Critical Illness Insurance- Who Needs It and Should You Get It?

Posted on November 9, 2018

You know that getting diagnosed with a serious illness will change your life in a variety of different ways.

Your appearance, the foods you eat, your comfort level, and much more will all experience a major shift.

But one thing you're especially concerned about?

How critical illnesses could impact your finances. That's why, even if you're healthy now, you may be considering getting critical illness insurance. You want to make sure that, if you fall seriously ill, you can financially as well as physically recover.

But what exactly is this type of insurance, and is it right for you?

Keep on reading this post to find out.

What Is Critical Illness Insurance?

Before we discuss anything else, let's make sure you understand what critical illness coverage is.

In Canada alone, over 206,000 new cases of cancer are diagnosed every year. In addition to the physical pain, treatment plans, and emotional suffering associated with cancer and other long-term, serious illnesses?

We know that you're also concerned about how you're going to pay for your treatments. This is especially true if your illness has left you unable to work for long periods of time.

In addition to helping you to cover the costs of cancer, critical illness insurance also assists with expenses related to a variety of life-altering or life-threatening illnesses and diseases.

Often, these include things like a stroke, a heart attack, a bypass, or even an organ transplant.

If you're able to live through the waiting period of a critical illness policy, you will get a lump sum cash payment -- not a reimbursement.

This means that, unlike with other health care plans, you're able to choose where and how to spend the money.

For example, you could use the lump sum to pay down your debt, replace your lost income, or even hire an in-home care worker to take some of the stress off of your family.

In some cases, you may decide that you want to use the money to pay for newer medical treatments that your standard health insurance plan doesn't cover.

Remember that, if you pass away, the money associated with a critical care insurance plan doesn't go to your family (as it would with a more traditional life insurance policy.)

So, is critical illness coverage right for your?

Let's take a look at why or why not now.

Who Needs Critical Illness Insurance?

Now that you have a better understanding of what critical care insurance is, let's help you to understand if it's a good move for you.

In general, it's always a good idea to have coverage that can help you to prepare for the worst.

It's especially smart if you're single, and therefore likely wouldn't be able to rely on anyone else's income to assist you if you fell ill. However, you may also find that, because you don't have any dependents that count on your income, there's no real need for you to get the insurance.

The truth is that it often comes down to your income level and your personal preferences.

Many potential policyholders also consider the monthly premium costs of critical care insurance. For example, if you're not making a high salary, the idea of paying for protecting against an illness you don't even have at the moment may not seem worthwhile.

Of course, it will also come down to the type of plan that appeals to you.

For example, you may want a critical illness plan that will cover you for an extended period of time. In other cases, you may look for a policy that will cover as many different illnesses as possible. You may decide that a plan that provides a high number of potential assistance services is the best choice for you.

When it comes to premium payments, you'll often be able to choose between a term renewable option, where your premiums change every few years, or level premiums.

This is why it's so important to compare several different plans and decide if the costs are worth it.

Am I Eligible for Critical Care Insurance?

Last but not least, you need to make sure that you're actually eligible to apply for critical illness coverage.

In most cases, you'll need to be between the ages of 18-65, as well as a Canadian citizen. If you're not yet a Canadian citizen, you'll need to be a permanent resident or a landed immigrant who has been in Canada for a minimum of one year.

In some cases, you may not be eligible to apply for critical care insurance because you've been diagnosed with certain medical conditions. In some cases, issues like colon polyps and specific types of skin cancer may mean that you're ineligible for coverage.

If you want to be sure you're eligible, the best thing to do is familiarize yourself with the specifics of each potential policy.

Are You Interested in Getting Critical Illness Insurance?

If you're interested in coverage for a variety of critical illnesses, then this type of policy may be a good fit for you.

Of course, the most important thing to remember is that you'll need to study up on the different providers and plan types in order to find the one that works for you.

Things like premiums, the potential lump sum payment amount, the waiting period, and more will all influence your decision.

Looking for more advice about critical illness insurance? Want to explore other kinds of health and life insurance policies?

Be sure to keep checking back with us to find the perfect plan.

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