Critical Illness Insurance
Critical illness insurance provides for a lump-sum of a tax-free payment if you are diagnosed with one of the illnesses covered in the policy. This money is meant to assist in your recovery and beyond.
Within your critical illness insurance coverage you can choose an option that will refund all the premiums that you have paid if you remain in good health. Critical illness insurance guarantees that you will receive cash when you need it most! In accordance with the policy contract specification: You will receive a tax free lump sum of cash in the event of a critical illness and your beneficiaries will receive a refund of all the premiums that you have paid, tax free, in the event of death. And, the most attractive feature is that if no claim is made at policy maturity, you will receive a refund of your premiums, tax free as well.
- 1 in 3 people will be diagnosed with cancer in their lifetime, 60% of those will survive more than 5 years
- 1 in 4 people will suffer from heart disease in their lifetime, 95% will survive their first heart attack
- 1 in 20 people will suffer a stroke before age 70, 80% will survive a first stroke
Source: Heart and Stroke Foundation Canadian Cancer Society
Critical illness insurance will help you to:
- Get the best treatment available without having to wait.
- Statistics says that in 1993, Canadians had to wait an average of 9.3 weeks between the time their doctor diagnosed them with an illness and the time they received their first treatment.
- In 2007, this waiting period increased to 18.3 weeks!
- Replace the salary of your spouse who wants to be by your side
- Cover additional medical expenses:
- PET/CT Scan: detects the spread of cancer cells, approximate cost $2,500 and available only in a few provinces
- MRI: soft-tissue imaging to detect cancer, approximate cost $600-$1,000
- Colonoscopy: intensive exam using optical system, approximate cost - $850
- MIBI Stress Test: detected heart deceases, approximate cost $650
- Get second opinion from the Best Doctors, an organization that identifies the best physician to treat your illness in Canada or elsewhere, MedExtra would charge $180/hour for a similar service
- Cover cost of treatment and medication are not covered by provincial health plan, expenses for home care and psychologist: HIFU ultrasound treatment for prostate cancer cells, destroys cancer cells without damaging surrounding organs, available in Ontario only -$22,000; Avastin, drug treatment for colon cancer, patients receive two treatments per month, it's not covered by provincial health plans - $4,500 to $6,000/month
- Recover without the stress associated with reduced income, since you still have to continue to pay your household expenses (mortgage and bill payments, food, etc.)
- Cover other expenses associated with your condition: transportation and accommodation, at-home assistance (housekeeping, sitter, meals), alternative treatment (alternative medicine, physiotherapy)
These illnesses are covered by critical illness insurance. Check the specific policy for the full list.
- Heart attack
- Stroke
- Coronary artery bypass surgery
- Heart valve replacement
- Aortic surgery
- Cancer
- Benign brain tumor
- Coma
- Motor neuron disease
- Kidney failure
- Major organ transplant
- Major organ failure on waiting list
- Multiple sclerosis
- Blindness
- Deafness
- Alzheimer's disease
- Parkinson's disease
- Loss of speech
- Paralysis
- Loss of limbs
- Bacterial meningitis
- Severe burns
- Occupational HIV infection
- Aplastic anemia
- Loss of independent existence
Term critical illness
In this type critical illness insurance coverage premiums remain the same during a specified term. Insurance could be rolled over into the next term with an increase in premium and no proof of insurability will be required. Some term CI plans are convertible to permanent until a certain age, usually age 65.
The following options are available:
- Term 10
- Term 20
- Term to age 65
- Term to age 75
Permanent critical illness
This plan provides you the critical illness insurance coverage for the whole life with an option to pay up the insurance in 10, 20 years or at age 65. This means that you will be paying your critical illness premiums only for 10 years, but you will be covered until age 100.
Your contract with the insurance company ends as soon as one of the following occurs:
- You reach the determined age
- In the event of death
- You suffer a critical illness and receive your benefit
- You've taken advantage of the premium refund option
- You've stopped paying your premiums.
