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.1
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.
How Does Critical Illness Insurance Work?
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 circ*mstances 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.
FAQs
Feel confident in your coverage by working with Aflac, one of the leading supplemental health insurance companies in the industry.
What does supplemental insurance cover? ›
There are many different types of supplemental health insurance, including vision, dental, hospital, accident, disability, long-term care, and Medicare supplemental plans. There are also supplemental health insurance plans for specific conditions, such as cancer, stroke, or kidney failure.
What will Aflac pay me for? ›
Aflac can help pay for ambulance trips, physical therapy, CT Scans, MRIs, confinement, blood transfusions, and medical appliances.
What does Aflac not cover? ›
We will not pay benefits for confinement to an observation unit, or for emergency room treatment or outpatient treatment.
Is it worth getting supplemental insurance? ›
Who buys supplemental insurance coverage and why? You may be a right fit for additional insurance coverage if you: Have a family history of certain types of diseases, such as cancer, heart disease, stroke, etc. Want additional financial protection in the event of unexpected accidents or injuries.
Will Aflac cover pre-existing conditions? ›
Disability caused by a Pre-existing Condition or reinjuries to a Pre-existing Condition will not be covered unless it begins more than 12 months after the Effective Date of coverage.
What is the average cost of a supplemental plan? ›
The average Medicare Supplement plan costs in every state
| State | Monthly Cost | Rank from least expensive (1) to most expensive (51) |
|---|
| California | $162.93 | 45 |
| Colorado | $127.76 | 29 |
| Connecticut | $227.06 | 49 |
| Delaware | $150.99 | 42 |
29 more rowsOct 4, 2023
Supplemental health insurance plans are health care plans used to cover anything above and beyond basic medical coverage. These plans provide extra medical coverage and can also be used to contribute to other costs not covered by your primary insurance plan such as copayments, coinsurance, and deductibles.
What is the best alternative to Aflac? ›
Best Paid & Free Alternatives to Aflac Incorporated
- Lumity Benefits Solution.
- Insperity.
- Deloitte Consulting.
- ADP Comprehensive Services.
- ADP Workforce Now Comprehensive Services.
- Lever Talent.
- Mercer.
- OutSail.
MAJOR DIAGNOSTIC AND IMAGING EXAMS BENEFIT: Aflac will pay $200 when a Covered Person requires one of the following exams for Injuries sustained in a covered accident and a charge is incurred: computerized tomography (CT scan), computerized axial tomography (CAT), magnetic resonance imaging (MRI), or ...
Aflac expresses benefit amount in scheduled monthly amounts based on the employee's gross salary and the monthly benefit selected. Note: Aflac is not a provider of Long-Term Disability Insurance. To file a claim, use the link under Contact Information below.
How much does Aflac pay for a wellness visit? ›
Each calendar year (Jan-Dec), you and your covered dependents have access to a $50 payout for having any of these tests—you just need to submit a claim.
What expenses does Aflac cover? ›
Your Aflac benefits check helps you pay for the many out-of-pocket expenses you incur when you are sick or hurt-like the cost of transportation to and from medical facilities, parking, and additional child-care expenses.
Will Aflac pay for past medical bills? ›
If you own an Aflac policy, your cash benefits can be used to help pay your deductible and any leftover medical bills, the mortgage or rent, utilities or other expenses you may have.
How to use supplemental insurance? ›
You can use the money however you see fit, such as for medical care, experimental treatments, household expenses, and childcare. However, it's important to remember that a critical illness insurance plan will only cover diseases included in your policy.
What is Aflac considered? ›
Aflac is voluntary insurance, or an optional layer of financial protection. And with healthcare costs on the rise, more Americans than ever are seeking an extra financial safety net for unexpected medical expenses.
What is considered supplemental life insurance? ›
Supplemental life insurance is an extra policy designed to fill gaps in your primary life insurance coverage. It's often offered by employers to enhance their basic group life insurance. Supplemental coverage is typically employee-paid, meaning you cover the premium costs.
Can I deduct Aflac premiums on my taxes? ›
The IRS doesn't allow you to deduct premiums you pay to maintain accident insurance coverage. The payout may be taxable if you have accident insurance through your employer and the employer pays for your coverage.
What is supplemental group insurance? ›
Key takeaways
Supplemental life insurance is extra coverage you can buy at work or through an organization. It can cost less than individual insurance, and you may not have to answer health questions. You could lose your coverage if you leave your job.
