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Critical Illness Insurance

What is Critical Illness Insurance?

In Canada, approximately 1 in 3 people will experience a critical illness at some point in their life. The good news is that as medicine advances, many people will survive. Unfortunately, however, having a critical illness such as cancer, a heart attack, or stroke can be very expensive. In addition to costly medical care – not all of which is covered by OHIP – you may have to take time off work, get extra childcare, or make modifications to your home. It is these types of expenses that critical illness insurance is designed to cover.

If you survive a critical illness such as heart attack, stroke or cancer by 30 days, a critical illness insurance policy would pay you a lump sum of money to use however you choose. (This differs from Disability Insurance which would pay a monthly income in the event you couldn’t work).

Having a critical illness is understandably stressful but having good Critical Illness coverage in place means it doesn’t have to be financially stressful as well.

What Illness are Covered in Critical Illness Policies

A standard Critical Illness Insurance policy will cover life-threatening cancer, heart attack and stroke. There are many policies however that also cover other conditions such as kidney disease, multiple sclerosis, etc.

As well, there are usually additional options you may choose such as “second event” (where the policy covers you in case you get more than one condition) and “return on premium” (where you can get a portion of your premiums paid back to you if you do not make a claim by a certain age).

Your broker can discuss these options in greater detail and help you determine if any of them are right for you.

How are Rates Calculated?

  • The coverage amount:

    The more you are covered for, the higher your premiums will be.

  • Your age:

    Critical illness insurance is less costly when you are younger. This is why you shouldn’t wait to get insured!

  • Personal and family history:

    If you are in good health and your immediate family does not have a history of critical illness, you will get the best rates on a policy. A family history of critical illness usually means you will have higher premiums – and in some cases it could mean getting denied for insurance. If you personally have had a critical illness, it often means your insurance application will be denied. This is why it is so important to get this type of insurance early and while you are healthy.

Benefits of Critical Illness Insurance:

  • Financial protection against the most common critical illnesses.

  • Receive a lump sum payment in the event you survive a critical illness by at least 30 days.

  • Use the claim money however you choose.

  • Choose optional benefits such as Second Event and Return on Premium.

Choosing the Right Plan

There is no doubt that critical illness insurance is an important element of your financial plan however choosing the right plan and options can feel complicated. Before applying for Critical Illness insurance, speak with one of our brokers who can help you understand your options and ensure you are getting the right coverage for you.