Critical Illness Insurance

An ad for Critical Illness Insurance asks the question, "What if you had a heart attack and survived?" Good question, considering you may be physically able to go back to work - with the same hours that caused the heart attack in the first place. What if you wanted a lifestyle change? Could you afford it?

What if you needed extended treatment? Could your spouse afford to take time off work? Could you pay for non-insured medical treatment outside Canada (due to waitlists in Canada)?

Illness brings its own set of financial problems and those who are ill certainly do not need the additional stress of reduced income and increased expenses. Compounding this may be delays in certain types of tests or treatment, and the frustration of knowing that across the border in Seattle, the test or treatment could be done without delay.

This is where Critical Illness Insurance can literally be a lifesaver: paying a lump sum payment of up to $2,000,000 after diagnosis is confirmed. It is up to you how you use the money. Many people insure their mortgages or their spouse's income (if you were sick and able to receive disability benefits, the Critical Illness benefit could pay for your spouse to take time off work to support you during recovery). There is no right or wrong amount of coverage - it is meant to be used for whatever you deem necessary at the time. Of course, this makes determining a coverage amount difficult but the premium cost will also dictate how much you can afford. It is generally wise to get as much coverage as you can 1) afford and 2) feel would be the minimum needed in the event of a critical illness.

This type of insurance was introduced to Canada in the early 1990s and has grown in popularity since. It is important when applying for one of these policies that there is a complete understanding of the circumstances under which the policy pays out and when. Below are some of the conditions that will qualify for a lump sum payment:

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