Critical illness insurance is a living benefit plan provided for Canadian residents in the event of a big health emergency. We all know that illness can strike at any time. Critical illness insurance will protect you from severe illnesses which include, but are not limited to: cancer, heart attack, stroke and many other illnesses.
Critical illness insurance guarantees that in the event you are diagnosed with any of the covered conditions and become critically ill, you will receive a large, tax free sum of cash, allowing you to cover expensive treatments, take the necessary time away from work, and ensure that no matter what, your family is provided for.
The chances of contracting potentially severe illness are higher than you might expect. According to the American Cancer Society, the risk of developing cancer is 1 in 2, with a 1 in 4 chance of being killed by the disease. Treatments and therapies are not simple, nor are they cheap with some costing upwards of thousands of dollars a month. Critical illness insurance is one of the best ways of protecting you and your family from extreme financial hardship.
In the Canadian insurance market, there are few great companies that provide critical illness insurance. Some of the companies include medical questionnaires and are asking about family medical history. Others, have non-medical guaranteed critical illness protection and you can be covered regardless of your current health or family history. The difference between the two is the amount of coverage you can get, and the riders you can add to your policy such as return of premium.
The cost of the critical illness insurance depends on your age, gender, health condition, type of plan, and other factors. Every insurance company has a different price and list of coverage options that you may be eligible to apply for, even with pre–existing conditions. By getting critical illness while you are healthy and young, you will have more affordable and higher coverage options, as well as the ability to customize your policy with all the great riders available to a greater extent.
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Return of Premium – A Win Win Rider
In the event that you pay for Critical illness insurance but never have to use it (as we always hope), you can add a Return of Premium Rider (available with some companies). This means that at a predetermined point in the future, (any time after 15 years or on expiry) so long as you have not made an insurance claim, you are entitled to get back all of the money you contributed to your policy in one lump sum payment.
However, in the event the insured passes during the waiting period, if there is a Return of Premium on death rider on the policy for the beneficiary, it guarantees a payout of all of the paid premiums to your beneficiary no matter what even before the 15 years.