Critical illness insurance
Despite the
fact that statistically, life expectancy is increasing, more and more people
are suffering from critical illnesses every year, such as cancer, stroke or heart attack. In
Canada, our provinces do cover hospitalization and all expenses in the hospital
itself, but we often forget about the extra costs associated with the illness and
recovery after the person is discharged.
The
statistics shows that:
• Survival after cancer has doubled since 1970;
• 75% of people survive their first stroke, but 60% of them remain disabled.
• 30% of new cancer cases and 17% of cancer deaths will occur in young and middle age of 20-59 years.
Expenses associated with critical illness can be different, such as: expenses for treatment (if you suddenly want to go abroad for treatment); medications that are not covered by your benefit plan, lost or reduced income due to disability or forced change in lifestyle (change of profession, early retirement, change of residence, additional expenses for restoring health, etc.). Even setting aside a decent amount of money for a "rainy day" is not always a guarantee that those savings will cover everything necessary for a full recovery. Therefore, many purchase critical illness insurance to avoid losing a large amount of money that were meant for a specific goal, like long term savings, investments, GIF funds and even retirement.
Let's take a look at the most important aspects
of this insurance: Here are examples of diseases that are covered in the company’s
list of illnesses, there are up to 25 of them on the list for adults and 35 for
children but those are the most common once:
- Heart Attack
- Stroke
- Multiple Sclerosis
- Cancer
- Heart Bypass Surgery
- Kidney Failure
- Paralysis
And many others.
If during the term of the policy the client falls ill with one of the illnesses listed by the company and survives for 30 days after the diagnosis, then the insurance is paid out to the client in a lump sum. Insurance payout is 100% tax-free, regardless of your profession, work status and your tax bracket. This type of insurance can be issued both with the option of a refund of payments (full 100% refund) after the expiration of the insurance period. Or the client can choose a policy without the return of premium it is up to the client at the time of the application.
In today's insurance market, it is also possible to insure people who already have some kind of critical illness. In this case, an exception will be in place for the already existing disease (only the first 2 years), but all other diseases will be covered. Such insurance is called Guaranteed Issue Critical Illness Insurance. At the age of 70, this insurance contract (Guaranteed Issue Critical Illness Insurance) usually ends.
For more information, please contact [email protected] or call 204-807-1705