Critical illness insurance in Canada is crucial as it provides financial protection against severe health conditions. It offers a lump sum payout upon diagnosis, allowing policyholders to manage medical expenses, seek specialized treatment, and maintain their quality of life during challenging times.
— What is Critical Illness Insurance
Critical illness insurance in Canada is a type of insurance coverage designed to provide financial protection to individuals who are diagnosed with specified critical illnesses. It offers a lump-sum payout to the policyholder if they are diagnosed with one of the covered critical illnesses during the policy's term. This payout is made regardless of whether the individual is still able to work or has incurred medical expenses related to the illness.
- Financial Security During Serious Illness
- Flexibility in Using the Payout
- Protection for Your Loved Ones
- Complementary to Health Insurance
- Access to Better Medical Care.
- Preserve Your Savings and Retirement Funds
- Peace of Mind and Reduced Stress
Why it is necessary to have a Critical illness Insurance?
When the insured person is diagnosed with a covered critical illness, the policy pays a lump sum benefit to the insured. The amount of the payment is predetermined and specified in the policy. The insured person has the flexibility to use the lump sum as they see fit, whether it's to cover medical expenses, replace lost income, pay off debts, make necessary modifications to their living arrangements, or fund any other financial needs during the illness.
Most critical illness insurance policies have a survival period, which is a waiting period after the diagnosis of a covered illness before the benefit is paid. This period typically ranges from 30 to 90 days, depending on the policy. If the insured person passes away within the survival period, the benefit may not be payable.
Critical illness insurance policies are generally renewable and can be maintained over a specified period, such as 10 or 20 years, or until a certain age. It's important to note that critical illness insurance policies often come with exclusions, meaning they may not cover pre-existing conditions or illnesses that arise due to specific circumstances outlined in the policy. Reviewing the policy terms and conditions is essential to understanding the coverage and exclusions.
Critical illness insurance can be purchased as a standalone policy or as a rider added to a life insurance policy. Adding critical illness coverage as a rider allows individuals to have both life insurance and critical illness protection within a single policy, providing a comprehensive level of coverage.