Everything you wanted to know about critical illness cover but didn’t want to ask.
Critical illness cover is right up there with life insurance. We know hypothetically that it is a smart and “adult” purchase to make but we also know that we would prefer to imagine ourselves living long and healthy lives. Like life insurance, if you get caught without it, the consequences can be financially devastating so is it worth the risk?
Insurance with critical illness cover is becoming more common. You can choose to buy it individually or it may be available under your existing health insurance (policy dependent). With Canadians living longer, and diseases like cancer becoming more prevalent, it is more important than ever to consider the ramifications of living with a critical illness.
What does critical illness coverage include?
Most critical illness insurance in Canada includes stroke, cancer, heart attack, and kidney failure. These four conditions account for around 80% of insurance claims.
There are other conditions that can be covered too, depending on the product terms and the insurer offering.
What’s the difference between health insurance and critical illness insurance?
Health insurance helps you with costs as you incur them and often has exceptions for specific, more serious conditions. Critical illness insurance is paid out as a tax-free lump sum once your condition is detected and formally diagnosed as well as a survival period. This gives you more flexibility with your treatments options and helps with day-to-day living expenses if you are unable to work, either through physical ailments or needing time to come to terms with your condition.
What’s the difference between critical illness cover and disability insurance?
Disability insurance is paid out as income replacement every month. You usually have to wait a set period before it kicks in, and it will not cover you if you are over the age of retirement. Critical illness insurance will cover you at a minimal until age 65 or may be extended longer, depending on the policy.
If I get a critical illness, won’t I be likely to die?
This is a question we get asked a lot. We’re happy to say this is no longer the case. 2 in every 5 Canadians will develop cancer during their lifetime yet advancements in treatments and cures mean that the five-year net survival for all cancers combined is around 64%. The same patterns are emerging with other critical illnesses. It is entirely probable that you could live, and therefore be accruing healthcare costs, for some time after a critical illness diagnosis.
Who needs a critical illness policy?
In a nutshell, everybody. If you are young and healthy, you should consider it to lock in your premiums. As you age, the likelihood of critical illness rises. The longer you leave it, the higher your premiums could potentially be to offset the increased risk.
If you are older, you are already at increased risk so, it should be a pressing concern to secure coverage.
There are a few groups for whom critical illness cover is especially vital:
- Self-employed people: with no statutory sick pay, critical illness cover will give you peace of mind over finances while you concentrate on your treatment options.
- Those in good health with a family history of a critical illness: with an increased risk, you should consider critical illness cover before a problem arises.
- Those who are the sole income earner for their family: If you are unable to work, even temporarily, critical illness cover will ensure the bills won’t be a weight on your mind.
How do I get a critical illness insurance quote?
Your quote will be determined by a range of factors such as existing conditions, age, and the level of coverage required. Please get in touch for a personalized quote.
Peace of mind, whatever lies in store
While we like to plan for the best in life, it is wise to prepare for the worst. Critical illness cover provides security for you and your loved ones at a time when stress and emotions will be running high. It will allow you to concentrate on your treatment plan and, if needed, live your life to the fullest while you can. If you would like to discuss our options for critical illness coverage, please get in touch for a free quote or contact us directly for more information.
Blue Country Insurance – all your protection under one roof… because your health and life matter.
