The inevitably of having a critical illness increases as we age. In fact, more Canadians are being diagnosed in their 20’s and 30’s with critical illnesses such as stroke and cancer. The diagnosis of a critical illness can be distressing for both you and your family and devastating personally, professionally and financially if you’re not prepared. Having critical illness insurance can help you circumvent undue financial hardship and stress.

What is Critical Illness Insurance?

Critical Illness insurance helps you rest easier by paying you a tax-free, lump sum payment following a survival period of 30 days after diagnosis of one of 25 different life-altering illnesses such as cancer, heart attack, stroke, Alzheimer’s and Parkinson’s. The range of illnesses covered however is determined and set by the insurance plan you purchase.

Disability insurance differs from critical illness insurance. It replaces a portion of your earnings if an accident or illness causes you to become unable to work or earn an income after a waiting period has passed.

How Critical Illness Insurance Works

If your CI policy has a coverage of $30,000, you would receive a lump sum and tax-free payout of $30,000 when diagnosed with qualifying conditions. You can use this tax-free lump sum payment as you see fit for whatever you need, from paying your mortgage, to covering home-support care, to paying for additional medical and healthcare costs often associated with having a critical illness. Or even an impromptu vacation. The choice is yours.

Benefits of Critical Illness Insurance

Recovery from a critical illness can take months or even years, requiring an extended leave from the workplace, which can affect your finances and standard of living. Government plans may not sufficiently cover all the costs of living with a critical illness. Many Canadians suffering from critical illnesses are forced to deplete their personal savings and investments to get by and live independently for as long as they can.

Critical illness insurance protects you while you’re still living. That’s why it’s known as a living benefit. Having critical illness insurance will provide you with a sense of financial security and peace of mind, so you can focus on your recovery rather than worry how you’re going to manage expenses.

Critical Illness insurance is a solution if you’re…

  • Self-employed, a small business owner, or an employee without a group insurance plan and need to protect your income.
  • Have a government plan that covers basic costs and not extended healthcare needs.
  • A single-parent with dependent children living off one income.
  • Pay a mortgage and don’t want to invest in mortgage insurance.

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