Critical Illness Insurance Canada

Who Do You Know In Canada That Has Suffered Cancer, Heart Attack Or Stroke?

Would their situation have improved with $50,000, $100,000 or even $250,000 of tax free critical illness insurance benefits after diagnosis?

Critical Illness Insurance provides coverage for these and over 24 other MAJOR illnesses and injuries that will change your life forever.

How Much Critical Illness Insurance Do You Need?

If you live a healthy lifestyle, you have taken the best defense against a Critical Illness striking you. But by no means can anyone make themselves immune. Even with healthy living, low stress levels, and a good support system you can still develop one or more of these Critical Illnesses.

The statistics are compelling:

  • One in three Canadians will develop life threatening cancer in their lifetime
  • One in two heart attack victims is under the age of 65
  • Over 80% of people in Canada survive their first heart attack
  • There are 50,000 stroke victims in Canada each year, and 75% of them will be left with a disability

In fact, the Canadian Cancer Society released their 2012 annual statistics report on cancer, and the numbers are staggering.  An estimated 173,800 new cases and 76,200 death will occur from cancer in 2010. These numbers are up from 2009. In Canada, prostate cancer is most common for men, yet lung cancer is the most deadly form of cancer. For women, breast cancer is the most common diagnosis, and again lung cancer is the most deadly.

The statistics from the Heart & Stroke Foundation, Canada are a bit more encouraging. Heart disease has steadily been on the decline over the past half century. In the past 20 years there are 50% fewer new cases of heart disease. Even though this sounds encouraging, Cardiovascular disease is still the #1 killer of Canadians.  In 2005 31% of all deaths were due to a cardiovascular disease. Of all deaths in Canada, about 7.5% were heart attacks, 6% were strokes and the remainder were ischemic heart disease.

What can a Critical Illness Insurance policy do for you?

Your Critical Illness Insurance policy will provide you with a large amount of tax free cash, paid 30 days after being diagnosed in most cases. This insurance benefit can be used in any way you choose. The most common uses of a Critical Illness Insurance benefits are:

  • Relieve debt obligations like your mortgage
  • Replace lost income due to you or your spouse being off work
  • Make modifications to your home for access and mobility
  • Go to the USA for private health care vs. waiting for treatment in Canada
  • Pay for cutting edge treatments not covered by the Alberta Health Care Insurance Plan
  • Seek alternative treatments around the world
  • Have the financial freedom to spend quality time with family and friends

What critical illness conditions are covered?

Most Critical Illness Insurance plans cover about 24 major illnesses and injuries.  Here is a common list that is used by most of the major insurance companies:

  • Alzheimer’s Disease
  • Aortic Surgery
  • Aplastic Anaemia
  • Bacterial Meningitis
  • Benign Brain Tumour
  • Blindness
  • Coma
  • Coronary Artery Bypass Surgery
  • Deafness
  • Heart Attack
  • Heart Valve Replacement
  • Kidney Failure
  • Life-Threatening Cancer
  • Loss of Limbs
  • Loss of Speech
  • Major Organ Transplant on Waiting List
  • Major Organ Transplant
  • Motor Neuron Disease
  • Multiple Sclerosis
  • Occupational HIV Infection
  • Paralysis
  • Parkinson’s Disease
  • Severe Burns
    • Stroke

    Of all these illnesses, the Big 4 (in bold) make up well over 80% of all insurance claims with cancer being the #1 reason people claim on their policies. Now in Canada all the insurance companies are using Standard Definitions of what each of these illnesses are, and the definitions are in line with the Canadian medical profession.

    Types of Critical Illness Insurance policies available to you.

    Guaranteed Renewable or Non-Convertible type policy: There are two types of policies offering different guarantees. The Guaranteed renewable plan will lock in your premium for 5 years, and then it can increased by the insurance company for everyone if they are losing money on their Critical Illness policies. A Non-convertible plan locks in your premium for life – and the insurance company can never change your premium. Obviously with the higher level of guarantee, the Non-convertible plan has a more expensive premium today.

    Term 10 or 20 policy:You can opt to have a shorter term of your policy. These plans will lock in your premium for 10 or 20 years. At the end of the term you have the option to renew the policy for a very much increase premium. If you would like Critical Illness insurance for a temporary need, like paying off your mortgage or raising children, this is a cost effective option for you.

    Term 65 or 75 policy:  If you wanted to have a level premium for most of your life, but felt if you didn’t get a diagnosis by age 65 or 75, you would be done with your Critical Illness policy, then this is the plan for you. Locked in premiums until you reach these older ages means you will not face a renewal hike in premium. These options are often combined with Return of Premium (below).

    Term 100 policy: This is your truly permanent Critical Illness insurance option. Premiums are locked in until age 100. These are generally Non-convertible policies. If you actually reach age 100 in good health then your premiums end, yet your insurance remains in force if you need it.

    Return of Premium option: Because a Critical Illness insurance policy is a health benefit, there are no cash values build into the policy like Whole Life or Universal Life Insurance. There is an option to have all your premiums returned to you at the end of your policy or if you choose to cancel your policy early. This does cost an extra premium, but it like insurance on your insurance. It is a guarantee of getting all your money back if you are one of the lucky ones who never has a major health event in their life. This option is very often combine with Term 65 or 75 policies, to get money back when you feel you have outlived the usefulness of your insurance plan.