Critical Illness Insurance (Dreaded Disease Coverage)
Critical illness insurance is a form of health insurance that
provides a lump-sum payment (the amount of insurance you applied for) should
you become seriously ill with one of the covered diseases. The three biggest disease covered is heart
attack, cancer and stroke.
The last thing you want to face when you’re busy concentrating
on your recovery is seeing the lifestyle that you and your family have
established destroyed in the process. Critical Illness Insurance provides a
tax-free lump sum payment you can use however you choose in the course of
dealing with your illness. When you or
your loved one is recovering the last thing you need is any added stress from not
working and meeting your financial obligations.
What are the types of illnesses covered by critical illness
Although they differ from company to company, typical illnesses
and diseases covered by critical illness insurance may include:
1. Aortic Surgery
2. Aplastic Anemia
3. Bacteria Meningitis
4. Benign Brain Tumour
6. Cancer (Life Threatening)
8. Coronary Angioplasty
9. Coronary Artery Bypass Surgery
11. Dementia including Alzheimer’s Disease
12. Early Breast Cancer
13. Early Prostate Cancer
14. Early Skin Cancer
15. Early Stage Blood Cancer
16. Early Stage Intestinal Cancer
17. Early Thyroid Cancer
18. Heart Attack
19. Heart Valve Replacement or Repair
20. Kidney Failure
21. Loss of Independent Existence
22. Loss of Limbs
23. Loss of Speech
24. Major Organ Failure on Waiting List
25. Major Organ Transplant
26. Motor Neuron Disease
27. Multiple Sclerosis
28. Occupational HIV Infection
30. Parkinson’s Disease and Specified Atypical Parkinsonian Disorders
31. Severe Burns
Coverage can also vary according to the degree of severity of,
or conditions associated with, an illness or disease. For example, if you are
diagnosed with a type of cancer that is treatable and that results in minimal
“down time”, you may not be eligible to make a claim.
Coverage cannot be purchased for a pre-existing condition or
Frequently Asked Questions about critical Illness Insurance
Do I need critical illness insurance?
In determining your need for critical illness insurance, you
should consider benefits that may already be available to you through other
insurance policies, such as life insurance and group health insurance. For
example, the benefits offered through your employer’s group benefits plan may
provide appropriate and adequate coverage in the event of a critical illness or
you may need to just top up the difference or gap in coverage.
You should also consider your personal circumstances and the
added financial strain that could be brought about by dealing with a serious
illness or disease. Public and private health insurance plans typically do not
provide coverage for day-to-day living expenses such as travel to and from
treatments, home care, child care or other bills.
Article from the Globe and Mail is it worth it?
How much does it cost?
Generally, the younger and healthier you are, the lower the
premium (cost). However, the cost varies depending on your age, medical
condition, the amount of coverage, the number of illnesses covered by the
policy, and the insurance company.
It pays to use an advisor to shop around to get the best fit.
When shopping for a critical illness plan, you should consider your income,
financial obligations, dependents, and health care needs.
How can I make a claim?
You can make a claim if a physician, licensed to practice
medicine in Canada and specializing in your particular illness, diagnoses you
with a critical illness or disease covered by your policy.
If my claim is approved, when will I receive payment?
Generally, a lump-sum benefit payment will be made to you 30
days after the claim has been approved.
There are no restrictions on how you use the money.
Once your claim is paid, your critical illness insurance policy
What if I never make a claim?
If you die for a reason not covered by the critical illness
policy, the premiums you paid may be refunded to your named beneficiary or they
go to the insurance company. Some plans will return the premium or a portion of
the premiums paid during the life of the policy if the policy matures and no claim
has been paid.
What if I make a full recovery?
You are entitled to collect the entire benefit even if you make
a full recovery. The insurance coverage
is meant to cover you if you get one of covered diseases, it is also meant for
you recover with peace of mind without dipping into your retirement fund. You can apply for new coverage again after 5
Is long-term care insurance the same as critical illness
No. Long-term care insurance provides for personal care on a
long-term basis if you need supervision or assistance with daily living
activities due to a chronic illness, disabling condition or cognitive
Long-term care policies are broken up into two type of polices
generally reimburse or for a set monthly benefit, up to a specified limit. The expenses incurred for various types of
care, such as nursing home or home health care need to be claimed to be
Is disability insurance
the same as critical illness insurance?
No. Disability insurance, also known as “income replacement” or
“pay cheque insurance”, provides a monthly income replacement benefit if you
become disabled and can no longer perform the normal duties of your work.
Generally, the benefit is limited to a percentage of your regular income (the
most typically being 66%) and ceases once you are back to work or you no longer
meet the definition of disability in the contract.
Unlike critical illness insurance which provides the full policy
benefit in a lump sum payment on diagnosis of a critical illness, long-term
disability policies usually have a waiting period from the onset of disability
before the payments begin. Unlike critical illness benefits, long-term
disability benefits may be affected by other income you receive or by your full
recovery from the illness.
Typical disability insurance is based on your annually earned
income and is based on also on your ability to earn an income. Critical Illness insurance is strictly based
upon your health and is not income related.
If you wish to apply online for Critical Illness you can apply
up to $75,000 just click this link.