FAQ Critical Illness

Critical illness insurance, also known as dread disease policy or critical illness cover is an insurance service in which insurance policyholder is provided with complete fix payment in case, he/she is diagnosed with one of the particular diseases listed within the insurance policy.

Critical illness assurance will play a significant role in shielding and maintaining your financial and physical health. It will lessen the financial strain of paying for the costly medical treatment of the illness. Moreover, it will make sure that your family can maintain good life quality during your critical illness period.

Commonly a critical illness insurance plan pays for the following medical conditions:CancerHeart attackStrokeKidney failureComaBlindnessDeafnessParalysisSevere burnsAlzheimer s diseaseParkinson’s disease

Most plans cover the "big three": cancer, heart attack and stroke. Broader plans cover 25 or more conditions, such as kidney failure, major organ transplant, multiple sclerosis, Parkinson's disease, paralysis, blindness and coronary artery bypass surgery. Definitions differ by insurer, so compare what is covered, not just the price.

There is a huge difference between life insurance and critical illness insurance. Term or permanent life insurance is a benefit that will be paid to your family and beneficiaries after your death. On the other hand, in critical illness insurance, you will be the one to receive reimbursements for critical illness, not your family or beneficiaries. Furthermore, illness does not need to be terminal to collect benefits.

Your public health insurance policy only covers the basic and specific medical expenses. Conversely, critical illness insurance will help you pay for extraordinary and costly medical expenditures. Moreover, critical illness insurance provides you the independence of using the money for both medical and non-medical objectives.

A common guideline is enough to cover 1 to 2 years of income, or about $25,000 to $100,000 or more, depending on your savings, debts, and whether you have disability insurance. Think about lost income, treatment and travel costs, and time off for a family member.

The price depends on your age, coverage amount, smoking status, health, term length and the number of illnesses covered, and every insurer sets its own price. Younger, healthy non-smokers pay the least. Get a personal quote to see your real price; we compare plans from 20+ insurers.

Term critical illness (for example 10 or 20 years, or to age 65 or 75) costs less and suits people who mainly need protection during their working and mortgage years. Permanent critical illness lasts for life with level premiums, so it costs more but protects you as you age. Many policies can be converted from term to permanent without new medical questions.

Most critical illness policies require you to survive a set period after diagnosis, usually 30 days, before the lump sum is paid. The exact period and definitions vary by insurer and illness.

Return of premium is an optional rider that refunds some or all of the premiums you paid if you never make a claim, or if you cancel after a set number of years. It increases the cost but can make the policy feel like a savings plan if you stay healthy.

Often yes. Insurers may still offer coverage but exclude the pre-existing condition, charge a higher premium, or offer a simplified-issue plan with fewer illnesses covered. Answer the health questions honestly so the policy holds up when you need it. We compare insurers to find the best option for your health history.

Yes. Child critical illness plans cover childhood illnesses such as cancer, type 1 diabetes and some congenital conditions. They are usually affordable and can often be converted to adult coverage later without new medical questions.

Yes, and many people do. Critical illness insurance pays a one-time tax-free lump sum if you are diagnosed with a covered illness. Disability insurance pays a monthly income if illness or injury stops you from working. Together they protect your savings and your income. Check your disability policy to see whether it reduces benefits because of other coverage.

Disability and Critical illness insurances are two entirely different insurance plans having different prerequisites and benefits. They are not related to each other. Therefore, critical illness insurance benefits will not affect disability insurance reimbursements.

No. For personally owned policies, the critical illness lump-sum benefit is paid tax-free in Canada, and you can use it any way you choose, such as replacing income, paying the mortgage or covering treatment costs.

Claims are handled directly by your insurance company. Contact the claims department listed on your policy to get the claim forms. Submission deadlines vary by insurer, so check your policy and contact the insurer as soon as possible after a diagnosis.