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What is Critical Illness Insurance?

Posted on April 17, 2008 at 9:38 am 
Filed Under Financial Planning, Insurance Planning, Personal Insurance

Recent reports of individuals whose medical costs were not covered through provincial or personal medical insurance plans have caused many to wonder about their financial affairs in the event of a serious illness.

Unlike traditional life insurance that pays a lump sum at the time of death, Critical Illness Insurance (CII) pays a lump sum benefit upon the diagnosis of a critical illness, such as cancer, heart attack, or a stroke. It was designed to help meet the high costs associated with serious illness, and to help you maintain your lifestyle during and after recovery. Upon diagnosis of a critical illness, there is a brief waiting period – often as little as 30 days. Once this expires, the policy pays out a lump sum cash benefit. The choice of how to use the benefit is yours, and it is tax-free.

Your Take-Away: It has been reported that 1 in 4 Canadians will be diagnosed with Cancer prior to their 65th birthday. If you happen to be one of those unlucky Canadians, the last thing you want to have to deal with as a family are the high medical costs that can be associated with getting better. Because your benefit is tax free, you can choose to use your payout in the following ways:

  1. Taking advantage of special treatments, alternative therapies or immediate surgery that may only be available in other countries such as the U.S.
  2. Modifying your home or vehicle to meet any mobility requirements as a result of the illness
  3. Allowing a spouse or family member to take a leave of absence from work
  4. Reducing overall financial stress

This product, although not new, is something that has only recently been gaining significant press in Canada.  I can say without question that this is something you and your family should be looking at in order to protect the financial future of those you care about.

Until next time, have a Terrific Thursday.

Chris

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One Response to “What is Critical Illness Insurance?”

  1. Financial Planning on The Finance World For News and Information Around The World On Finance » Blog Archive » What is Critical Illness Insurance? on April 17th, 2008 8:32 pm

    […] What is Critical Illness Insurance? Recent reports of individuals whose medical costs were not covered through provincial or personal medical insurance plans have caused many to wonder about their financial affairs in the event of a serious illness. Unlike traditional life insurance that pays a lump sum at the time of death, Critical Illness Insurance (CII) pays a lump sum benefit upon the diagnosis of a critical illness, such as cancer, heart attack, or a stroke. It was designed to help meet the high costs associated with serio […]

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