Connect with us

Uncategorized

Best Critical Illness Insurance

Published

on

Best Critical Illness Insurance

Want to jump straight to health insurance quotes? Compare here and find the cheapest premium with the best coverage.

Quick Look Best Critical Illness Insurance Carriers:

  • Mutual of Omaha
  • Liberty Mutual
  • AIG
  • Aflac

Even if you have health insurance, recovering from a critical illness can take a serious financial toll on you and your family. Depending on the severity of the condition, you may not be able to return to work for weeks or months, during which time your family may struggle to pay day-to-day expenses. Critical illness insurance is a unique type of protection that can potentially save you from being forced to file for bankruptcy if you’re diagnosed with a critical illness or condition. 

The Best Critical Illness Insurance

When it comes to facing a critical illness, having a comprehensive health insurance plan can sometimes only be half of the battle. If you’re severely injured or you contract a major illness, you may need to undergo multiple surgeries and periods of bed rest until you’re fully healed. A recovery period like this means everything from taking time off from work to scheduling assistance with day-to-day tasks like doing laundry and cooking meals, which can put even a well-prepared family under financial stress.

Critical illness insurance can help you pay for things that your health insurance doesn’t cover while you’re recovering. From alternative medicine to groceries and mortgage payments, critical illness insurance coverage can help you rest with the peace of mind that comes with knowing you’re protected in the event of a life-threatening illness.  

If being unable to work would mean serious financial trouble for your family, you should consider a critical illness insurance policy. Begin your search with a few of the recommended providers below. 

Mutual of Omaha

get started securely through Mutual of Omaha – Health Insurance’s website

Advertisement

Mutual of Omaha can be a viable choice for your critical illness insurance if you’re looking for a policy with flexibility. Mutual of Omaha allows you to choose a benefit amount between $10,000 and $100,000, and you can also choose a term as short as 10 years or as long as a lifetime. You’ll receive your benefit as a lump sum, and you can use it in any way you choose. Mutual of Omaha’s coverage is also notable because it includes coverage for conditions not covered with other insurance providers like blindness and deafness.

Coverage from Mutual of Omaha is available for applicants between the ages of 18 and 64. While you must work with an agent before you can get a quote, this feature can be a benefit if you prefer a more personalized insurance shopping experience. 

Liberty Mutual

Liberty Mutual’s critical illness insurance policies can be a smart choice if you’re looking for the most affordable rates on the market. Coverage is available from just $12 a month, and you can sign up for a policy entirely online. Critical illness insurance policies are available with benefits up to $50,000 — and many applicants will be covered the same day they apply for a policy.

While Liberty Mutual’s low monthly pricing is affordable, it is only available in a limited number of states. These critical illness insurance policies also require that you complete a medical questionnaire and make it through a waiting period to determine any pre-existing conditions before your coverage begins.  

AIG

Best For

Life insurance as an investment tool

Advertisement

Best For

Life insurance as an investment tool

1 Minute Review

AIG Life Insurance is known as one of the biggest insurers in the entire world. Its services are offered to millions of customers throughout more than 80 countries. The agency also provides a wide range of insurance and investment products for businesses. According to Fitch and S&P, an A+ rating best suits AIG Life while an A2 rating from Moody’s alon and an A rating from AM Best perfectly supports just how much of a positive reputation the company radiates overall. AIG Life proves that there is more than term life insurance and the ability to cover everything is possible.

Best For

  • Life insurance as an investment tool
  • Parents, individuals and businesses
  • Anyone in need of several insurance options

Pros

  • Unique variants of traditional life insurance policies
  • Variety of term lengths for term life policies
  • Business services offered to help protect your bottom line
  • Multipolicy discounts available

Cons

  • Low score for customer satisfaction
  • Unavailable in some states (New York and Maine); some states only available online (Pennsylvania)
Advertisement

If you’re searching for a policy with the highest possible benefit, you might want to consider exploring insurance options with AIG. AIG offers critical illness insurance policies with benefits of up to $500,000, which is significantly higher than competitors. You can also purchase a policy that’s valid for your entire lifetime through AIG if you choose.

