Living Life Insurance

Critical Illness has been called a ‘Living life insurance’.  Advances in medicine means more and more people are surviving life threatening illnesses, such as heart attack, stroke and cancer.

When you have a critical illness, you may not be able to work for period of time, which can put a financial strain on the household.  Having critical insurance acts as an income replacement.  You don’t want to be burdened with trying to have pay for your bills while having high medical expenses and unable to work.

Although the type of illnesses covered differs from company to to company, typical illness and diseases that are included are stroke, Parkinson’s, some cancers, blindness, heart attack, MS, Alzheimer's, multiple sclerosis, kidney failure, organ transplant and paralysis.

Do I need critical illness insurance?

In trying to determine if you need this type of coverage, you should first look into your existing coverage through your employer.  Does your group benefits provide an adequate amount of coverage should you find yourself unable to work for at least 6 months?  You may also have extra expenses, such as medication not covered by your existing benefits, home care, or added parking expenses for hospital visits.

If you find yourself unable to work, will your spouse’s income be sufficient to replace your income, plus cover any additional medical expense not included in your group benefit?

How do I make a claim?

You can make a claim if your doctor diagnoses you with one of the critical illnesses covered under your policy.

When you are diagnosed with a critical illness and your claim is approved, your insurance will pay you a tax free one time lump sum.

Should you never have to make a claim during the time of your coverage, some policies provide you with 100% return on your premiums at expiry.

When I will receive my payment?

If you have to make a claim and it’s approved, you can typically expect to receive your one time lump sum within 30 days.

What if I never make a claim?

Some plans will offer a return on premium that will be payable to you after the term of your policy comes to an end.  If you die before your policy ends, the premiums you have paid may be refunded to your beneficiary.

Although the Return on Premium coverage costs more money per month, you may consider this to be a great option to save for your retirement.  If you never make a claim, you get back most of the money you contributed, to do with however you choose!

I already have Disability Insurance, I don’t need both

Disability insurance provides you a percentage of your monthly income if you find yourself unable to work.  The amount you receive is based on your salary, so the amount varies from person to person.  The coverage ceases once you are able to earn an income.  Unlike critical illness, there may be a waiting period before you can receive your first payment, and long term disability benefits may also be affected by other income you receive.

How can I apply for Critical Illness?

Insurance companies provide different coverages and different premium rates.   It’s best to connect with a qualified financial advisor that can walk you through the different plans to help you make the best decision for you and your family.  In many cases you can apply online with your financial advisor, and they are there to walk you through any questions you may have.

Still have questions about Critical Illness?  Reach out to us.  We're here to help.