Do I Need Critical Illness Insurance?
A common question many clients ask is whether they need critical illness insurance. To answer this question, we ask you to consider the following—how would you and your family be impacted if you were diagnosed with a serious illness that hampered your ability to work?
If your monthly paycheque is vital for paying your rent or mortgage, putting food on the table, and paying your bills, then the costs of not having critical insurance are very high. In this post, we outline everything you need to know about critical illness insurance and how it can maintain your quality of life and allow you to recover from illness during these difficult times.
What Is Critical Illness Insurance?
Critical illness insurance is a benefit that protects your income in the event that you suffer from a serious medical condition. It helps ensure that your everyday needs are met so you don’t experience a heavy financial loss due to lost income. The benefit consists of a lump sum payment that is paid directly to you if you are diagnosed with a critical illness as listed by your insurance provider.
Why Should You Purchase Critical Illness Insurance?
There are many reasons to talk with a financial advisor about purchasing a critical illness plan.
Reason #1: Be Prepared for the Unexpected
With one in three Canadians suffering from a critical illness in their lifetime, it’s best to be prepared.
Reason #2: Protect Your Retirement
If you don’t have a critical illness plan, you may have to dig into your savings or jeopardize your retirement fund. This may delay your retirement, and you may find yourself struggling with finances during your golden years.
Reason #3: Live with Less Worry
If you are diagnosed with a critical illness, you can focus on your recovery without worrying about your daily expenses.
What Can I Use My Benefit Payments for?
When you receive your benefit payment, you can use the funds as you choose. Many people use it to cover their living expenses, including mortgage payments, groceries, and bills, or you can use it to pay out-of-pocket costs for alternative treatments not covered by Alberta healthcare.
The benefit also provides the opportunity to rest so you can undergo treatment and take time to recover without the concern of mounting bills or delinquent mortgage payments.
What Illnesses Are Covered with Critical Illness Insurance?
The type of illnesses covered will vary slightly from one insurance provider to the next, but they typically include the following:
- Acquired brain injury due to external trauma
- Aortic surgery
- Aplastic anemia
- Bacterial meningitis
- Benign brain tumour
- Blindness
- Cancer
- Coma
- Coronary artery bypass surgery
- Deafness
- Dementia, including Alzheimer’s disease
- Heart attack
- Heart valve replacement or repair
- Kidney failure
- Loss of independent existence (LOIE)
- Loss of limbs
- Loss of speech
- Major organ transplant
- Major organ failure
- Motor neuron disease
- Multiple sclerosis
- Occupational HIV infection
- Paralysis
- Parkinson’s disease
- Severe burns
- Stroke
How Much Does Critical Illness Insurance Cost?
The costs for critical illness insurance vary depending on your age when you purchase the insurance, your health status, and lifestyle. The cost also depends on the amount of coverage you wish to have.
What Is the Difference Between Life Insurance and Critical Illness Insurance?
Life insurance is a death benefit that helps to keep your family financially secure if you pass away unexpectedly. Many people choose to purchase life insurance to protect the financial stability of their loved ones after they pass. But what about taking care of your family’s needs as well as your own if you become seriously ill?
Critical illness is a living benefit that helps you to cover your costs and remain financially solvent when you’re undergoing treatment and recovering from a serious illness. Both life insurance and critical illness have different purposes, so it’s ideal to have both policies.
Purchase Critical Illness Insurance in Edmonton
Critical illness insurance is an essential part of your financial planning to ensure your future financial stability and well-being in the event of a serious illness. If you would like to learn more about the costs and benefits of critical illness insurance, connect with a financial advisor in St. Albert today.