AIG also allows you to customize your policy through optional riders. For example, you can purchase enhanced critical illness coverage, which extends AIG’s standard critical illness insurance to include additional coverage of more than 50 conditions. AIG also offers coverage for children under your policy up to 75%. 

Aflac

Aflac offers guaranteed critical illness insurance policies. This means that you won’t need to complete a health questionnaire before you’re approved for a policy. Every dependent child in your household is also covered under your Aflac policy at 50% of costs incurred. Aflac also claims that most of its payouts are issued just a few days after they’ve been submitted.

Aflac’s critical illness insurance coverage extends to the most common conditions covered on these policies as well as some unique inclusions (like coverage for bone marrow transplants). Though Aflac’s coverage limits are lower than some competitors — you can buy a policy with a benefit of up to $20,000 — its benefits for dependent children can make Aflac a strong choice for families. 

How Does Critical Illness Insurance Work?

Critical illness insurance is an additional protection you can purchase that will help you cover expenses beyond your medical bills following a diagnosis of a critical illness. Some things that critical illness health insurance can pay for may include:

  • Coverage for treatments not traditionally covered by health insurance
  • Day-to-day living expenses while you are unable to work because of your condition (rent, mortgage payments, groceries)
  • Transportation to and from appointments at treatment centers
  • The cost of modifying your home or vehicle to meet safety standards based on your condition — for example, outfitting a van with a wheelchair ramp)

These policy benefits are typically paid out in cash, meaning that there are a range of options on how you can use your payout. If you’re terminally ill or you need a place to recuperate following a major diagnosis, you may even be able to use your insurance payout to take a vacation with loved ones. 

Critical illness insurance is not the same thing as health insurance — while you can depend on your health insurance to pay for your treatments no matter your condition, critical illness insurance policies usually only offer coverage in limited circumstances. For example, your insurance policy might specify that you can only file a claim following a heart attack, stroke or cancer diagnosis. This limitation on coverage is part of the reason why these policies are exceptionally affordable.

The Advantages of Critical Illness Insurance

Even if you have health insurance, you may want to consider a critical illness insurance policy. Some of the most important benefits you’ll have access to when you purchase this type of insurance policy include the following.

Advertisement

Assistance paying for health insurance-related costs: Even if you have a fantastic health insurance policy, your insurance won’t cover some expenses following a critical illness diagnosis. If you have a critical illness insurance policy, you’ll have assistance paying your deductible, copayments and coinsurance charges. When used together with your health insurance, these two coverages can make finances following an accident significantly more manageable.

Affordable coverage: Critical illness insurance is very affordable. Depending on your coverages and the company you work with, you might pay as little as $12 a month for your critical illness insurance coverage.

Paid out in a lump sum: When your claim is approved following a critical illness diagnosis, you’ll receive your payment as a lump sum of cash. This means that you can use the benefit in any way that you see fit. 

Drawbacks of Critical Illness Insurance

Some of the drawbacks of investing in critical illness insurance include the following.

Limited coverages: Critical illness insurance is affordable because it offers coverage only after very specific diagnoses. You may not ever end up using the benefits that you’ve paid for. Be sure to review your list of covered conditions before you purchase a policy to be sure that you know when your insurance does and does not apply.  

Not everyone will qualify for coverage: Insurance companies place limitations on who can and cannot enroll in a critical illness insurance policy. For example, if you’re over the age of 64, you’ll have a very tough time finding an insurer to provide you with coverage because major illnesses are much more common past this age. If you have a pre-existing condition, it will also likely be excluded from coverage. 

Frequently Asked Questions

Is it worth it to get critical illness insurance?

Critical illness insurance can be worth the expense in many cases. If you’re diagnosed with a critical illness that qualifies you to file an insurance claim, the benefit that you’ll receive will usually eclipse the amount of money that you’ve spent in premiums. This is because critical illness insurance is a relatively affordable protection.

If you were forced to take time off of work to recover from a major diagnosis, think about what type of financial stress this would cause for your family. If your income is crucial to your family’s basic needs, it’s worth considering buying a policy. 

How much does critical illness insurance pay out?

