Almost all of us are impacted by cancer in some way, with nearly 1 in 2 Canadians diagnosed with cancer in their lifetime [1]. Severe illnesses like cancer are often associated with extensive and costly medical care and treatment that can exceed traditional health insurance coverages. These extra costs can create significant financial strain for many people. There is a way to help protect your finances and allow you to focus on recovery. CRITICAL ILLNESS INSURANCE. Understanding what critical illness insurance is and how it can help protect you is essential.
What is critical illness insurance and why is it important?
Critical illness insurance is often called a “living benefit”, which differs from life insurance which is paid upon your death. The benefits in critical illness insurance are designed to pay you a lump-sum if you survive one of the illnesses or diseases listed in your policy. The money paid out is not ear-marked for any specific thing. It can be used as you wish and to cover a variety of potential needs.
Over time, the average life expectancy of Canadians has increased [2]. Critical illness insurance was developed with the realization that as people age, they have an increased risk of developing and surviving a severe illness such as a heart attack, stroke or cancer. These life-threating illnesses are often associated with extensive and costly medical care and treatment that can exceed traditional health insurance coverages and create a huge financial burden for the patient and their family. Critical illness insurance can provide this additional coverage for these expenses, helping you protect your finances and focus on your recovery.
How much does it cost?
Critical illness insurance policies are appealing for a number of reasons. Not only does the lump-sum benefit paid out provide flexibility to be used as you wish, but policies are generally inexpensive. It can cost as little as a dollar a day. Typically, the younger and the healthier you are the lower the cost of the premiums. Premium costs vary depending on your age and medical history, the amount of desired coverage, the number of illnesses covered by the policy and the individual insurance company.
What types of illnesses and diseases are covered by CI?
The majority of insurance companies offer critical illness policies that provide benefits for “qualifying” life-threatening conditions of:
- Heart attack
- Stroke
- Cancer
- Coronary bypass surgery
Plans are also available that offer coverage for more than 25 additional diseases and illnesses. Here are a few examples of these conditions:
- Aortic surgery, benign brain tumors, blindness, coma, deafness, dementia including Alzheimer’s disease, heart valve replacement, loss of limbs, loss of speech, motor neuron disease, Multiple Sclerosis, paralysis, severe burns, Parkinson’s disease
The expanded list of conditions covered varies between insurance companies. It is also important to know that the coverage can vary according to the degree of severity of the condition that is associated with an illness or disease eg. how serious the illness is. As well, some types of cancer may not be covered. Be sure to review your policy carefully with your insurance advisor, so you fully understand the coverage you are purchasing. Additionally, you may not be eligible for coverage if you have certain pre-existing medical conditions.
Make sure you have all the coverage you need. Speak to a licenced insurance advisor to discuss your existing insurance coverage and your need for critical illness insurance.
[1]https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6756131/#:~:text=Nearly%201%20in%202%20Canadians,100%20will%20die%20from%20cancer.
[2] https://www150.statcan.gc.ca/n1/pub/82-624-x/2014001/article/14009-eng.htm
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