Critical Illness Insurance, and Why You Need It

Life is unexpected, and if a big health emergency, such as, cancer, heart attack, or stroke were to happen, chances are you’ll need to take time off work to focus on your treatment and recovery. You’ll need to replace your income, and also require additional funds to cover other medical costs, such as prescriptions, treatments, transportation, home care, or modification to your home and vehicle. In cases when a health emergency strikes, critical illness insurance can help you cover all these expenses, and other financial needs until you are well enough to return to work. 

How does it work? 

Critical illness insurance is a form of health insurance that provides you with a lump-sum tax-free benefit if you become diagnosed with an illness during the coverage period (usually 10 years). It can be used to pay for costs not covered by our health care, such as  transportation, child care, etc. 

Typical illnesses and diseases covered by a critical illness insurance may include; 

  • Cancer 
  • Heart attack 
  • Stroke
  • Major organ transplants
  • Kidney failure

A critical illness policy will specify the details including the conditions that are covered, and how long you must be sick before you can make a claim, and the amount of coverage you will receive. Just like life insurance, you’ll have to pay a regular premium over the duration of  your term to keep the policy in effect. Most critical illness insurance policies will let you renew your coverage when your term expires, but will come with an increase in premiums. 

Is critical illness insurance right for you?

You may want to consider these questions if you are on the fence about purchasing critical illness insurance coverage. Will you still be able to meet your retirement or other financial goals if you have to pay medical expenses? Can you afford the loss of income? Is anyone depending on you financially? 

How much  coverage do I need?

Critical illness insurance pays a living benefit intended to cover you for a shorter period of time. How much coverage you need will vary depending on your financial situation, your treatment and recovery time. 

If you’re unsure how much coverage you need, speak with an advisor today to learn more about best coverage for you. 

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