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Real-life example · Critical illness & cancer

Mark’s heart attack: how the math works

For ages under 65

Mark, 61 · coronary artery disease

Mark has a heart attack, gets a stent, and goes to cardiac rehab. His specified disease policy has a $2,500 yearly deductible, then pays 80% of covered expenses for the conditions on its list. It pays in addition to his regular health plan. His covered expenses come to $20,000.

Covered expenses$20,000
Deductible$2,500
Policy pays$14,000

What happened

Day 1Heart attack. ER and a stent.
Days 2–3In the hospital.
Weeks 2–12Cardiac rehab and follow-ups.
ClaimsCovered expenses total $20,000.

Follow the money

Paid by the policyPaid by the person (or not covered by this policy)Step in the math

Do the math

Covered expensesTotal
Hospital, stent, rehab, follow-ups
$20,000
Yearly deductibleNot covered
The policy doesn’t pay the first $2,500
−$2,500
Amount the 80% applies toThen
$20,000 − $2,500
$17,500
Policy pays 80%Policy pays
$17,500 × 80%
$14,000
Remaining 20%Not covered
$17,500 × 20%
$3,500
Policy pays$14,000

How the $20,000 in covered expenses splits

$2,500
$3,500
$14,000
$2,500 Deductible (not paid by this policy)
$3,500 The 20% (not paid by this policy)
$14,000 Paid by the specified disease policy

The takeaway

Unlike Susan’s lump sum, Mark’s policy pays a share of actual covered costs, for any disease on its list. Because it pays on top of his health plan, the $14,000 can go toward that plan’s deductible, copays, and anything else the heart attack costs him.

These are illustrative examples with made-up names. Dollar amounts come from one sample plan design and are shown only to explain how the benefits work. Your actual benefits depend on the plan and options you choose, your state, and the terms, limitations, exclusions and waiting periods in your policy.

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AR LIC #3001749169 | AZ LIC #3000715968 | CT LIC #3004383862 | FL LIC #L110099 | GA LIC #216953 | LA LIC #1045542 | MD LIC #3000702723 | MO LIC #3001760254 | MT LIC #3004369750 | NC LIC #1000466684 | OH LIC #1315974 | SC LIC #3000934918 | TN LIC #3001749153 | TX LIC #2564289 | VA LIC #149038