Critical Illness Insurance

More and more Canadians concerned about the financial costs of major disease are turning to Critical Illness Insurance to gain peace-of-mind and protect their savings.  Critical Illness Insurance provides a lump sum payment to the beneficiary who has contracted or suffers from a major disease. This allows them to “soldier on” in the short-term and pursue treatment without the concern over immediate expenses.


What You Need To Know

Broadly, the usual illnesses covered are cancer, heart disease and stroke; more specifically paralysis, Dementia, Parkinson’s, loss of limbs and major organ failure are also covered, but each carrier and policy needs to be reviewed closely.  Critical Illness Insurance is not a reimbursement of medical expenses, specifically. The beneficiary who is typically the insured-person decides how the money will be spent.

The Details

The likelihood of contracting a covered illness is much greater than most people believe. According to the Canadian Cancer Society, one-third of Canadians will contract cancer. The Heart and Stroke Foundation states that 50% of heart attack victims are under the age of retirement, and 75% of stroke sufferers will be left permanently disabled. Although Critical Illness Insurance does not cover the disability, but rather the disease that caused it, the result is that employment possibilities and earning potential may be severely limited or eliminated.

The proceeds from Critical Illness Insurance can be used to modify homes and automobiles allowing recipients to maintain their independence. Every day bills can be covered, as well as accessing cutting-edge medical treatment to combat the disease. The funds can also be used to spend more time with family before health deteriorates further.

The Bottom Line

Like all insurance, Critical Illness Insurance should be a planned, reasoned purchase made well in advance of actually needing it. There are multiple options and details to consider, and your insurance advisor can discuss with you to ensure the proper fit for you and your needs.

For more information or to discuss further, please feel welcome to contact us.

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This information is designed to educate and inform you of financial strategies and products currently available. As each individual’s circumstances differ, it is important to review the suitability of these concepts for your particular needs with a Qualified Financial Advisor.