Critical illness is a stressful event for an individual and can disturb your financial balance manifold. Critical Illness Insurance can help you pay-off such financial overheads in life-altering illness. If you are insured under Critical Illness Insurance and the policy covers for the associated illness, you receive a lump-sum amount in cash to pay for the expenses. It can also be claimed under the circumstances where you have already paid for the expenses, the amount hence received can be used to recover the loss of income. Critical Illness covers for a variety of illnesses and accidents like: Heart Attacks, Strokes, Cancer, physical disabilities, Alzheimer’s disease, etc.

What Does It Cover for?

Critical Illness Insurance also covers the cost if you have to travel out of the country for treatment. Statistics say it all; anyone can face such life-changing event. According to statistics, on an average over 70,000 Canadians go through heart attacks and between 40,000 to 50,000 strokes every year. Also over 3000 people are diagnosed with cancer every week in Canada. These are some shocking statistics and hence critical illness insurance is recommended to all.

What types of illnesses are covered?

While you choose a policy you should know the various diseases it covers for. Typically four kinds of diseases are covered in most of Critical Illness Insurance products:

  • Cancer

  • Heart Attack

  • Strokesand Coronary Heart Bypass Surgery

Coronary Heart Bypass Surgery

There are various other diseases covered under the Critical Illness insurance but it depends on the policy you purchase. Other diseases that can be treated under critical illness are:

Alzheimer’s disease

Loss of independent existence

Multiple Sclerosis

Kidney failure

Blindness

Benign brain tumor

Paralysis

Deafness

Coma

Parkinson’s disease

Severe Burns

Heart valve replacement

Organ failure/transplant

Loss of Speech

Aortic surgery

Motor Neuron

Loss of Limbs

Aplastic Anemia

Bacterial Meningitis

Occupational HIV Infection

Type of Policies under Critical Illness Insurance

Term based Policies

You can buy a policy for a term as per your needs. Various term options available are Term 10, Term 20, Term 65, Term 75 and Term 100. Mostly you get coverage till the age of 75 at max.

Return of Premiums

You also have an option to add Return of Premiums (ROP) option to your policy. If you claim all the premiums paid towards the policy, the coverage ends. If you go for a partial refund then the insured amount automatically reduces in accordance with the amount you claim. It is however advisable to seek the help of professional advisor at the time of buying the policy. ROP is mostly available for Term 65 and above only.

Special Cases

No Claim made: Some companies pay back the premiums paid towards the policy in an event when the insured individual dies within the waiting period, due to a cause not covered by the policy. The amount is paid to the nominated beneficiary in the contract. In some products, the company pays back a portion of premium if the insurance in unclaimed till its maturity.

Full Recovery

You get a full coverage as long as you fulfill the waiting period mentioned in the policy. Even if the policy holder recovers fully, still he/she will get the entitled coverage in the policy.

Advantages of Critical Life Insurance

Immediate Cash Payoff

The most obvious benefit is the immediate payout. Within 30days of diagnosis with a critical illness, insurance company will pay you a lump-sum amount which is tax free.

Reduce financial Burden

This Relieves you from financial obligations and helps concentrate on your recovery. The amount received can be used for- Pay medical bills, International medical treatments, Meeting day to day life expenses , Paying off mortgage, etc.

Independence Guarantee

While recovering from the illness you can maintain your house and property. You can also pay for domestic help during the recovery as well as fund a leave for your spouse.

Better medical services

You would be able to afford cutting-edge medical services which are otherwise not covered by provincial health insurance.