Janea Bellay

What is critical illness insurance?

Critical illness insurance is a form of health insurance that provides a lump-sum payment should you become seriously ill.

What are the types of illnesses covered by critical illness insurance?

Although they differ from company to company, typical illnesses and diseases covered by critical illness insurance may include:

• cancer
• heart attack
• stroke
• blindness
• Alzheimer’s
• multiple sclerosis
• organ transplants
• kidney failure
• paralysis

Coverage can also vary according to the degree of severity of, or conditions associated with, an illness or disease. For example, if you are diagnosed with a type of cancer that is treatable and that results in minimal “down time”, you may eligible for 25% of your policy.

Coverage may have limited conditions if you have a pre-existing condition or illness.

Do I need critical illness insurance?

You should consider your personal circumstances and the added financial strain that could be brought about by dealing with a serious illness or disease. How would you pay your bills if you had to take a leave of absence because of cancer, heart attack or stroke?

Public and private health insurance plans typically do not provide coverage for day-to-day living expenses, nor do they pay for travel to and from treatments, home care and child care.

How much does it cost?

Generally, the younger and healthier you are, the lower the premium (cost). However, the cost varies depending on your age, medical condition, the amount of coverage, the number of illnesses covered by the policy, and the insurance company.

How can I make a claim?

You can make a claim if a physician, licensed to practice medicine in Canada and specializing in your particular illness, diagnoses you with a critical illness or disease covered by your policy.

If my claim is approved, when will I receive payment?

A lump-sum benefit payment will be made to you 30 days after the claim has been approved.

There are no restrictions on how you use the money.

Once your claim is paid, your critical illness insurance policy ceases.

What if I never make a claim?

If you die for a reason not covered by the critical illness policy, the premiums you paid may be refunded to your named beneficiary. Some plans will return the premium or a portion of the premiums paid during the life of the policy if the policy matures and no claim has been paid.

Some policies have added features where if you live a completely health life, you will receive 100% of your premiums paid at age 75.

What if I make a full recovery?

You are entitled to collect the entire benefit even if you make a full recovery.

Is long-term care insurance the same as critical illness insurance?

No. Long-term care insurance provides for personal care on a long-term basis if you need supervision or assistance with daily living activities due to a chronic illness, disabling condition or cognitive impairment.

Long-term care policies generally reimburse, up to a specified limit, the expenses incurred for various types of care, such as nursing home or home health care; or they pay a pre-determined benefit amount on a daily or monthly basis.

Is disability insurance the same as critical illness insurance?

No. Disability insurance, also known as “income replacement” insurance, provides a monthly income replacement benefit if you become disabled and can no longer perform the normal duties of your work. Generally, the benefit is limited to a percentage of your regular income and ceases once you earn an income or you no longer meet the definition of disability in the contract.

Unlike critical illness insurance which provides the full policy benefit in a lump sum payment on diagnosis of a critical illness, long-term disability policies may have a waiting period from the onset of disability. Unlike critical illness benefits, long-term disability benefits may be affected by other income you receive or by your full recovery from the illness.

How do I get a price quote?

If you would like a price quote on Critical Illness Insurance for you or your loved ones, send me an email at janea@janeabellay.com. Include your date of birth, gender and smoking status. Other pre-requisites apply, but we start here!