A critical illness can be categorized as a type of health illness or health event that typically alters how you live. These health events may require surgeries, medications and therapies that can be costly. That's where critical illness insurance comes in—to help with the resulting medical expenses. These insurance plans are designed to help you financially following a life-threatening illness.1
Because these types of health events often incur higher-than-average medical costs, it’s not uncommon for there to be expenses that are not covered by primary health insurance. A critical illness insurance plan often pay policyholders a lump-sum cash payment to help after their primary health insurance has been used.2
Many policyholders find themselves navigating what the tax implications are for different kinds of insurance plans. It can be helpful to figure out upfront if the payout is taxable or if there are any tax-deductible benefits available. Before we explore how taxes are involved, here’s a brief overview of how our critical illness insurance works. Then, we’ll dive deeper into whether critical illness insurance is taxable or a tax-deductible benefit.
Every critical illness insurance plan works differently, but Aflac offers lump-sum cash benefits for covered events. Affordable monthly premiums are available to help you keep your policy active so you can be better prepared for the medical expenses that can accompany a critical illness.
Our critical illness insurance offers benefits for specific life-changing events, like heart attacks and strokes. Often, these circumstances require a recovery period that may be expensive. You may also be able to access additional benefits surrounding second-time occurrences, hospital confinement and continuing care.
The cash benefits offered through Aflac Critical Illness Insurance can grant you the flexibility to use funds however you need them most. This means you can use the critical illness insurance cash benefits to help with surgery costs, medications or everyday expenses like rent or groceries. Our plans are accessible through your employer and individually. In both cases, we help make the application process easier for you.
Chat with your employer today or apply for a plan individually.
It depends on your unique situation and where you live. In some cases, the payout may be tax-deductible if the premiums for the plan are paid on a pre-tax basis.3
We recommend consulting with a tax professional for the most accurate information regarding tax-deductible benefits for critical illness insurance.
Critical Illness Insurance might be worth considering if you have a family history of heart attacks or strokes. It can also be helpful if you want to be better prepared for an unforeseen life-changing event.
It’s also not uncommon for policyholders to have more than one kind of supplemental insurance plan. We offer various supplemental insurance plans designed to help you cope financially and emotionally following a cancer diagnosis or plans that can assist with covered hospital stays too.
Critical illness insurance is here for you when you need financial assistance if you face a major health event. Get a quote today to see how our affordable critical illness insurance plans can help you today.
Explore your critical illness insurance options.
1-2 Investopedia - Critical Illness Insurance/ What Is It? Who Needs It. Updated March 13, 2022. Accessed Mar 22, 2022. https://www.investopedia.com/articles/personal-finance/010416/critical-illness-insurance-who-needs-it.asp.
3 GoodRx - What Is Critical Illness Insurance, and Do You Need It. Updated Feb 9, 2022. Accessed Mar 22, 2022. https://www.goodrx.com/insurance/health-insurance/critical-illness-insurance.
This is a brief product overview only. Coverage may not be available in all states including but not limited to ID, NJ, NM, NY, or VA. Benefits/premium rates may vary based on plan selected. Optional riders may be available at an additional cost. Policies and riders have limitations and exclusions that may affect benefits payable. For costs and complete details of the coverage, please contact your local Aflac agent. Lump Sum Critical Illness: In Oklahoma, Policies B71100OK & B7110HOK. Hospital: In Idaho, Policies B40100ID & B4010HID. In Oklahoma, Policies B40100OK & B4010HOK. In Virginia, Policies A49100VAR–A49400VAR & A4910HVAR. Cancer/Specified-Disease insurance: In Idaho, Policies B70100ID, B70200ID, B70300ID, B7010EPID, B7020EPID.
Aflac insurance coverage is underwritten by Aflac. In New York, coverage underwritten by Aflac New York.
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