Basic Policy Time Frames
Options and Riders
Who gets a Critical Illness?
What conditions are covered in a Critical Illness Policy?
Critical Illness Coverage needs estimation
Critical illness insurance is a form of health insurance that provides a lump-sum payment in 30 days after the diagnosis of a covered illness. Critical illness insurance is a relatively new form of protection that provides money while you are still alive. It has tremendous flexibility if you become critically ill because there are no requirements for how you spend the lump-sum benefit that you receive. There are a wide range of Canadian insurance companies who offer a critical illness policy. The terms and conditions will vary from company to company.
Basic Policy Time Frames:
- 10 or 20 Year Renewable Term - similar to ten/twenty year renewable term life insurance. Rates are guaranteed in the policy but they do go up every ten/twenty years until the policy ends at age 65, 70 or 75. Those types of insurance provide affordable, short term coverage.
- Level to Age 65,70,75 - The policy lasts to the age given and the premiums remain the same throughout this time period. Clearly the greatest likelihood of claim is between age 65 and 75 so the longer term policies will cost a little more but could be worth the extra cost. This is an important area. Suitable for the long term and retirement protection.
- Permanent or To Age 100 - These ones are designed to last a life time so the chances of collecting are high as so is the premium. While this has some uses, if money is short, one should look at getting the coverage to age 75. Designed for business owners, medium and high income individuals and corporate executive coverage.
Options and Riders:
- Return of Premium: Upon death, most policies will return all premiums to your beneficiary as part of the policy.
- Pay Back of Premium Rider: Many policies offer this option on the policies that have a level premium to age 65, 70 or 75. For an extra premium, if you do not have a claim, you will get all your premiums back at the policy ending age 65, 70 or 75, depending on the insurance company and policy purchased.
- Children's Rider: Coverage is offered to children ages 2-17 and, in some cases for children that you have in the future starting at birth. It will pay a lump sum, usually $25,000 on the diagnosis of a critical illness and the one premium frequently covers all children in the family.
Who gets a Critical Illness?
1 in 3 Canadians get Cancer
1 in 4 Canadians get Heart Disease
50,000 stroke victims each year
What conditions are covered in a Critical Illness Policy?
- Alzheimer's Disease
- Aortic Surgery
- Bacterial Meningitis
- Baloon Angioplasty
- Benign Brain Tumour
- Blindness
- Breast Cancer
- Coma
- Coronary Artery Bypass
- Deafness
- Heart Attack
- Heart Valve Replacement
- HIV assault with needle
- HIV through blood transfusion
- HIV medical profession
- Life-Threatening Cancer
- Kidney Failure
- Loss of Independent Existence
- Loss of Limbs
- Loss of Speech
- Loss of Hearing
- Major Organ Transplant
- Motor Neuron Disease
- Multiple Sclerosis
- Occupational HIV Infection
- Paralysis/Paraplegia
- Parkinson's Disease
- Prostate Cancer
- Severe Burns
- Stroke
Critical Illness Coverage needs estimation:
Although Canada’s health care system does ensure universal access, sometimes there can be a significant waiting period for treatment. If your medical condition demands urgent treatment, you may have to go where you can get the treatment you need in a timely fashion. However, such treatment may carry a hefty price tag*:
• Heart transplant with a stay of two to four weeks: $240,000 - $360,000
• Kidney transplant with a stay of between five and eight days: $142,000 - $172,000
• Coronary artery bypass (depending on severity): $67,000 - $97,500
• Six-week course of radiation therapy for cancer: $40,000
Those aren’t isolated examples. It’s also estimated that in the U.S., the cost of breast cancer surgery and first-year post-operative care is around $36,700, while the cost of prostate cancer surgery and care is approximately $32,000.* Of course, none of this includes the cost of getting there and back (you may require special arrangements, such as an air ambulance). You may also have to pay for the travel arrangements and accommodations of a loved one accompanying you.
With Critical Illness Insurance, however, you can use the lump-sum benefit to pay for urgently-needed medical treatment for which you may otherwise have had to wait for in Canada, plus all related costs.
* All amounts based on various insurance industry sources and are quoted in Canadian dollars.
For more information - Contact us.
