Is insurance coverage, which will pay out a lump sum cash benefit if the insured is diagnosed with any of the major critical illnesses, or health conditions outlined in the insurance policy. (ie. stroke, cancer, kidney disease, heart attack, etc...) Once diagnosed with a critical illness, if the insured lives beyond 30 days, a lump sum tax-free benefit is paid out to the insured and monies can be used any way they choose. Most often the pursuit of the best doctors and specialists in the world to help with treatments is where the money is used.
ADVANTAGES...
- The rates for critical illness products are extremely undervalued and the insurance companies have begun to realize this. Rates are due to increase 15-20 % in year 2005 as underwriters and actuaries have realized many more claims are being processed than premiums taken in.
- You assure yourself extra money for top quality treatment (QUICKLY) anywhere worldwide as per your budget and reduce the risk of depleting all your savings in doing so. You avoid draining RRSPs and life savings to fund rehabilitation.
- If you buy a critical illness policy for coverage up to age 75, and are lucky enough not to experience any of the top 20-25 critical illnesses, you can get ALL your premiums paid back to you with a return of premium rider, and with some insurance carriers you can get up to 75% of your money back by age 65.
- If you die within 30 days of being diagnosed of a critical illness, you get ALL your premiums paid back to you, it really becomes a win-win situation.
- Business owners can protect themselves in the event a partner(s) come into a critical illness situation. Often only a buy/sell (or keyman insurance) only covers a death.
- Canada is the one of few countries in the world with guaranteed non-cancellable premiums and policies.
- You get access to the 'Best Doctors Program' which means the insurance company will do all the research and provide names of the top medical practitioners worldwide.
DISADVANTAGES...
- If you have already been exposed to one of the 20-25 critical illnesses covered by the insurance policy, you are INELIGIBLE to pursue such a policy for yourself.
- Not available to people over age 65.
Critical Illness Insurance...
 |
 |
 |
 |
 |
 |
 |
 |
 |