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Critical Illness: A Plan Worth Having When You Own a Small Business

Critical Illness: A Plan Worth Having When You Own a Small Business

Posted Jun 22, 2016 by Jenifer Dorsey


There are 28 million small businesses in the United States, a number that has increased 49 percent since 1982.1 About 66 percent of those businesses will survive their first two years.2 Approximately 33 percent will fail for financial reasons.3  

A lack of cash cushion is among the top 10 reasons small businesses fail.4 When a company’s finances are stressed and the company is already out of cash or borrowing potential, points out Jay Goltz in “You’re the Boss,” The New York Times small business blog, recovery can be difficult.5

Having a comprehensive health insurance benefits package is one thing that can help small business owners protect their finances. In addition to an Obamacare plan, as required by law for most individuals, supplemental coverage can also help with medical bills and other out-of-pocket expenses when unexpected healthcare is needed. 

Critical illness insurance is one such coverage option. 

Find small business critical insurance plans

No personal information required unless you apply.



Critical illness plans help pay the bills when the unexpected occurs

Perhaps you already have an Obamacare plan purchased through the private market or a state-based or federally facilitated exchange. That plan may offer affordable health insurance coverage that meets your typical healthcare needs in a given year. But what about the medical bills you don’t anticipate? Do you have the means to pay for unexpected healthcare and lost wages due to a critical illness such as a heart attack, stroke or cancer? 

Consider how you will pay for the following: 
  • Lost wages
  • Prescription drugs
  • Healthcare costs not covered by your Obamacare plan
  • Experimental treatment
  • Travel to and from medical providers
  • Household expenses including your mortgage
  • Your child’s college tuition

Critical illness plans, which are designed to complement your major medical plan, provide a lump sum benefit payment upon diagnoses of a covered critical illness. This payment helps with your financial obligations, so you can focus on getting well, and may be used however you choose.

How much is critical illness coverage?

The critical illness plans available through healthedeals.com:

  • Can be purchased online through healthedeals.com or through a licensed insurance producer by anyone 18 to 64 years old who is a permanent, legal resident of the United States
  • Are available to your lawful spouse (or partner, as defined by each state) and your children through age 24
  • Offers benefits options from $20,000 to $50,000 for you and your spouse, as well as a benefit of $10,000 for your child(ren
  • Include a standalone critical illness plan or a bundled plan option with five benefits: critical illness, accident medical expense insurance, term life insurance, accident death and dismemberment insurance, and accident disability insurance
  • May be renewed through age 75



The underwriting process is fairly simple and straightforward. You will answer a few health questions, provide your height and weight, and consent to a Medical Investigations Bureau report. Use of tobacco may increase your policy premium. Otherwise, your application will be either accepted or rejected; there are no exclusionary riders placed on critical illness policies.

To learn more about critical illness coverage and how it can be a smart addition to your benefits as a small business owner, call the number at the top of your screen. You can expect friendly, helpful service without pressure to buy.


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1 U.S. Small Business Administration. “Small Business Trends.”  Accessed June 13, 2016. https://www.sba.gov/managing-business/running-business/energy-efficiency/sustainable-business-practices/small-business-trends

2 Jorden, Ryan. “What Are the Real Small Business Survival Rates?” LinkedIn. Sept. 15, 2014. https://www.linkedin.com/pulse/20140915223641-170128193-what-are-the-real-small-business-survival-rates

3 Ibid.

4 Goltz, Jay. “Top 10 Reasons Small Businesses Fail.” NY Times. Jan. 5, 2011. http://boss.blogs.nytimes.com/2011/01/05/top-10-reasons-small-businesses-fail/?_r=0

5 Ibid.

This document is for general informational purposes only. While we have attempted to provide current and accurate information, this information is provided "as is" and we makes no representations or warranties regarding its accuracy or completeness. The information provided should not be construed as legal or tax advice or as a recommendation of any kind. External users should seek professional advice from their own attorneys and tax and benefit plan advisers with respect to their individual circumstances and needs.


About The IHC Group 

Independence Holding Company (NYSE: IHC) is a holding company that is principally engaged in underwriting, administering and/or distributing group and individual disability, specialty and supplemental health, pet, and life insurance through its subsidiaries since 1980. The IHC Group (including through its 92% ownership of American Independence Corp. (NASDAQ: AMIC)) owns three insurance companies (Standard Security Life Insurance Company of New York, Madison National Life Insurance Company, Inc. and Independence American Insurance Company), a majority of Ebix Health Administration Exchange, Inc., a fully insured third party administrator, and IHC Specialty Benefits, Inc., which is a technology-driven insurance sales and marketing company that creates value for insurance producers, carriers and consumers (both individuals and small businesses) through a suite of proprietary tools and products (including ACA plans and small group medical stop-loss). All products are placed with highly rated carriers.

IHC Specialty Benefits, Inc. 
IHC Specialty Benefits, Inc., doing business as Health eDeals Insurance Solutions is a full-service marketing and distribution company that focuses on small employer, individual and consumer products. Health eDeals markets products via general agents online, telebrokerage, advisor centers, private label and directly to consumers. For more information about Health eDeals visit http://www.HealtheDeals.com