What is critical illness insurance? Critical illness insurance is a type of health insurance. This insurance provides you with a tax-free lump sum payment if you become seriously ill.

Even though Canada’s health insurance is significantly better than in other countries, it still doesn’t cover some medical conditions and diseases. You’ll probably get free check-ups, but prescription drugs and surgeries will be paid solely by you. Disease, illness and death are subjects no one want to talk about, but unfortunately – we must.

Investing in an insurance policy such as critical illness significantly reduces worries in difficult situations. Most complicated medical treatments are really expensive and without any additional help, you might end up in deep debt, not being able to truly recover and move on. This policy isn’t that expensive too as the monthly cost start from $6.

What does Critical Illness Insurance Cover?

Each insurance policy covers different things. Before you choose the right one for you, consult with the insurance company and explain in detail medical conditions which you are most vulnerable to. Despite differences in coverage, most critical illness insurances pay lump sums for heart attacks, stroke, multiple sclerosis, kidney failure, major organ transplant, paralysis and coronary artery bypass. If you are concerned about other conditions like Alzheimer or blindness, you can choose an appropriate policy which covers them as well.

What are the Requirements?

Usually, insurance policies require a health check-up, to see your present medical risks conditions. For instance, if you are a smoker you will have higher monthly payments for your policy. Other factors are age, ethnicity, sex, occupation and family history. This is why when you decide on which policy to buy, you should look at the medical conditions commonly found in your family tree. Also, you should be realistic about your health and budget. Instead of doing calculations yourself, consult with experts who’ll give you objective, smart suggestions.

How does it Work?

Critical illness insurance doesn’t involve financial advisors looking at your bills and giving strict payments that are only meant for treatment. No, quite the opposite! If you get diagnosed with a serious illness (covered by the policy), the insurance company will give you an appropriate tax-free lump sum which only you decide how to spend. So in some cases, the whole policy will cover surgery, a mortgage, taking days off work because of recovery and even a vacation.

When to Get it?

Because they have less risk of developing a serious illness, critical illness coverage is cheapest for young and healthy individuals. As you get older, insurance companies will offer more expensive policies. So, if you have a family history of serious medical conditions, it may be wise to buy the premiums as soon as possible. But, try to do this when you are in your early 30s. This way you’ll get approval for higher payments since you’ll probably have a more established credit score and higher income.

Important Statistics

Most of us think that we will live forever in perfect health. But, life shows us otherwise since people’s organisms are vulnerable and can easily get sick. To get a better understanding of this, we present some recent statistics done by Canadian cancer and heart and stroke society:

  • 1 in every 2.5 women and 1 in every 2.2 men will develop cancer
  • 1 in every 9 women will have breast cancer
  • Every 4 minutes someone gets a cancer diagnosis in Canada
  • The number of cancer cases will double in the next 20 years.
  • In Canada, 1 in every 4 people will develop a form of heart disease
  • In Canada, 1 in 11 men and 1 in 18 women will have lung cancer
  • Annually, 75 000 people in Canada have a heart attack