Critical Illness Insurance
So what exactly is a Critical Illness?
There is no specific definition, but there are pretty accepted understandings in the insurance industry. Each company that offers this type of benefit defines the specific terms and conditions under which they would pay a lump sum. They specifically define the covered illnesses and the specific terms under which benefits are paid.
Examples of critical illnesses covered, would be cancer, heart attack, stroke, kidney failure, organ transplant, some HIV infections, some heart surgeries etc. Lump sum payouts are made upon the diagnosis of such an illness. These lump sums can range from as little as $5,000 up to $150,000.
With Universal Health Care available to most Canadians, and with it, most medical expenses covered with these types of related illnesses, you may wonder why bother buying a lump sum of cash in the event of a critical illness diagnosis. Good question.
In reality, if a family member is diagnosed with a critical illness, another family member will end up losing income because of time demands of the critically ill person. As well, there are always additional travel expenses, time missed from work, etc, involved with the care and treatment of a critically ill person.
Some people have purchased critical illness insurance so they will have cash up front in the event of a critical illness diagnosis. This gives give them access to optional treatment programs and diagnostic tests through private clinics, because they will have the cash to pay anything not covered by universal or other health care plans.
Critical Illness insurance is often referred to as a “living benefit”.
We can’t advise you what to do in this area of critical illness, we can only point out your options. Are you currently comfortable with your present situation?
If you want some specific answers and/or a quote, by all means click here and complete the questionnaire. One of The Benefit Guys will be back in touch with you by your preferred choice of contact.