Why You Need Critical Illness Insurance

Critical illness insurance is often overlooked when individuals as well as families consider insurance protection.

CI as it is commonly referred to is increasingly important because serious health illnesses are more common these days, very expensive and can disrupt families’ lives and finances.

So, what is CI? CI is a type of insurance coverage which pays a tax-free lump sum if a person is diagnosed with a list of covered conditions (usually 25) like cancer, heart attack and stroke.

The benefit is paid thirty (30) days after surviving one of the covered conditions. More details are available in the specific insurance contract. This lump sum payment can assist with ongoing treatment, or it can be used for treatment that may not be available or covered in your province / country.

As our population ages, the Canadian Institute for Health Information (CIHI) * is forecasting that Health care spending in Canada is projected to reach over $372 billion in coming years. Even with our public as well as private health care plans, many costs – drugs, travel for treatment, home care, lost income – do fall on individual and families and can run into tens of thousands of dollars.

A major illness often means time off work or reduced hours, putting your paycheques at risk when expense spike. A lump sum from a CI policy can maintain your mortgage payments, rent, groceries, line of credit payments, childcare … so that your lifestyle and long-term plans remain on track while you recover.

CI provides maximum flexibility in that unlike traditional health care insurance that reimburses specific medical expenses, CI benefits can be used for anything you decide: private treatment, experimental drugs, home modifications, hiring in-home help. This flexibility gives families more control over where and how they receive care, including the option to travel internationally for specialized treatment.

Serious conditions like cancer, heart disease, and stroke are common enough that many insurers report a high proportion of CI policies payout benefits. Knowing that there is a dedicated pool of money available if the worst happens reduces financial stress, allowing individuals / families to focus on recovery instead of worrying on bills.

So speak to your financial advisor today to see how CI can be incorporated into your wealth plan, or get a free quote through our partnership with Manulife Insurance.

Written by: Leric Bishop CFP

*Source: The Canadian Institute for Health Information (CIHI)