Based on recent statistics, Canadians are 10 times more likely to be unable to work because of a [intlink id=”272″ type=”post”]critical illness[/intlink] than to die before the age of 65. In fact, most people are affected by a critical illness in the prime of their working lives. 1 in 2 heart attack victims is under the age of 65. Cancer diagnosis in Canada has increased dramatically, with experts indicating that a new case of cancer is diagnosed every 4 minutes.
The good news in all the grim statistical information is that medical advances in recent years have helped increase the odds of survival after being diagnosed with a critical illness. The down side is however that while many patients survive physically, the financial outcome is usually unbearable.
So what conditions are considered [intlink id=”272″ type=”post”]critical illnesses[/intlink]? Well, pretty much every critical illness policy will cover the big four critical illnesses which are, heart attack, cancer, stroke and coronary artery by-pass surgery. Many policies will then have between 20 and 30 additional conditions that may include Alzheimer’s disease, blindness, deafness, kidney failure, major organ transplant, multiple sclerosis, HIV/AIDS contracted by blood transfusion or during an operation, Parkinson’s disease, paralysis of limb and some other terminal illnesses.
In terms of functionality, some experts would classify a critical illness policy as a hybrid life policy. It falls somewhere in between a disability policy and a life insurance policy. As with a disability policy, the benefit is paid directly to the insured. In the case of a life policy, generally speaking, any benefit is paid to the beneficiary and not the insured. The biggest and most obvious difference a critical illness policy has when compared to a life policy is that you don’t have to die to receive the benefit. Many people are paid out lump sum benefits and go on to live a fairly long and generally healthy life. It is also important to note that some critical illness policies provide for a refund of premiums if the policy is cancelled by the owner or reaches the expiry date without the insured making a claim.
Although critical illness is an important element of a truly sound financial management plan, it should never be used as a solitary replacement for life insurance. It is a certainty that we will all die at some point, therefore in the pyramid of importance a life insurance policy should be purchased first if a choice must be made between the two. After purchasing adequate life insurance coverage, critical illness should be added as it gives the insured the ability to receive support while critically ill.
For more insurance or questions on critical illness insurance, call me directly at 647-233-5233.