Critical Illness Insurance
What is Critical Illness Insurance?
Critical illness insurance typically pays a lump sum cash payment if you are diagnosed with a specific illness included in the policy and survive a waiting period.
The Canadian healthcare system pays for much of our critical medical treatment, but it doesn’t cover hundreds of dollars for monthly parking fees, gas, food, and lodging away from home. Nor does it pay for the thousands of dollars in lost income of a close family member, who becomes a caregiver for the person who becomes ill.
If you were facing a life-threatening illness, would you value having access to extra cash to help see you and your family through your recovery? Owning critical illness insurance is about giving you and your family choices in case of the unexpected.
Critical illness insurance:
- Typically pays a lump sum benefit when someone is diagnosed with a covered critical illness and survives the waiting period, typically 30 days.
- Is typically sold in terms of 10 years and 20 years, or to the age of 75 or 100, with the option to lock in premiums.
- Policies can range from covering a single condition to many conditions (typically 24+).
- A variety of riders are available for the following optional benefits:
- Return-of-premium – after a designated time you may cancel your coverage and have your premium returned;
- Loss of independent existence;
- Disability waiver of premium, which means you do not need to pay the premium if you become disabled for a certain period of time.