The amount of money that you’ll receive from your critical illness insurance varies depending on what you choose when you enroll in a policy. The higher the benefit you choose, the more you’ll pay per month for your coverage. 

Advertisement

Bitcoin.com Exchange

Bitcoin․com Exchange Market Insights Report For May 2022

Published

on

Bitcoin․com Exchange Market Insights Report For May 2022

This is the May 2022 monthly market insights report by Bitcoin.com Exchange. In this and subsequent reports, expect to find a summary of crypto market performance, a macro recap, market structure analysis, and more.

Crypto Market Performance

May got off to a rough start as the Federal Reserve confirmed a hawkish bias on the back of lingering inflation. Markets reacted by going risk-off.

The collapse of LUNA and UST added fuel to the fire, with the result that crypto markets saw historically large drawdowns.

BTC reached a low of $25.4k USD, which is 60% off its all-time high of $65k. ETH saw a comparable drawdown.

Other large-cap coins fared even worse, with AVAX and SOL being down over 75% and 80% respectively from their all-time highs.

During the first week of the month, gaming (play-to-earn) saw the worst performance across crypto sectors, followed by top assets (large caps) with losses of 9.6%, and Web3, which was down 8.9%.

Source: messario.io

Macro Recap: Quantitative Tightening (QT) Is Here to Stay

As expected by the market, on May 3rd the Federal Reserve announced that it had voted for a rate hike of 50 basis points to the funds rate. This announcement was on the back of “robust” job gains and a decrease in unemployment, which has led to increases in inflation. There was also the reduction of the balance sheet, starting from $47B per month to up to $95B per month after the first three months. According to the Federal Reserve’s later statements, System Open Market Account (SOMA) will reduce its holdings of U.S. agency debt and U.S. agency mortgage-backed securities (MBS).

The narrative was focused on uncertainties regarding the macro environment, as Russia’s invasion of Ukraine intensifies and supply-chain issues in China contribute to lackluster growth globally.

Advertisement

CPI data provided no relief, as it marked 8.3% for the month of April, beating expectations by 20 basis points. April’s numbers were down only slightly from the 40-year high of 8.5% reached in March.

Market Structure: Decrease in Flows and Long-Term Holders Continuing Capitulation

As macro conditions seem to worsen, we take a look at on-chain metrics to better understand price action with the aim of providing a clear view on what could come next. There are two areas we will focus on. These are 1) decrease of profitability by long-term holders (and capitulation) and, 2) stablecoin supply/demand.

The graph below is the Long-Term Holder Spent Price vs Cost Basis, which depicts capitulation in the market by Long Term Holders (LTHs). The blue line represents the Long-Term Realized Price, which is the average buying price of all coins that LTHs hold. This is declining, as you can see from the graph, meaning LTHs are selling off their coins. The pink line represents the average purchase price of the coins being spent by LTHs on that day. As you can see, it’s trending higher, meaning that LTHs are selling at break-even on average.

Source: glassnode.io

Stablecoins are a key component of the market, as they facilitate entries of new players as well as standardizing a unit of exchange for crypto. By looking at the supply of stablecoins we can know whether or not more participants are entering the market. As seen on the graph below, stablecoin supply grew tremendously during the last bull market due to the increase in demand for crypto and thanks to new players entering the market. The supply of major stablecoins went from $5.33 billion to $158.2 billion in less than three years. Note, however, that aggregate stablecoin supply has been flat so far in 2022.

Source: glassnode.io

This was driven mostly by an increase in redemptions of USDC (into fiat), totalling $4.77B since the start of March despite an increase of $2.5B in USDT over the same period. In the below chart, we can see the 30-day change in aggregate Stablecoin Supply vs the Contribution by USDC. USDC has seen a supply contraction by a rate of -$2.9bn per month, which can be identified in the bottom right corner of the graph by the dashed red circle.

Source: glassnode.io

Being one of the most widely used stablecoins, USDC supply contractions indicate a move of money from stablecoins as a whole back to fiat. More significantly, this indicates a risk-off sentiment as well as weakness in the crypto market overall.

