Although high-deductible health plans have its benefits, it can be a conflict at times as well especially in case of a serious disease. Because of this possibility, the industry has tried to create a solution by devising a guarantee for life-threatening sickness. To put it simply, this is an extra coat of protection for those who are likely to face massive expenses which are not covered by their current plan.

In case this kind of health problems occur, this initiative will provide you with a check which you may use accordingly--whether it's for paying your hospital bills or working on your mortgage payment while you are taking a break from work. The extent of coverage varies from a few thousand dollars up to $100,000 depending on your policy. Part of the appeal it has on individuals is the affordability, especially when you obtain it through an employer. It can go as low as $25 monthly, which is quite a bargain compared to a typical insurance regulation.

Currently, around 44% of employers are now offering this kind of coverage, as concluded by a consulting firm. This percentage is also expected to increase to 70% by next year, because more businesses will be making this plans available to their staff. These policies can also be purchased on the individual market, although consumers opting for this will not benefit from the discount that comes from a 'group rate' unlike employees. It is also possible that you will pay more for a similar guarantee, or required to undergo medical underwriting.

Despite this plan's low price asset, experts have their doubts on whether they are really a good investment for people. Among their concerns is that they only reimburse for a narrow scale of diseases. Some only cater to cancers, while others for heart attacks. If your diagnosis does not fit in the provided categories, you will not be able to avail it.

Plus, the more ailments included in your plan, the higher you will have to compensate. For example, if someone with a cancer-only plan pays $75 per month for $25,000 of coverage, he will have to add more if she decides to expand the program to include coronary diseases. Senior citizens are advised to be careful with these policy’s age reduction schedules as well, which means their payout will shrink as they grow older.

Fortunately, there are alternatives to this. First is the disability insurance, which provides income for someone who cannot work for a certain period of time due to medical reasons. Individuals may also opt for a health or flexible savings accounts instead, since both have tax benefits when utilized for valid expenses. At the same time, you can also create a separate account for your stashed extra cash for non medical expenditures arising from a sudden sickness or unemployment.