Why Invest in Critical Illness Insurance

The financial consequences of a serious illness are often worse than those of death. In addition, the chances of a critical illness attack on any of us are much higher than those of death, at least before retirement age. Critical illness coverage/insurance is a long-term insurance policy where you’ll get a  ‘lump sum’ of money tax free. Think of it as a one-off payment if you’re diagnosed with one of the serious illnesses covered by your insurance policy. Let’s face it, in these high stress times, it is more often that someone is diagnosed with heart attack, stroke, end stage renal failure, major organ transplant, or a total loss of hearing or sight.

If you think about which friend or family member that has recently been diagnosed it is always surprising and these are the kinds of surprises people don’t like. But it happens, daily. CI coverage is designed to pay off your mortgage, debts, or pay for alterations to your home such as wheelchair access should you need it, because when you are diagnosed with a critical illness and need time off from work for treatments your employer will not be paying you for time off.  As well, the medication and treatments that are not covered by your health plan can be very costly. Again, the money you get from a critical illness policy can be used to pay off a mortgage or rent, to pay for medical bills, on going bills or for anything else.


When might you need critical illness cover?

Never rely on benefits from the provincial government to support you if you become critically ill – these are always less than you think. Trust me, my mother soon found out the hard way when she was diagnosed with cancer and opted out of disability insurance and critical illness insurance. She lost her job, so she had no income. Not all of her treatments were covered by Alberta Health Care and she didn’t have benefits from work, and even if she did she wasn’t working so those benefits would not apply to her if she is no longer at the company. Guess who ended up taking care of her rent, medical bills, groceries, income for her? You got it; me. My mother opted out of insurance even though I said I would pay for her premiums she didn’t want to do the health exam and then a couple years later she was diagnosed with nasal pharynx cancer. And now being 64 her premiums are well into the hundreds per month. If you are young and healthy now is the time to get insurance on your life. The longer you wait, the more expensive it will be and if your health starts to go then you may not be qualified for insurance.

Critical illness coverage could be a good choice for you if:

  • you do not have savings to tide you over if you were seriously ill
  • you do not have a good employee benefits package to cover a period of time off work due to sickness
  • your high-risk profession prevents qualification for traditional disability coverage
  • you have a high medical deductible
  • you don’t have health insurance
  • you are a parent
  • you are self employed
  • you are a homemaker

Some people think they are well protected because they have life insurance and some disability insurance. They are probably wrong. Critical Illness coverage is not a substitute of life insurance or disability insurance; rather it fills the gaps left by that coverage. You need it not because you may die soon, but because you are going to live.

Why would anyone need critical illness insurance benefits? Below are examples of what a small monthly investment of less than $15/month* do:

  • Cash to pay your mortgage while you are recovering.
  • Cash to pay for medical treatments that are not covered by your health plan.
  • Cash to pay bills – from car payments to insurance premiums.
  • Cash so you can travel for treatments not available locally (taxi rides are not covered).
  • Cash to pay for experimental treatments (not covered).
  • Cash to replace a spouse’s income while caring for the insured.

Whether the insured recovers from the disease or not and whether the insured is able to go back to work or not, have no effect on the payout of the benefit. I know you’ll find a way to put the cash to good use. Message me for your free critical illness quote. CI policies start as low as less than $5/month. The critical illness benefit works very similar to the lump sum cancer programs and pays a cash benefit to you upon diagnosis of a critical illness. The benefits range from $10,000, $25,000 or a $50,000 benefit. If you are in Canada, please email me at rinachong@live.com.

*Pricing depends on how much money you would like to receive.

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