and your future.”
Published at Fri, 27 Mar 2020 07:00:00 +0000