More often, we think of what will happen to our loved ones should we die prematurely than we think of the implications critical illness might have. Critical illnesses are accompanied by massive hospital bills, care, and adaptation fee, as well as lack of stable income, should the victim be the sole breadwinner of the family.
Have you considered what will happen to you and your family should you be diagnosed with a critical illness?
What is Critical Illness Insurance?
Approximately, more than a quarter percent of the workforce population encounter critical illness before the retirement age. That is a fun fact. Smart people take safety precautions for their own good and that of their loved ones; that is where critical insurance comes in.
Critical insurance is the kind of cover that is designed to provide financial assistance in the event that the policyholder is diagnosed with such illness. This should not be confused with disability insurance which is applicable when a person is unable to work due to health reasons and it involves being paid a percentage of your income.
How does Critical Illness Insurance work?
- Visit an insurer and choose an insurance cover that works for you
- Be consistent with the payment of your premiums
- When diagnosed with a critical illness, file a claim for the support that maybe be subject to a certain waiting period
- Receive your payment as you recover.
Why should you consider purchasing Critical Insurance?
When you get diagnosed with a critical illness, you will lose the ability to work and generate income which is a situation that will be accompanied by a severe financial strain. This will be because of the accelerated rate of needs and lack of stable income. Having critical illness insurance can help bridge the gap and reduce the financial strain as you recover by giving you some peace of mind with the knowledge that most of your financial liabilities are covered. Besides paying for the bills, it may also help with charges that come with home alterations to fit your conditions as per the critical situations the policyholder encounters due to the critical condition.
Who needs Critical Illness Insurance?
The critical illness insurance is best suited for all those who have loved ones that depend on them for financial support. In the event that they are diagnosed with a critical condition that may render them unable to provide consistent financial support, the insurance company will come in handy to ease the burden of finance and the recovery process.
What are the benefits of Critical Illness Insurance?
Easy financial time should you be diagnosed with a critical illness.
The insurance company can provide you with a sum of money that you can decide to use for bills, home alterations, medical care and support, and recovery process, etc
It is important you check the rate of payouts before purchasing a critical illness policy to ensure that whatever you get works for you.
Many policyholders have ended up using the portions of payouts they receive from insurers to invest mostly in the future of their loved ones.
Should you get a standalone critical insurance policy or Critical Illness Rider?
- Factor
- Coverage
- Sum assured
- Medical Test
- Renewal
- Number of diseases covered
- Premium
- Waiting period
- Standalone Critical Illness Cover
- Provides comprehensive coverage
- The sum insured is provided in a flexible agreement
- Medical test required
- Renewed after every 5 years
- Covers more than 20 core diseases
- Changes with age and health conditions of the policyholder
- 30-90 days
- Critical Illness Rider
- The cover will depend on the base policy on which critical illness insurance is the rider
- The assured amount is subject to the covered amount of the base policy and cannot exceed it
- No medical tests required
- Renewed along with the base policy.
- Varies as per the policies of the rider but generally approximately 8 ailments
- It remains the same throughout which makes it slightly cheaper.
- Cover starts immediately
What does Critical Illness Insurance cover?
- Alzheimer’s diseases
- Aortic surgery
- Aplastic anemia
- Bacterial meningitis
- Benign brain tumor
- Blindness
- Cancer – life-threatening
- Coma
- Coronary artery bypass surgery
- Deafness
- Heart attack
- Heart valve replacement
- Kidney failure
- Loss of independent existences
- Loss of limbs
- Loss of speech
- Major organ transplant
- Severe burns
- Motor neuron diseases
- Multiple sclerosis
- Occupational HIV infection
- Paralysis
- Parkinson’s diseases
- Stroke – cerebrovascular accident
- Major organ failure on the waiting list
Our Trusted Partners
Riders
- Protection against life-threatening diseases and disorders
- Premium remains the same
- Double tax benefit
FAQs
Why do I need critical illness insurance?
A large percentage of Canadians have been victims of critical illnesses as well as victors annually given proper and immediate medication. Statistics have shown that between 40,000 to 50,000 Canadians have a stroke each year and 75% survive the initial incident while approximately 75,000 Canadians have a heart attack each year and more than 80% of them survive when admitted to the hospital.
Every chance of recovery for everyone that becomes a victim of critical illness requires proper financial planning due to the high costs of medication. And this is the grand reason for requiring critical illness insurance. The insurer will provide you with lump-sum money at your critical time which will help with bills, fees, and other recovery expenses necessary.
Do I really need critical illness insurance when I have extended health benefits/group insurance?
Group insurance and extended health care are not enough to provide the same health coverage provided by the critical insurance plan. Most of those plans have limited time while recovering from critical illness may take months in which you will require all the support you can get. Critical insurance also has the advantage of covering extra expenses such as travel, home care, or therapy situations that may have led to depleted savings, reduced retirement or education plan contributions, or the liquidation of assets should you not have critical insurance.
How will I know if I’m eligible to make a claim?
You can only make the insurance upon being diagnosed by a certified physician with a covered critical illness as stated in your insurance policy. After the agreed-upon waiting period, you’re eligible to file a claim that is made by filling your details in the claim documents.
Why is it that the premiums increase as I get older?
The older you get, the more likely that you are to getting a life-critical illness like cancer, heart attack, or any heart diseases which will be costly. The premiums are more expensive as a way of putting the insurer in a better position to manage the situation of bills and expenses in the event you get to need help in your advanced age. For any other additional information, please check the insurance policy.
Are my critical insurance benefits subject to taxation?
No. Under existing Canadian tax laws, all payments under the TD Critical Illness Recovery Plan are tax-free.
What are the most appropriate ways of using my benefits?
No. The money you receive from a critical illness insurance policy can be used any way you like: from home renovations to retraining, even a vacation. It’s up to you.