What is critical illness insurance coverage?

Critical illness insurance coverage is a form of financial protection known as a living benefit. A critical illness insurance policy pays out a lump sum payment of tax-free cash if you get diagnosed with a serious, life-threatening medical condition covered by the insurance plan

Like life insurance coverage, critical illness insurance is also available in term or permanent options. Term critical illness insurance policies cover you for a fixed period or “term” and permanent critical illness insurance covers you until death - though you can pay the monthly premium for the policy upfront, typically over a duration of 10 or 20 years.

The benefit payment is called a living benefit because it does not depend on whether you have recovered or not from your illness. It is paid out while you are living, once it is established you have contracted a covered illness or gone through certain health incidents.

Depending on the condition and your insurance policy provider, you may have to survive for a certain amount of time - known as the survival or waiting period - before you are eligible for the payout.

Coverage can vary according to the severity of the condition you are diagnosed with. For example, some non-life-threatening cancers may not be covered, but more serious cancers might be covered. It will all depend on your policy.

Did You Know?

Critical illnesses are incredibly common in Canada

So how does critical illness insurance work?

Critical illness insurance policies work by providing you with a financial cushion. In the unfortunate event that you are diagnosed with one of the critical illnesses listed on the policy, you are given a lump sum cash payment.

You have the flexibility to use the cash any way you want to help you cope with the financial and emotional stress that is associated with a serious illness. In exchange, you pay a periodic sum of money to the insurance company, usually monthly, called a premium.

Critical illness insurance policies, sometimes called heart attack insurance, stroke insurance, or cancer insurance, can be purchased as a stand-alone policy, or as a rider on your existing life insurance policy coverage.

Critical illness insurance can help with medical costs, which include:

Deductibles and co-pays, Prescription medicines, Upgraded medical facilities, Alternative treatment options

Critical illness insurance can also help with non-medical expenses like:

Replace lost income for self or spouse, Homecare / home modification, Debt repayments, Travel and transportation costs, and  child care while you recover

Is it worth it to purchase critical illness insurance?

Critical illness insurance provides a different type of financial security compared to other insurance plans like term life or whole life insurance.

If you worry about your quality of life after a health scare, how sickness may affect your family’s financial stability, or having to work through common illnesses - which could delay or hamper your recovery - then a critical illness insurance plan is worth it.

Critical illness insurance policies cover a wide range of circumstances. The coverage can start from as low as $10,000 and may go up to as much as $2.5 million.

In Canada, the average life expectancy is 83 years. In Alberta, it is roughly 80-81 years. Healthcare is free in Canada & Alberta and is considered some of the best in the world. Despite this, one can not deny the financial toll that lengthy treatment takes.

Recovering from a life-threatening diseases involves extended care – usually having multiple hospital visits beyond the initial hospital stay. Critical illness insurance policies can alleviate some of the financial burdens for recovery, so you can focus on getting healthy, and not worrying about receding income or additional expenses. 

 What does critical illness insurance cover?

Critical illness insurance can cover a long list of life-threatening diseases and medical conditions.

The number of conditions covered under the insurance policy may start from one specific condition and go up to more than 25. Some policies allow a zero-day survival period, while most critical illness insurance coverage policies require a 30 day minimum survival period. Policies may cover a 10-year term or even last for a lifetime.

The number of covered conditions varies from company to company. So if you’re looking to cover a specific illness, it’s worth exploring products from Private Lane Advisory. Some of the most common covered conditions include brain tumours, blindness, cancer, coronary artery bypass surgery, deafness, dementia, heart attacks, kidney failure, loss of limbs, other organ failures, multiple sclerosis, but can include more. 

When should I buy critical illness insurance?

If you don’t have it already, then NOW is the best time to buy critical illness insurance policy.

Like other forms of insurance, critical illness insurance is less expensive when you are young and healthy.

Critical illness plans get more expensive as you grow older. You are at a higher risk of sudden illness such as heart attack, stroke, or even cancer.

Critical illness insurance comes in terms, similar to term life insurance policies, and can cover you up to the age of 75. When you purchase a critical illness policy, you lock in your rate for the rest of that term.

How much critical illness insurance do you need?

There are many personal variables that go into determining how much critical illness insurance coverage you should buy. This can  include how much of your income you may need to replace, healthcare and home modification expenses, plus anything else that comes up during your road to recovery.

To determine how much insurance you may need, Private Lane Advisory will take a look at your current expenses—your mortgage payments, car payments, potential out-of-pocket medical expenses, travel costs, etc. The Advisor will go through if you can afford to cover that in the short term, and determine if critical illness insurance may or may not be worth it for you. Most Albertans have not saved enough to cover these costs without steady employment — and most critical illnesses will force you to stop working.  

Private Lane Advisory considers the different variables that go into determining critical illness coverage needs. Contact Private Lane today to find out more about Critical Illness insurance policies.
 

No Pressure. No Confusing Jargon. Just Expert Advice and Real Protection When It Matters Most.

Critical Illness Insurance Policies - Get The Right Insurance Coverage For You

Whether you think you need Critical Illness Insurance now or later, Private Lane Advisory makes it easy to get the right insurance coverage for you - FAST. 

Let Private Lane Advisory compare top plans from Canada's leading insurers and help you find the protection that fits you and your lifestyle. 

Start with a free, no-obligation quote today.

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Call Private Lane Advisory: 587-416-5775

Your Life is Critical and an Unexpected Illness can Seriously Harm You Financially - Protect It with Expert Advice and Trusted Coverage