While 749,654 bankruptcies were declared in 2019 the number skyrocketed to 1.5 million in 2010 just after the last recession.*
Following the 2007-2008 recession, bankruptcy rates skyrocketed. Consumer bankruptcies rose from 775,344 in 2007 to 1.5 million in 2010 and that’s very likely to happen again.
Jesse Slome, director of the American Association of Critical Illness Insurance
Bankruptcy risk and the importance of planning
Some 749,654 bankruptcies were filed in 2019 a nominal increase from prior year according to the American Association for Critical Illness Insurance (AACII). That is likely to change dramatically AACII’s director predicts.
According to the American Bankruptcy Institute, cumulative bankruptcies for the nation were:
- 749,654 (2019)
- 747,490 (2018)
- 759,100 (2017)
- 761,820 (2016)
- 808,954 (2015)
“Over the past five years, nearly four million Americans have faced the devastating stress and consequences of bankruptcy,” states Jesse Slome, director of the organization. “Because of the current health and economic crisis things are going to get worse, a disaster for these individuals, their families and the nation as a whole.”
Many of these bankruptcies are the direct result of health and medical conditions, Slome acknowledged. “One study by Harvard showed that 62.1 percent of individual bankruptcies are the direct result of medical matters. While other studies have shown lower percentages, the numbers are still scary,” Slome adds. “Most of these people had health insurance in place when the health condition first started.”
“Due to the 2007-2008 recession, bankruptcy rates skyrocketed,” Slome explained. “Consumer bankruptcies rose from 775,344 in 2007 to 1.5 million in 2010 and that’s very likely to happen again.”
Importance of critical illness insurance as part of every financial plan
The critical illness insurance expert urged consumers and insurance professionals to both be cognizant of the issue and to focus on the benefits of low-levels of protection. “Far more people would benefit if they had $10,000 or $15,000 of immediate cash. Maybe that’s all they need to pay their rent or mortgage while they undergo treatment and recover from an illness. Because of that, I stress an amount of coverage equal to between 6 and 18 months of rent or mortgage is a good starting point,” Slome states.
The Association offers an online Critical Illness Cost Calculator where individuals can obtain an instant estimates. “See what $10,000 of coverage can cost,” Slome advises.
Compare Critical Illness Insurance Tips
The Association has posted valuable tips to help consumers compare critical illness insurance policies and provisions. “We believe that an educated consumer is always desirable. As a result, we try to address key information in a plain English manner,” Slome explains.
Best Ages To Think About Planning
Probably the best time is between ages 40 and 50. So, if you fall into that bracket, you should definitely look into the cost of critical illness insurance protection. “First of all, you can certainly start at younger ages. Because these are the ages when one starts to face significant health risks, I try to focus on that age group. Likewise it’s the ages when you are still healthy enough to qualify for coverage,” Slome suggests.
To learn more about critical illness insurance costs, visit the American Association for Critical Illness Insurance. Because that’s where you can access the critical illness insurance cost calculator . Above all, take some time today to learn more and gain insight into the affordability of coverage.
