If you are diagnosed with a critical illness, the main thing you should do is focus on recovery. The impact of a critical illness can stress you out physically, emotionally, and financially. With critical illness insurance, you can reduce your financial burden and receive valuable support for your recovery.
Applicant’s Information
Critical illness insurance provides you with a lump sum of financial support following a tragic medical diagnosis. Suppose you’re unable to work due to a sudden heart attack, stroke, or cancer diagnosis. In that case, critical illness offers immediate financial relief.
Critical illness insurance helps you pay for costs beyond and outside of your disability, health, or life insurance plans. It can pay for expenses such as assistive modifications to your home (e.g. ramps, handrails, or grab bars), travel to and from treatment, or even home care costs.
Critical illness insurance can be a low-cost way of buying peace of mind knowing you have coverage should a sudden critical illness arise. If you’re unable to work and don’t have long-term disability insurance, a critical illness insurance policy is worth it. Especially if you don’t have an emergency fund of 3 – 6 months of salary. While we have excellent health care in Canada, it doesn’t cover all the potential costs associated with a critical illness.
If you’re self-employed, having critical illness insurance is not only recommended; in our eyes, it’s essential.
A critical illness insurance payout is typically not taxable, meaning you don’t owe income tax on the benefit. It is a lump sum benefit to use at your discretion.
Depending on your policy, a critical illness waiting period typically follows a 30-day survival period. Still, it can be as long as 90 days depending on the illness you contract.
There are online calculators to help you. But it’s as easy as adding up any lost income, mortgage or rent payments, any debts, home modifications, domestic help, and other miscellaneous items such as the cost of transportation to treatments, hospital parking etc.
Again, most people choose an amount between $50,000 and $100,000. Still, much will depend on how much money you make, your monthly expenses, and recovery expenses.
While it depends on your insurer, here are some of the most commonly recognized critical illnesses in the insurance industry.
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