Critical Illness

A heart attack or a stroke doesn’t have to kill you or it to change your life forever, but it’ll definitely take you a while to get back to normal.  The good news is; you will get back on your feet.  Modern medicine has drastically improved the survival rates and recovery times for heart attacks and strokes.  Critical illness policies are designed to pay out a lump sum, tax free, payment upon diagnosis of a critical illness.

So what is a Critical Illness?

Every Insurance company is different, but a typical policy will cover around 25 illnesses.  The big three are Cancer, Heart Attack, and Stroke.  Other examples would include: organ transplant, MS, Parkinson’s, ALS, severe burns, etc.

Why do I need it?

50 years ago, you may not have needed it.  The prognosis for many of these illnesses was not very good.  These days, we have the ability to treat many of these illnesses; unfortunately, that treatment is going to cost some money.  That’s where a Critical Illness policy comes in.  These policies provide cash for you to seek treatment, take a leave of absence from work, or pay for alterations to your home.  How you spend the money is entirely up to you.

What is the claim process?

In general terms, a typical policy pays out 30 days after diagnosis; provided the insured person is still alive.  It doesn’t matter if you are likely to survive your illness or not, it doesn’t matter if you are still working or not.  It doesn’t matter whether you have lots of medical bills or none at all.  All the insurance company cares about is that you were diagnosed with one of the covered illnesses and 30 days later you are still alive.  Having said that, every policy is different and that’s why most people sit down with an advisor to choose the one that is right for them.

What kinds of plans are available?

Most companies offer permanent plans that cover an individual for life, term plans are also available.  Term plans offer coverage until a specific age, and the premiums typically increase in age increments, (every 10 years for example).

What if I never have a claim?

Some plans offer Return of Premium, referred to as ROP.  On these plans if you haven’t filed a claim by a certain time, such as expiry (ROPX), or if you surrender (cancel) the policy (ROPS), or if you pass away from some other cause(ROPD); the insurance company refunds some or all of your premium.

How much does it cost?

Cost is determined by three main things:

-The Face Amount (how much you are insured for)

-Your age and gender

-The design of the plan (how many things you’d like to be covered for)

A healthy 35 year old can get into a basic plan for around $25 a month.

Give us a call.  We have answers.

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