Best Critical Illness Insurance

Guardian Life offers critical illness policies for individuals and employers and covers over 30 critical illnesses. These are a lump-sum policies and do not have any waiting periods before benefits are paid. Note that the availability of critical illness insurance products for individuals can vary by geographic location.

We like that Guardian offers different policy options, and unlike some other policies we reviewed, Guardian offers a first occurrence and recurrence payout. This means that if you experience a certain critical illness type, you can still receive future payouts at a later date with the policy. Once you submit a claim, Guardian Life promises to turn around the claim within seven days if you provide the correct documentation. 

AM Best rates Guardian Life an A++ (Superior) for its financial strength.

AIG Direct (AIG) offers Critical Illness Insurance for a lump sum value up to $500,000. This was one of the highest-value policies of all the companies reviewed. While the additional coverage likely comes with a higher premium price tag, the option could be a good idea if you wish to protect your wealth or loved ones in the event of a critical illness.  

The company has two options for coverage without a medical exam. For other policies, you must submit to a medical exam that also includes a blood profile and urinalysis. If you select one of two special riders—the benefits extension rider or the accidental death and dismemberment rider—AIG may limit coverage to no more than $250,000. The company also offers a medical personnel HIV rider, which pays a benefit to a person in the medical field should they accidentally contract HIV as a result of their work duties. 

In addition to the higher-value policy option, we also liked that AIG covers a wide variety of medical conditions. Examples include coma, invasive cancer, stroke, heart attack, renal failure, severe burns, paralysis, vision loss, major organ transplant, or loss of independent living. 

AIG doesn’t offer policy premium quotes online. It has a section on its website where you fill out information about your desired coverage amount along with your height, weight, and contact information, and an AIG representative will call you regarding a quote. 

AM Best has given AIG an A (Excellent) financial strength rating.

Aflac offers critical illness insurance that pays a lump-sum benefit with several different rider options. You can also choose to purchase a guaranteed-issue lump sum policy that does not require a medical questionnaire to complete. 

The policy covers critical illnesses that include coma, end-stage renal failure, heart attack, hemorrhagic stroke, ischemic stroke, and paralysis. Notably, cancer is not a part of this list. Aflac offers the option to add an optional benefit of a lump-sum cancer rider. Another customizable benefit rider is the return of premium benefit rider which allows you to recoup your premiums paid if you keep the policy for 20 years or more and do not make a claim. 

Aflac’s critical illness policy also includes a subsequent critical illness benefit. This pays you if you are diagnosed with another or the same critical illness more than 180 days after the first diagnosis. 

Policy coverages range from $10,000 to $100,000 in increments of $5,000. You’ll likely have to complete a medical questionnaire if you wish to obtain the higher-premium critical illness insurance policies. 

Unfortunately, quotes are not available online for Aflac’s critical illness policies. They also are not offered in some states, including Idaho, New Jersey, New York, and Virginia. However, there is a form on the Aflac website where you can request that an agent to contact you to obtain a quote. 

AM Best has rated Aflac A+ (Superior) for its financial strength.

MetLife offers its critical illness policies to employers only. However, we liked that once you purchase the policy, the coverage is portable if you did leave your current employer. MetLife offers a lump-sum plan that includes coverage for dependents, such as your spouse or children. 

Another upside is that the policy is guaranteed acceptance. If you are actively employed, you can qualify for the coverage without taking a medical exam or answering health history questions. MetLife also doesn’t institute a waiting period. Your policy effective date and coverage date are the same. 

Examples of critical illnesses covered include heart attack, stroke, kidney failure, Alzheimer’s disease, major organ transplant, and certain cancer types. In total, the critical illness policy may cover 22 conditions. 

MetLife also advertises ease of payment. It will acknowledge your application within three days of receipt, after which you can pay either via check or electronic funds transfer.

Because the plans are company-specific, MetLife doesn’t share monthly premium costs. Also, although MetLife operates in all states, it doesn’t disclose if it offers critical illness policies in all states. AM Best rates MetLife an A+ (Superior) for financial strength.

