Critical Illness Insurance: Why You Should Buy It?

Critical Illness Plan To Avoid Financial Crisis During Terminal Illness

Critical illness insurance may be effective at covering costs that disability insurance doesn’t.

The most compelling reason to buy a critical illness policy would be if someone isn’t eligible for disability insurance – for instance, a stay-at-home parent who doesn’t have an income to replace.

But it could also help someone unprepared for the financial hardships that may come with a critical illness diagnosis such as the cost of medical treatment or for a spouse to take time off work.

Unlike disability insurance, which protects your income to age 65 and generally kicks in after 90 days of disability, critical illness insurance pays out a lump sum in the event of critical illnesses such as cancer, a stroke, or a heart attack.

Get the peace of mind that comes with knowing that you and your loved ones are taken care of in case something happens by getting health insurance today. You will never regret being prepared for the unexpected. 

If you find yourself incurring a large expense and your expenses don’t allow you to build an emergency fund, then critical illness insurance becomes that line of defense for those that don’t want to cash in their RRSP and undermine their long-term savings.

A potential downside is that to receive a payout you must often meet very strict and specific definitions of disease. Also, to get a critical illness lump sum you also must survive a waiting period, which is normally 30 days. The nature of critical illness insurance also means that those relying solely on it won’t receive any more money beyond the lump sum.

Critical Illness Insurance Canada

Critical illness insurance should not be used as a replacement for disability insurance.

It really becomes about what’s affordable and it never makes sense to over-insure because you’re a scared person. If you are talking about a lump sum amount that would make a difference to someone, we’re probably talking about $50,000.

If you were to purchase a critical illness policy at the age of 25, it only ended up costing her $6 a month in premiums. That’s a couple of cups of coffee and It is well worth the security and the safety of having it.

Critical illness insurance can help you pay for both your usual expenses, as well as additional healthcare costs if you become severely ill. But not all diseases are covered, so you need to consider your options carefully.

If the unspeakable were to happen, chances are you’d need to take time off work – months or possibly even years – to focus on your treatment and recovery. Aside from the need to replace lost income to cover your usual expenses, you might also require additional funds to cover out-of-pocket healthcare costs, such as uninsured prescriptions or treatments, travel or transportation, home care, and modifications to your home or vehicle.

Critical illness insurance can help you pay for all these expenses – or any other financial needs – until you are well enough to return to work. Here’s everything you need to know about critical illness insurance in Canada.

Alternatively, you could also investigate disability insurance coverage, which is generally cheaper than critical illness insurance but pays a monthly rather than lump-sum payout, as explained below.

Critical illness insurance

Critical Illness vs. Disability Insurance

Disability insurance is quite different from critical illness insurance, in that it’s only meant to replace a portion of your monthly income if you are unable to work due to an illness or accident. As such, it may help you pay for your usual day-to-day expenses, but likely won’t be enough to pay for any additional costs resulting from a health condition. That’s where the lump-sum critical illness insurance benefit can really help. More specifically, this is how the coverage and benefit payments differ between the two types of insurance.

Glenn Stewart Critical Illness Insurance Advisor
Glenn Stewart Critical Illness Insurance Advisor

I have a long history of experience in the field, which you can benefit from.

Call Glenn Stewart Critical Illness Insurance Broker Now at 519-896-9970

Invest in Critical Illness Insurance in Canada & Avoid Financial Turmoil

Life can feel perfect when things are on the right track but no matter life is full of uncertainties. Regardless of how much you earn every month, medical expenses are a serious concern for every family. From chronic problems to serious illnesses, a lot can affect a family’s morale and also dent finances. Illnesses like leukemia, cancer, and even serious accidents can require a lot of money for the necessary treatments.

Paying for the treatment of such serious conditions is not always possible for every person. So, if you want to stay in control, investing in a Critical Illness Insurance in Canada can be a smart decision.

  • Heart attack
  • Stroke
  • Cancer
  • Coronary artery bypass surgery
  • Multiple sclerosis
  • Kidney failure
  • Paralysis
  • Blindness and deafness
  • Rheumatoid arthritis
  • Benign brain tumor
  • Amputation or major organ transplant
  • Alzheimer’s, Parkinson’s or motor neuron disease (a.k.a. ALS or Lou Gehrig’s disease)
  • Coma
  • Loss of speech
  • Severe burns
  • Occupational HIV infection
  • Aortic surgery
  • Heart valve replacement and plenty more.

