Contact Us: +1 (778)-869-4584

Critical Illness Plan

Critical Illness Insurance: Is It Worth It?

Understanding Critical Illness Insurance

Critical illness insurance offers peace of mind when facing life’s unexpected health challenges. This policy provides a lump-sum benefit upon the diagnosis of a serious illness, allowing you to focus on recovery rather than finances. With statistics showing that about 80% of people will be diagnosed with a critical illness in their lifetime, this coverage becomes a valuable safety net.

Why You Need Critical Illness insurance

While Canada’s universal healthcare system covers many medical expenses, it does not cover everything. For one, being absent from work or business during your treatment can cause missed payment of your bills. Loss of income can add to your stress.

Benefits from critical illness insurance can be used however you like. The lumpsum benefit allows you to:

Replace your income, or even your family member's income so that he or she can take time off work to care for you and accompany you during your treatments
Pay for assistance at home
Pay for treatments and medications not covered by provincial health insurance
Pay for the costs of treatment abroad (we all know there is a long wait time)
Continue repaying personal or business financial obligations such as your mortgage, rent, business overhead, etc.
Pay for travel expenses during treatments
Pay for childcare expenses during treatment and recovery
Renovate your home or vehicle to suit your needs
Fulfill your bucket list
Pay for living accommodations near the hospital so you don't have to travel back & forth for your treatment
Protect your retirement savings (you don't have to withdraw from your retirement funds)

What Does Critical Illness Insurance Cover?

In Canada, critical illness insurance typically covers a range of life-threatening conditions, including:

Cancer
Heart attack
Stroke
Multiple sclerosis
Parkinson's disease
Kidney failure
Loss of limbs
Blindness or deafness
Paralysis
Severe burns

*The specific illnesses covered can vary by provider, so it’s essential to review the policy details carefully.

Why Many Canadians Are Considering This Coverage

Critical illness insurance has become increasingly popular among Canadians seeking financial protection against unexpected health crises. This policy provides a lump-sum benefit upon diagnosis of specified critical illnesses, such as cancer, heart attack, or multiple sclerosis. Unlike disability insurance, which offers ongoing support, critical illness insurance is designed to address immediate expenses, allowing policyholders the freedom to allocate funds as they see fit.

Once diagnosed with a covered condition, you’ll receive a lump-sum payment, giving you the freedom to:

Financial Security: The payout can help cover treatment costs, living expenses, or even help pay off debts, relieving some of the financial burdens during recovery.
Peace of Mind: Knowing you have financial support in place can alleviate stress for both you and your family.
Flexibility: The funds can be used however you need, whether it’s for treatment, rehabilitation, or adjusting your lifestyle.

Rates and Eligibility

As with any insurance, the cost of critical illness coverage depends on various factors, including:

Age
Health status
Family history
Coverage amount

Do You Need Critical Illness Insurance?

While there are some disadvantages, the potential for payout makes critical illness insurance a low-risk investment compared to other insurance products. If you’re concerned about how a serious illness might impact your family’s financial well-being or your quality of life during recovery, critical illness insurance is worth considering.

Critical Illness Insurance vs. Life Insurance

Critical Illness Insurance

Pays a benefit upon diagnosis of a critical illness
Focuses on your well-being during your lifetime

Life Insurance

Provides a death benefit to your beneficiaries

Guarantees a payout upon death

*The main difference is that life insurance pays out if you die, whereas critical illness insurance pays out if you survive a critical illness

*Both policies are essential for a comprehensive financial plan.

Choosing the Right Critical Illness Insurance Policy

When selecting a critical illness insurance policy, consider these key factors:

Simplified Issue Options: Many insurers offer quick, online approval for policies.
Flexible Premiums: Options like limited pay and return of premium can lessen financial impact.
Eligible Illnesses: Look for policies covering a wide range of conditions.
Coverage Amounts: Policies may range from $10,000 to several million dollars.
Survival Period: Most policies have a 30-day survival period before benefits are paid.
Children’s Coverage: Optional riders for children may be available.
Partial Payouts: Some policies allow for partial payouts for certain conditions.

Is It Worth Paying for Critical Illness Insurance?

Yes, critical illness insurance can be worth the investment. Premiums start low, and having coverage can provide significant financial security during recovery from a serious illness. If affordability is a concern, consider a return of premium rider that refunds your premiums if no claims are made during the policy term.

Key Takeaways

Critical illness insurance is a living benefit, unlike life insurance, which pays out a death benefit.
It provides income replacement while you are recovering.
It provides essential coverage for conditions not fully covered by provincial health plans.
It offers significant financial relief during medical emergencies, making it a worthwhile investment for many Canadians.
The benefits can be utilized for various expenses related to the illness or even personal expenses unrelated to health. You can use the lumpsum benefit however you like..
Some policies offer children’s coverage or return of premium riders, providing additional flexibility.

Frequently Asked Questions

What is the difference between critical illness insurance and health insurance?

Critical illness insurance provides a lump-sum payment upon diagnosis of a severe illness, while health insurance covers routine medical expenses not fully paid by provincial health coverage.

Can I purchase critical illness insurance if I have a pre-existing condition?

Yes, you can purchase critical illness insurance even if you have a pre-existing condition. It depends on what pre-existing condition you have. We can search for the right critical illness product for you.

Can I customize my critical illness insurance policy?

Absolutely! You can often tailor your policy by selecting covered illnesses, determining payout amounts, and adding optional riders.

At Senior Secure Canada, we specialize in providing financial solutions that ensure guaranteed income for life, helping you retire with peace of mind. With personalized strategies tailored to your needs, we help you navigate retirement without the stress of market risks.