Mutual of Omaha offers its critical illness insurance policy to individuals, families, and employees. The individual benefits stand out as especially strong. The company advertises its policy as an excellent option for individuals with high-deductible insurance policies. The lump-sum payment received from Mutual of Omaha could help cover costs until a person meets their high deductible, which can sometimes number in the $10,000 range. 

Mutual of Omaha’s critical illness policy covers conditions such as internal cancer, heart attack, stroke, Alzheimer’s disease, major organ transplant, blindness, paralysis, deafness, or kidney failure. It also pays 25% of the lump sum for coronary artery bypass surgery or coronary angioplasty surgery. Policy coverage options range from $10,000 to $100,000.

The company advertises that is uses limited underwriting to accept individuals applying for the policy. You can also add additional riders to the policy, but these are largely dependent upon where you live. It’s also worth noting that Mutual of Omaha offers individual policies for cancer or heart attack or stroke. These individual policies tend to be slightly less expensive than a comprehensive critical illness policy. However, Mutual of Omaha does not allow you to obtain quotes on its website; you must contact a Mutual of Omaha agent. 

Mutual of Omaha has an A+ (Superior) financial strength rating from AM Best.

Supplemental insurance policies are a risk to both the insurance company and the purchaser. You may purchase a policy that you never need, or your insurance company may have to pay you much more than you ever paid in premiums. Because your risk for experiencing a critical illness such as a heart attack or cancer increases as you age, many insurance companies will not offer policies that extend throughout your lifetime. UnitedHealthcare offers a policy that will extend over your lifetime, but there are some stipulations. 

For example, the company offers a maximum lifetime benefit in increments of $10,000, ranging from $10,000 to $50,000. The policy offers a full lump-sum payment for diagnoses made 90 days after the policy is effective. UnitedHealthcare covers 12 critical illness types, including heart attack, stroke, loss of hearing, major transplant, coma, or kidney failure. Once you turn 65, the maximum lifetime benefit automatically reduces by 50%. While this is a drawback, few policies are willing to extend lifetime coverage. 

Another consideration is the policy is guaranteed renewable until age 70. At that time, UnitedHealthcare may choose to continue your policy for the remainder of your life or terminate the policy. There are pre-existing condition limitations, which include no diagnosis or medications to treat a critical illness covered within the past 24 months. 

Using UnitedHealthcare’s online quote tool, we were quoted a price of $66.66 for a 45-year-old man for $40,000 worth of coverage. The monthly premium for $10,000 in coverage was $16.67 for the same age and gender. Note that your premium may change based on your age and where you live.

UnitedHealthcare stipulations may vary from state to state, and the company does not offer critical illness insurance policies in Georgia, New Jersey, New York, Virginia, or the District of Columbia. 

AM Best rates UnitedHealthcare’s underwriting company, Golden Rule Insurance Company, an A+ (Superior) for financial stability.

When it comes to ease of application, it’s hard to beat Breeze. The company offers an online critical illness insurance application that collects several data points, including gender, birth date, ZIP code, and smoking status. You’re then shown options for coverage amount, usually ranging anywhere from $5,000 to $75,000. Breeze’s website shows an estimated monthly premium along with this amount. Once you select your desired coverage amount, the online application typically takes five minutes or less before you receive a coverage decision. 

Breeze’s critical illness insurance can cover a variety of medical conditions including stroke, heart attack, organ transplant, and cancer. It only offers lump-sum policies, which pay a cash benefit should you meet the qualification criteria. (You’re usually asked to have a doctor confirm your diagnosis and may need to provide key test results.) You can make claims via an online portal to receive your benefit should a doctor diagnose you with a critical illness. 

Using Breeze’s online quote tool, we received a cost estimate of $59.40 a month for a 45-year old non-smoking man to receive $40,000 in coverage. We were offered a maximum coverage of $75,000 with a maximum monthly price of $109.47. The price you pay may change based on your location.

Breeze reduces the benefit amount by 50% at age 70.

Note that Breeze does not sell its critical illness insurance product in New York. AM Best rates its underwriting company, Assurity Life, A- (Excellent) for financial strength.