But with advances in medical science chances of death due to these illnesses have substantially reduced. About 80% survive heart attack and stroke, whereas cancer patients live longer than ever before. As a result, survivors live with a reduced ability to work and lower or no income – but with increasing financial liabilities.
The answer is timely protection with critical illness insurance. Why timely? Because once you are diagnosed, no insurance company will cover you.
What Is Critical Illness Insurance?
Critical illness Insurance provides a tax free cash payout upon the diagnosis of specific diseases listed below. In general, one must survive 30 days from the date of diagnosis in order to collect.
Medical technology is such that most people can survive a critical illness today. It was specifically designed to help you cope with the devastating financial consequences related to treatment and recovery. The use of the proceeds is solely at the policy owner’s discretion.
The following is a list of illnesses that the insurance industry in Canada views as critical illnesses. These vary somewhat from carrier to carrier. However, the first four illnesses (life-threatening cancer, heart attack, stroke, and coronary artery bypass surgery) are considered basic.
2. Heart Attack
4. Coronary Artery Bypass Surgery
5. Heart Valve Replacement
6. Aortic Surgery
7. Multiple Sclerosis
8. Kidney Failure
9. Parkinson’s Disease
11. Organ Transplants
12. Major Organ Failure on Waiting List
14. Motor Neuron Disease
16. Benign Brain Tumor
20. Occupational HIV Infection
21. Loss of Speech
22. Severe Burns
23. Aplastic Anemia
24. Bacterial Meningitis
25. Loss of Independent Existence – commands its own policy because financial implications can be potentially overwhelming.
Why Should You Have It?
If unfortunately you are diagnosed with a critical illness, what would happen to you, your family, your lifestyle and your assets? Coping with everything, while concentrating on recovery, can take its toll. Furthermore, managing unexpected additional expenses can make the situation worse. The odds are that you will survive because of advances in medical technology and new treatments. The fact is that you need financial independence not because you are going to die, but because you are going to live.
Critical illness insurance offers a lump sum settlement, it provides options that can address both anticipated and unexpected cash crunches. One does not have to be working to qualify for critical illness coverage. In fact, with critical illness protection, both spouses could be off work with one assisting the other through their recovery period.
Critical illness insurance can be purchased with additional features that include automatic increases in coverage, waiver of premiums, accidental death and dismemberment benefits, mortgage disability protection, hospitalization benefits and most importantly, an option to convert to a long term care contract, if one has not claimed benefits on their policy.
The more popular features are return of premium on death and return of premium on expiry or surrender. The logic behind these features is that if one dies before making a claim or one is fortunate not to have contracted a critical illness, all premiums paid into the plan will be returned.
Selecting the appropriate plan can be a daunting exercise. We are happy to offer guidance, answer your questions and provide you with confidential quote(s) from the marketplace.