The main components are that you must survive 30 days from date of diagnosis by a qualified medical professional. The policy would then payout a lump sum of money to provide for income, medical expenses, special treatments outside Canada or any other expenses you might incur. Some policies will have second event. Once the lumps sum benefit is paid the premiums and the policy end.
The number of named illness has increased from a heart attack to now cover up to 25 or more critical illnesses. Some also have partial payouts for what they consider early diagnosis. This a list of some of the illnesses covered (policy wording should be reviewed as to what defines the diagnosis of each named illness as per the company used):
* Alzheimer’s; Aortic Surgery; Aplastic Anemia; Bacterial Meningitis.
* Benign brain tumour; Blindness; Cancer; Coma; Coronary artery by-pass surgery.
* Deafness; Heart Attack; Heart Valve Replacement; Kidney Failure; Loss of Independent existence.
* Loss of limbs; Loss of speech; Major organ failure; Major organ transplant; Motor neuron disease.
* Multiple sclerosis; Occupational HIV; Paralysis; Parkinson’s disease; Severe burns; Stroke.
If you decide to purchase one of these policies have your advisor or agent review what is and is not covered with you.
If you do not understand something be sure to ask, don’t just walk away and shrug your shoulders if you are not clear on things.
But what if you don’t get sick? Without adding a “return of premium” rider to your CI policy, your policy will act similar to a car insurance policy…..no money back if you don’t have a claim.
The “return of premium” provision or rider available on most Critical Illness contracts is an extra charge or investment in the possibility that you won’t get sick.
With Critical Illness insurance, the insurance company guarantees 100%, the return of eligible premiums at the cancellation or expiry of your contract.
My last word is this.
Another piece of advice – don’t get your financial advice from a friend, your doctor, lawyer, dentist or accountant. Many of the people I see become very confused because everyone gives their opinion on these subjects and policies without actually knowing the intricacies of the products or if they fit in your personal life.
You don’t see your dentist for your legal advice, so use the professional trained in the products to find what is best for you.John Colautti