Breast cancer survivor, Amanda Dean (not her real name) had little money to cover her medical expenses when she was diagnosed in 2008.

“I only had about $500,000 saved and I ended up spending about $3 million,” she recalled.

Luckily for her, the applications she made for grants to the Culture, Health, Arts, Sport and Education fund (CHASE Fund) and a financial institution were both successful.

But not everyone is as fortunate, or has enough money saved.

Investing in a critical illness plan can help cover costly medical expenses.

They are a living benefit insurance policy that provides financial aid in the event of being diagnosed with severe illness, such as heart attacks, strokes and cancers.

If you are already diagnosed with a critical illness, you can’t apply for for a plan, while the older the you are the higher the premium, which can be paid annually or monthly.

There are various policies to choose from, and some may require details about your medical history.

And while the funds may take some time to be paid over to the insured after being diagnosed, there is no restriction on how the money is spent.

Waiting periods are an internationally accepted norm, according to Leroy Dallas, senior insurance advisor at Guardian Life Limited.

“If there is a claim before the waiting period ends, it would qualify you for the face value,” he said. “The company would refund all premiums paid to date which means you would not lose any monies from the transaction.”

Pumping monthly premiums into critical illness plans may not be much of a priority.

In fact, Keisha Lazarus said persons prefer to cross that bridge when they get to it rather than to put things in place before something happens. The sales administration supervisor at Scotia Insurance cited that as one of reason persons don’t buy a critical illness policy.

But, who knows what can happen.

“Unforeseen expenses brought about by illness may overwhelm the family budget, so if you are diagnosed with a critical illness, you can be protected,” she said.

Persons need to consider the cost of health care today and what preparations need to be put in place to cover unforeseen expenses associated with a critical illness.

Furthermore, the incidence of many critical illnesses, such as breast cancer, is high.

Breast cancer accounts for 29.4 per cent of all cancers in Jamaica with an incidence rate of 43.1 per 100,000 women, that is, for every 100,000 women in Jamaica, 43 new cases are diagnosed annually. For every 21 women in Jamaica, one will develop breast cancer in her lifetime, according to the Jamaica Cancer Society.

Payout from claims could help with your bills while you recuperate from illness, Lazarus added.

“I couldn’t believe I spent so much money in such a short period,” Dean said.

And if not having enough savings to cover the cost of breast cancer treatment, she had to go to a private clinic because an essential machine used in the treatment at the public hospital’s was broken — that route was pricey.

It was quite difficult both emotionally and financially for Dean. She said at one point she juggled two jobs.

“Last January will make the first time since I’ve been diagnosed that I had money left to save,” she said.

It’s better to be prepared and gain peace of mind, rather than worry about the financial burden of recovery, Lazarus said.

Premiums are paid until the policy expires, which could be the policy anniversary after the insured’s 75th birthday or the 20th anniversary of the policy.

If it matures then and no claims are made, there is a no claim resulting in a lump sum payment of all premiums to date.

This amount can then form a supplemental pension plan, which compliments your savings for retirement, as you would not have lost any of the monies paid to the plan over the years, Dallas said.