LUNA and Do Kwon, The Man Who Flew Too Close to the Sun

In this section we would like to go over the rise and fall of UST and the Terra ecosystem, and the resulting domino effect that impacted the markets. UST, one of the largest stablecoins ever created, was an undercollateralized algo-stablecoin in the Terra ecosystem. It was created and sponsored by the Luna Foundation Guard (LFG), led by outspoken founder Do Kwon.

As an algorithmic stablecoin, UST implemented a two-token system where the UST and LUNA supply should remain similar and where both tokens were redeemable between themselves. If the price of UST exceeded $1, traders were incentivized to burn LUNA in exchange for one dollar worth of UST, which increased its supply and theoretically drove the price back to $1.

Meanwhile, Anchor, a DeFi staking protocol within the Terra ecosystem, was offering “saving account” deals for users to stake their UST. This was paying a whopping 20% APY. Anchor generated this yield by borrowing and lending UST to other users for collateral. A large sum of this collateral was LUNA.

So what went wrong? Due to its early success, the Terra ecosystem grew enormously to become one of the largest projects by market capitalization, at $40B. LFG, led by Do Kwon, began to think of ways to improve the backing of UST. Thus, they decided to back part of their reserves with large cap cryptocurrencies such as BTC and AVAX among others, making UST a multi-collateralized algo-stablecoin. Having done that, the stability of UST peg became inherently correlated with the value of the collateral in its reserves. On May 8th, 2022, 4pool Curve, one of the largest stablecoin pools, saw an increase in UST supply of 60%, as shown in the chart below.

Advertisement
Source: dune.com

Shortly thereafter, an $85 million UST-to-USDC swap brought the pool back to being only slightly imbalanced. Big players subsequently came in and, by selling ETH in the market, bought the value of UST back nearly to its $1 peg, as shown in the chart below.

Source: Bitcoin.com Markets

You can see that the balance of the Curve pool was temporarily restored to previous levels and the peg was temporarily saved. However, on May 9th, we see that a similar situation occurred when another massive sell of UST was executed on the Curve pool, pushing the imbalance to above 80% of UST in the pool. The price of UST dropped to about $0.60 around the same time. The crypto market entered into a panic and the collateral held by LFG became less valuable in a downward spiral. This impacted the value of LUNA, as it’s supposed to be continuously sold to keep the peg – and this was the beginning of the end. The peg never went above $0.8 from that point on, and the value of LUNA nose dived by over 99%, currently sitting at $0.00026 USD.

A lot of questions are still unanswered from the Terra/Luna episode. Specifically, who was responsible for the massive selling of UST on Curve? Was this an orchestrated “attack” to depeg UST? Why didn’t LFG come up with a contingency plan to stop the devaluation of LUNA and UST? Why was the process of restabilization of the token done manually by the foundation and Do Kwon? Are BTC collateralized tokens safe in highly correlated scenarios?

We are yet to see the aftermath of this black chapter in crypto history, as the Terra ecosystem and UST are mostly marketed towards retail money. You may well see increased scrutiny from regulators towards stablecoins and crypto overall. One thing you must remember from this is that crypto is still an immature market and being the decentralized, crowdsourced environment that it is, comes with high risk. Thus, you should always keep in mind that every investment has its risks and doing your own research continues to be paramount.


Bitcoin.com Exchange

Bitcoin.com Exchange gives you the tools you need to trade like a pro and earn yield on your crypto. Get 40+ spot pairs, perpetual and futures pairs with leverage up to 100x, yield strategies for AMM+, repo market, and more.

Advertisement

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Continue Reading

Bitcoin

Luna Foundation Guard Discloses Usage Of Bitcoin Reserves

Published

on

Luna Foundation Guard Discloses Usage Of Bitcoin Reserves

The Luna Foundation Guard, the entity in charge of safeguarding the peg of UST, the stablecoin of the Terra ecosystem, has revealed how it used the available Bitcoin reserve before the recent debacle involving the Terra ecosystem. The organization sold part of the bitcoins owned directly, while another part was traded on different dates to try and stabilize the value of UST. The reserve was comprised of more than 80,000 BTC.