These were just some of an even longer list of diseases and conditions that are covered under Critical Illness Insurance in Canada.

Each condition mentioned above requires a lot of money for the necessary treatment. But not every family financially able enough to pay the bills. So, if you’re looking to safeguard your family’s finances, investing in such a policy is always wiser. No matter what happens you and also your family members always have a backup.

For more information related to Critical Illness Insurance in Canada and also how to buy one, feel free to reach out to us anytime. Give us a call to schedule an appointment. We’ll help you plan and also buy the necessary policy for long term financial stability. Glen Stewart Insurance, a name you can trust with insurance consultation.

FAQ Frequently Asked Questions About Critical Illness Insurance

Critical illness insurance is a type of insurance coverage that provides a lump-sum payment if you are diagnosed with a covered critical illness. The policy typically covers a predefined list of serious illnesses such as cancer, heart attack, stroke, organ transplant, or major surgeries. The lump-sum payment can be used to cover medical expenses, ongoing treatment costs, living expenses, or any other financial needs that may arise during your illness.

While health insurance covers medical expenses, critical illness insurance provides a lump-sum payment upon the diagnosis of a covered critical illness. Unlike health insurance, which reimburses actual expenses, critical illness insurance pays a predetermined lump sum that policyholders can use as they see fit.

Critical illness insurance is suitable for individuals who want financial protection in the event of a serious illness. It can be particularly beneficial for those with dependents, individuals without sufficient savings to cover medical costs, or those concerned about the potential financial impact of a critical illness on their lifestyle.

Each insurance provider has its own underwriting guidelines, including rules regarding pre-existing conditions. Some policies may exclude pre-existing conditions from coverage, while others may provide coverage after a waiting period. It’s best to consult with insurance providers to understand their specific terms and conditions regarding pre-existing conditions.

The amount of coverage you need depends on various factors, such as your financial obligations, medical expenses, lifestyle, and income replacement needs. Consider factors like outstanding debts, living expenses, medical treatment costs, and potential loss of income when determining the appropriate coverage amount. Working with an insurance professional can help you assess your needs accurately.

Yes, critical illness insurance can be purchased as a standalone policy or in combination with other types of coverage. For example, it can be bundled with life insurance or disability insurance. This combination ensures comprehensive protection against various risks, including serious illnesses, death, or disability.

Most critical illness insurance policies have a waiting period, typically 90 days from the policy’s effective date, during which claims for any diagnosed illnesses are not covered. Waiting periods can vary among insurance providers, so it’s important to review policy details to understand specific waiting period requirements.

To make a claim, you need to notify your insurance provider and provide relevant documentation, such as medical reports, diagnoses, and treatment records. The insurance company will assess the claim based on the policy terms and conditions. It’s crucial to follow the claims process outlined by your specific insurance provider.

Yes, you can typically cancel your critical illness insurance policy. However, the terms and conditions regarding cancellation and any applicable penalties or refunds may vary among insurance providers. It’s essential to review your policy or consult with your insurance provider to understand the cancellation process.

Choosing the right critical illness insurance policy involves evaluating your specific needs, comparing coverage options, considering premiums, and assessing the reputation and financial stability of insurance providers. Working with an experienced insurance professional can help you navigate the options and select a policy that best suits your requirements.

Please note that the information provided in this FAQ section is for general reference only. It’s advisable to consult with insurance professionals and carefully review policy terms and conditions to understand the specific details and coverage of any critical illness insurance policy.

For more information related to Critical Illness Insurance in Canada and also how to buy one, feel free to reach out to us anytime. Give us a call to schedule an appointment.

Call Glenn Stewart Critical Illness Insurance Broker Now at 519-896-9970

Critical Illness Insurance available in Kitchener, Waterloo, Guelph, Milton, Mississauga, Toronto, Elora, Elmira, Listowel, Mitchell, Stratford, New Hamburg, Brantford, Hamilton, Burlington, Fergus, Oakville, and Cambridge area.