Critical Illness Insurance provides a tax-free lump-sum payment if you are diagnosed with and survive a covered critical illness. A critical illness can happen to anyone. There have even been instances where families have been forced to rely on their superannuation funds or in some cases sell their homes in order to raise the money - all because they failed to purchase the critical illness insurance.
People underestimate the need of critical illness insurance. No one plans to get sick, but when something unexpected happens, you can help yourself and your family by being financially prepared. The physical and emotional strain of a critical illness can be severe and when you combine that with the potentially damaging financial impact, the result can be devastating. The payment you receive from the insurance company helps support you financially. You decide how to spend the money you receive. You can use this payment to pay off or reduce your mortgage or other debts. You may hire domestic help during your recovery. You would have to fund a leave of absence for yourself or your spouse. You may need to modify your home or vehicle to improve your mobility. You can use the benefit you receive to pay for medications and treatment not covered by provincial health plans or to pay for private nursing or out-of-country treatment or use the benefit in other ways that can help you focus on getting well.
Most of the companies provide coverage up to 25 life threatening illnesses - • Alzheimer Disease • Loss of Independent Existence • Aortic surgery • Loss of Limbs • Aplastic Anemia • Loss of Speech • Bacterial Meningitis • Major Organ Transplant • Benign Brain Tumor • Major Organ Transplant on Waiting List • Blindness • Motor Neuron Disease • Cancer (Life-threatening) • Multiple Sclerosis • Coma • Occupational HIV • Coronary Artery Bypass Surgery • Paralysis • Deafness • Parkinson’s Disease • Heart attack • Severe Burns • Heart Valve Replacement • Stroke • Kidney failure.
Many companies provide partial/additional benefit up to certain amount for non life-threatening medical conditions: Coronary Angioplasty and/or Cancers detected in early stages: Skin Cancer, Breast Cancer or Stage A Prostate Cancer. Once a benefit is paid, the contract continues according to the same terms and conditions
There are two kinds of plans available for critical illness insurance. They are Term Plans and Permanent Plans to choose from depending upon your need and affordability. Cost varies with gender, age, smoking status, medical history and the amount of coverage you choose. Various riders are available too to upgrade the plan. One of them is the rider of Return of Premium (provided there is no claim). You will get the refund on your death or on the expiry of your plan or on completing the specified number of years of your plan. You will either get the benefit from the insurance company (if you are diagnosed with and survive a covered critical illness) or you will get back the premiums paid to the insurance company.
It’s a win-win situation for you.
