Compare Critical Illness Insurance

If you have the health and lifestyle that allows you to get an attractive premium, critical illness insurance can be a real asset, especially if you have had several critical illnesses in your family. To determine if this is the right coverage for you, compare the coverage offered, its price along with the costs you may incur to support yourself, and its coverage in your province for treatment following a critical illness.

Generally, once you receive the lump sum fromyour insurer, you can use it as you wish. To qualify, you must have an illness listed in your policy. Several common health conditions are usually covered by critical illness insurance, such as heart attacks and strokes. If you have an illness that is not listed in your policy, you will not receive a benefit. In this case, if you also purchased a disability insurance policy, it may help you maintain income during your treatment and recovery. When reading your critical illness insurance policy, take note of the list of covered illnesses and check for exclusions. For example, the policy may cover cancers, but these must affect the tissues around the cancerous organ to be eligible to make a claim. Some insurance policies also offer psychological services, a second medical opinion, or recovery assistance.

No, your critical illness insurance benefits are not taxable in Canada. When you are diagnosed with an illness covered by your policy, you receive a tax-free lump sum payment. Typically, this amount is paid in a single lump sum, approximately 30 days after you make your claim. You then use this money to deal with the financial consequences of the illness.

Yes, but not at any time. You have a 30-day grace period from the effective date of your policy to cancel it if you are dissatisfied. This period allows you to review your policy in detail to be sure it is right for you. If you purchased your policy with a list of covered illnesses, but then discover that your policy has a list of exclusions that you are not happy with, you can cancel your policy as long as you meet this grace period. As with any other policy, breaking it afterward may be impossible or costly in penalties.

If you’re in excellent health, you probably think you don’t need critical illness coverage. But this is when you can get the best deal. Depending on the province you live in, you may have different health services covered by your government plan. But it’s a mistake to believe that public plans will pay for everything you need as a sick person. Can you afford health services that are not covered? You may need them, for example, if an experimental treatment gives you a better chance of recovery. In addition, private insurance allows you to use the money for help at home or for any other need that may arise during an illness.

Life insurance does not include critical illness coverage. While your critical illness coverage pays out during your lifetime, life insurance is designed for your survivors. It pays your beneficiaries, such as your children, the amount specified in the policy when you die. However, it is possible to buy more than one insurance policy or combine them to cover everything related to your health: life insurance, disability and critical illness.

The amount of insurance you purchase will definitely affect the annual premium you pay. There is no need to choose an amount that is too high for your needs. The lump sum you want to receive in the event of a critical illness can easily vary from a few thousand dollars to over a million dollars. However, there is no guarantee that you will receive the full amount, as it will depend on your illness and its severity. While some conditions will entitle you to 100% of the insured amount, others will only allow you to receive a partial benefit, such as 35% or 50%. To estimate the amount of coverage you need, assess your financial needs by considering the percentage of coverage you will receive for illnesses that are common in Canada and those that tend to affect your family.

Critical illness insurance premiums vary greatly depending on the amount insured, the length of the coverage period, your age, occupation, gender, as well as whether you smoke or not. Critical illness policies are available in Canada for $15 per month for $50,000 of coverage. If you lower the amount of coverage to $10,000, you can even get it for just a few dollars a month! However, the monthly premium can go up to $400 for an elderly smoker.

Anyone can need it since no one knows who and when the illness will strike. It is even possible to insure a child. Are there gaps in your public plan? It’s a good idea to purchase critical illness insurance. Your social network may not be available to support you in the event of illness. What if you need to hire professional help? This is another situation where critical illness insurance is a good idea. Are you anxious about the impact of a critical illness on your finances? Again, it may be time to find a policy that’s right for you!

Critical illness insurance purchased individually cannot be deducted from your income, that’s the law. The premiums you pay are considered a personal expense, made with after-tax money. However, you can probably include part of your premium as a medical expense, which is eligible for a tax credit. Check with your accountant to see if this is possible. Also, be aware that the insurance benefits you receive in the event of a critical illness will not be taxable.

If you are currently suffering from cancer, you will have a hard time finding an insurer who would be willing to sign a contract. Those who are open to the idea will likely offer to exclude cancer from the coverage of your policy. This is because your policy will have exclusions, including anything that affects your pre-existing conditions. These are illnesses that showed signs or symptoms before you signed the policy, and the exclusion may even extend to illnesses for which you consulted a doctor before signing. Your chances of getting a good policy will increase if you have been recovering from your cancer for some time.

The list of covered critical illnesses is contained in your policy, which is what you should refer to. To give you an idea of what is covered, it is common to find stroke, myocardial infarction, life-threatening cancers, aplastic anemia, severe burns, type 1 diabetes mellitus, muscular dystrophy, flesh-eating disease, occupational HIV infection, and other illnesses, occupational HIV infection, kidney failure, vital organ transplant, Alzheimer’s, Lyme and Parkinson’s diseases, bacterial meningitis, paralysis, loss of speech, loss of limbs, multiple sclerosis and several other medical conditions.

You can make a claim with your insurer as soon as you are diagnosed with a critical illness covered under your policy. The diagnosis must be made by a physician licensed in Canada. If you are diagnosed with a covered illness, you will receive the benefit after a 30-day period. This period is used to verify the information provided and you must survive it to receive your lump sum payment.