What is critical illness insurance? Critical illness insurance is a form of health insurance that provides you with a tax-free lump sum payment to use however you need should you become seriously ill.
This type of health insurance is suitable for anyone seeking financial protection to help cover the costs associated with recovering from a life altering illness or for those looking to protect loved once in the event they experience a life altering illness.
The cost of this insurance varies depending on your age, so the younger and healthier you are, the lower the premium is going to be. However, there are also several other factors such as medical condition, the insurance company, the amount of coverage, and the number of illnesses covered by the policy.
What are the types of illnesses covered by Critical Illness Insurance?
The types of illnesses covered by critical illness insurance differ from company to company. However, typical illnesses covered by critical illness insurance may include:
- Cancer
- Stroke
- Heart attack
- Multiple sclerosis
- Blindness
- Alzheimer’s
- Paralysis
- Kidney failure
You’ll be able to make a critical illness insurance claim if a physician, licensed to practice medicine in Canada and specializing in your particular illness, has diagnosed you with a critical illness covered by your insurance policy.
If the claim is approved, a lump sump benefit payment will be made to you after 30 days. If you don’t make a claim, for example if you die for a reason that isn’t covered by your insurance policy, the premiums you paid may be refunded to your beneficiary.
How does Critical Illness Insurance benefit you and your family?
The physical and emotional strain of a critical illness, as well as the financial impact can be devastating. You may face additional costs in the event you experience a life altering illness such as childcare, medication, home modifications, or treatments out of pocket.
Critical illness insurance can help offset some of the costs that isn’t covered by the Ontario Health Insurance Plan (OHIP). Critical illness insurance can also offer financial relief that can help you keep your retirement plans on track, so you don’t have to worry about the additional costs eating into your retirement savings. You can use the tax-free lump sum payment however you need such as supplementing lost income and covering private nursing costs.