Critical Illness Insurance

Critical illness insurance pays you a lump sum of money, tax free, should you be diagnosed with a critical medical condition, and survive for a predetermined period of time. While this can differ based on the critical illness condition, it is typically between 30 – 90 days. The lump sum cash can be used for medical treatment or anything that you determine you want to spend it on. Each plan can vary in terms of the number of conditions covered. Plans can cover up to 25 different conditions, or just heart attack, cancer and stoke. Each policy will clearly outline the conditions that will be covered.

Critical illness is beneficial when:

• There is family history of certain critical illness, such are heart conditions or cancer. Based on this, coverage may be offered with higher premiums.

• If you are the primary income earner and have dependents.

• No savings to take care of medical expenses. The cash lump sum helps to allow for

  physical, emotional and mental recovery.

• If you have your own company, and are concerned about being unable to work due

  to a critical illness diagnosis

Critical illness insurance costs are usually higher than term life insurance, as there are more Canadians likely to experience a critical illness before the age of 75, compared to those who will die before the same age. The leading causes of critical illness insurance claims are cancer, heart attack and stroke. Some plans do offer a return of premium option, if a claim is not made for a set period of time.