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Critical
Illness Insurance is a relatively new
form of protection that provides money while you are still alive.
Critical Illness insurance, although new to Canada, has been widely
accepted into the market in other commonwealth countries under the
name Dread Disease Insurance – probably viewed as too dramatic
of a name for us "middle of the road" Canadians.
Why do we need another type of insurance?
Maybe you have life insurance, disability insurance and group benefits
at work. Imagine that you were diagnosed with Cancer. You are still
alive so the life insurance doesn’t pay. You can still go to
work the next day so your disability insurance won’t kick in
until the Cancer is at its worst. You’re employee benefit plan
and government benefits will pay certain medical treatments –
that’s good. But what if you want to take a year off, go out
of country for treatment or try alternative treatments not covered
by health insurance? Critical Illness Insurance can fund all these.
It has tremendous flexibility if you become
critically ill from any of the inflictions mentioned below. There
are no requirements for how you spend the lump sum of money that
you receive. You don't have to get approval for expenditures. You
don't have to provide any receipts. You don't even have to spend
the money on medical expenses.
Critical Illness insurance provides you with a lump-sum payment
to be used however you see fit. If you want to try alternative therapies,
you want to be treated outside of the country, you want to hire
someone to take care of you, you want to hire a nanny to take care
of your children...you choose how to spend your money.
Critical Illness insurance covers specific illnesses only. Critical
Illness plans are designed to provide a way of protecting yourself
against the high cost of rebuilding your lifestyle following a critical
illness such as a heart attack or being diagnosed with Cancer. It
offers a lump-sum cash payment while you are living, usually just
30 days after the diagnosis and with no requirement on how you spend
the money.
Only a few insurance carriers offer Critical Illness currently.
Clarica, Manulife and Canada Life are the largest providers so far.
What is covered? Here is a list of what is typically
covered in most Canadian Policies:
- Heart Attack
- Loss of Limbs
- Major organ transplant
- Stroke
- Blindness
- Coma
- Multiple Sclerosis
- Deafness
- Severe burns
- Parkinson's Disease
- Cancer
- Paralysis
- Loss of speech
- Kidney Failure
- Heart bypass surgery
- Motor Neuron Disease (ALS)
- Alzheimer's Disease
- Occupational HIV
Who is the "best"
insurer?
That depends on your age, sex and family
history.
How much does it cost?
Like life insurance, there are term policies,
permanent policies and return of premium options that all affect
the cost.
How much does the insurance company pay
me if any of these things happen to me?
You choose the amount of the benefit.
Coverage minimums are $25,000 and the maximum that I am aware
of is $2,000,000.
If you are curious about getting a quote,
please contact me at Chisholm@queensbury.com
All contents copyright
© Joe Chisholm 2001
E-mail: chisholm@queensbury.com
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What
is typically covered