Luna Foundation Guard Clarifies Reserve Movements

The Luna Foundation Guard (LFG), the organization tasked with safeguarding the dollar peg of UST, the algorithmic stablecoin of the Terra ecosystem, has broken its silence to explain the use of the assets it had under its custody. The institution had amassed more than 80K BTC, which was to be used in case of market imbalances affecting the value of terrausd (UST).

According to reports on social media, the foundation spent almost all of its BTC reserves in a failed attempt to save UST. This was made in three different operations. In the first one, LFG sold 26,281,671 USDT & 23,555,590 USDC for an aggregate of 50,200,071 UST, in what was the first defensive transaction against the depeg incident.

Also, the LFG stated it:

Advertisement

Transferred 52,189 BTC to trade with a counterparty, net of an excess of 5,313 BTC that they have returned, for an aggregate of 1,515,689,462 $UST.

However, the company did not identify the counterparty involved in this transaction.

Last Measures

Even with the intervention of the LFG, the peg was not restored. LFG declares that Terraform Labs exchanged the last of the BTC reserve on May 10, when UST’s market price had touched $0.75. This transaction involved the sale of 33,206 BTC for an aggregate of 1,164,018,521 UST.

The Luna reserve is now comprised of only 313 BTC, meaning that most of the BTC owned by the organization were deployed in the defense effort. Other cryptocurrencies in the reserve, including 39,914 BNB and 1,973,554 AVAX were not used and still are in the possession of the organization. However, there is no clear answer as to how these will be used in the future.

Advertisement

The statements from LFG help to clarify how the Terra depeg incident happened, and how these funds were used. An analysis of the transactions conducted earlier by Elliptic, a blockchain analytics and compliance company, found that the majority of the funds were sent to two exchanges: Binance and Gemini. However, the company declared that it was “not possible to trace the assets further or identify whether they were sold to support the UST price.”

What do you think about the report on the use of Terra’s BTC Reserve? Tell us in the comments section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.

Advertisement

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Continue Reading

Crypto

Portugal To Tax Cryptocurrency Income According To Minister Of Finance

Published

on

Portugal To Tax Cryptocurrency Income According To Minister Of Finance

Portugal, one of the countries considered a crypto tax haven due to its absence of crypto-related taxation, is preparing to change this policy. Fernando Medina, minister of finance of Portugal, stated that the country is working on a framework to allow the taxation of cryptocurrency income gains following the principles of “justice” and “efficiency,” and declared that there cannot be gaps for any income gains to be obtained without taxation.

Portugal to Tighten Cryptocurrency Taxation Policy

Portugal, one of the countries that has been touted as a crypto haven due to the absence of taxation in this regard, is working on the establishment of laws that will allow it to tax these digital assets. The statements on the subject were made by the minister of finance of the country, Fernando Medina, during a state budget discussion.

Medina explained:

Several countries are building their models regarding this matter and we are going to build ours. I do not want to commit myself to a date at this moment, but we will adapt our legislation and our taxation.

Advertisement

The government had already given signs of its future direction regarding cryptocurrency taxation. The Ministry of Finance asked the Portuguese Tax Authority to study how crypto assets were taxed in other regions in 2021 “in order to propose an adequate tax framework for these new instruments, taking into account the necessary balance between the fair distribution of income and wealth and the attraction of foreign investment.”

Models Still Not Decided

While the models by which cryptocurrency gains will be taxed are still unclear, Medina stated that these would be set up following the principles of “justice” and “efficiency,” aiming for a tax system that would not scare cryptocurrency investments out of the country. Medina declared this system should make taxation “adequate,” but not of an “exceptional character that ends up reducing revenue to zero, which is contrary, in fact, to the objective for which it exists.”

However, he was firm in the belief that cryptocurrency should be taxed eventually, stating that there could not be “gaps that cause there to be capital gains in relation to the transaction of assets that do not have a tax.”

Recently, cryptocurrencies are starting to be used as a means of payment in real estate transactions in Portugal. On May 8, the reported first transaction of this kind happened in the country, when an apartment in Braga was sold for 3 BTC.

Advertisement

What do you think about the statements on crypto taxation made by Portugal’s minister of finance? Tell us in the comments section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.

Advertisement

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Continue Reading

Trending