Critical illness insurance is an insurance product that pays out a large amount of money on one occasion when the policy holder gets any of the sicknesses or conditions covered in the contract. Most companies cover heart disease, stroke, organ transplants, paralysis, multiple sclerosis, Alzheimer’s, cancer, kidney failure and loss of hearing, sight and speech.
The risk of getting inflicted with a severe sickness has been on the increase. In 2004 statistics from the Heart and Stroke Foundation, Multiple Sclerosis Society of Canada and Canadian Cancer Statistics show the following:
- One in two men and one in three women may develop heart disease in their lifetime
- 40,000 to 50,000 strokes are recorded each year
- One in 2.4 men and one in 2.7 women residing in Canada develops cancer
- One in nine women develop breast cancer
- One in 11 men and one in 18 women develop lung cancer
- It is estimated that 2,798 Canadians are diagnosed with cancer each week
- It is estimated that 50,000 Canadians have Multiple Sclerosis
What these statistics prove is that critical illness insurance is a worthy undertaking as the chances of surviving such diseases have increased tremendously due to increases in technological improvements in the medicine industry. The advantages of this coverage can be summarized as follows:
- The coverage pays out a lump sum amount when you are afflicted by one of the listed critical illnesses and survive it for 30 days.
- You are not restricted to use this lump sum amount on medical bills. You can do whatever you want with it.
- The lump sum amount is tax free.
- You can focus on getting medical treatment and recuperating without the day to day financial stress as the lump sum amount can be used to cater to those expenses.
- If you are making mortgage payments and the illness renders you unable to work and earn the regular income, this lump sum can cover those payments so you don’t have to worry about losing your home.
- If your death is caused by a reason not covered by the policy, the insurance company may refund the premiums to your listed beneficiary
Consulting with an Toronto insurance advisor Jack Bendahan the Life man can aid you in finding the right plan for you. The advisor will work out your income and outstanding debts to ensure that sickness does not make you broke and homeless. A free quote will be provided that will guide you on the right path.
