Critical Illness Insurance

Hopefully, critical illness insurance won’t be necessary in the future, according to Pankaj Bhatia from Insure In Canada. Critical illness insurance can be a lifeline when faced with a significant medical emergency, such as a heart attack, cancer, or a stroke. Many life-threatening illnesses are not covered by standard private or public health insurance plans. Specialized treatment can be costly due to its high cost.
Find out how critical illness insurance works, what it covers, and if you and your family should consider it.

How does critical illness insurance work?

Many Canadians, especially young and healthy, cannot imagine being diagnosed with cancer, having a heart attack, or having a stroke. Sadly, it happens more often than we would like.
A critical illness policy provides additional coverage in medical emergencies such as heart attacks, strokes, or cancer. The policies pay beneficiaries cash to cover the costs of these emergency or illness situations where traditional health insurance may fall short. To keep up with the increasing average life expectancy, providers are finding ways to ensure you can afford to get older.
Even with excellent health insurance, a critical illness can be costly. In the event of a critical condition, you are covered in the following circumstances:

• Heart attack
• Stroke
• Cancer
• Coronary bypass

The Canadian healthcare system covers many costs, but expensive prescriptions, private specialists, and tests are often not covered.
It is possible to use critical illness insurance payouts for non-medical expenses related to the illness, such as transportation and family support.

How does critical illness insurance work?

Many Canadians, especially young and healthy, cannot imagine being diagnosed with cancer, having a heart attack, or having a stroke. Sadly, it happens more often than we would like.
A critical illness policy provides additional coverage in medical emergencies such as heart attacks, strokes, or cancer. The policies pay beneficiaries cash to cover the costs of these emergency or illness situations where traditional health insurance may fall short.
To keep up with the increasing average life expectancy, providers are finding ways to ensure you can afford to get older.
Even with excellent health insurance, a critical illness can be costly. In the event of a critical condition, you are covered in the following circumstances:

Critical illness insurance: what are the benefits?

As compensation for a monthly fee, critical illness insurance offers lump-sum benefits after being diagnosed with a covered condition. As a result of medical advancements, those with serious illnesses are living longer. The cost of healthcare has also increased significantly due to medical progress.

Medical bills associated with your diagnosis, including treatments not covered by traditional health insurance, can be covered by the benefit of a critical illness insurance policy. Your mortgage, child care, or groceries can also be covered with this type of insurance. Your payout will cover those costs if you need transportation for medical appointments. A critical illness policy allows you to focus solely on your recovery when facing a severe illness instead of worrying about paying your bills and providing for your family.

What does critical illness insurance cover?

Ultimately, critical illness insurance coverage covers a wide range of critical illnesses, but some of the most common illnesses that trigger payouts are:

• Heart attack
• Stroke
• Life-threatening cancer
• Coronary bypass
• Renal failure
• Paralysis
• Loss of a limb

Here is the complete list of Critical illnesses

• Huntington’s chorea
• Kidney failure
• Liver failure
• Loss of independence
• Loss of Limbs
• Loss of Speech
• Lou Gehrig’s disease – amyotrophic lateral sclerosis (ALS)
• Major organ transplant
• Motor neuron disease
• Multiple sclerosis
• Muscular dystrophy
• Occupational HIV infection
• Paralysis
• Parkinson’s disease
• Permanent paralysis (paraplegia, quadriplegia)
• Primary pulmonary
• Progressive systemic
• Pulmonary fibrosis
• Severe burns
• Stroke (cerebrovascular accident)
• Transient ischemic attack

• Acquired brain injury due to external trauma
• Active hepatitis, AIDS or AIDS-related disease
• Alzheimer’s Disease
• Aortic surgery
• Aplastic anemia
• Autism
• Bacterial meningitis
• Benign brain tumour
• Blindness
• Cancer (life-threatening)
• Coma
• Coronary angioplasty
• Coronary artery bypass surgery
• Coronary surgery (coronary artery bypass)
• Cystic fibrosis
• Deafness
• Dementia
• Diabetes
• Dilated cardiomyopathy
• Fulminant viral hepatitis
• HIV infection

What is not covered by critical illness insurance?

Critical illness insurance does not cover some conditions and services, even though it covers many costs associated with a covered illness. Critical illness insurance policies do not typically cover diabetes, asthma, and multiple sclerosis. Pre-existing conditions and drug or alcohol-related conditions are also not covered.
Review your policy thoroughly to ensure you know what is and isn’t covered.

Do I need critical illness insurance?

Experts in Canada recommend a minimum of 24 months’ salary as a rule of thumb. When recovering from a severe illness, it usually takes this long. For example, earning $4000 per month, you should have approximately $100,000 in coverage. Whether you need critical illness insurance depends on the payout you would require if you were diagnosed with one of the covered illnesses.

The following expenses may be incurred:

• Rent or mortgage insurance payments
• Groceries, electricity, gas, and water are general household expenses
• Do you have a loan, a car payment, or a credit card debt?
• Taking care of children or attending to family obligations

Lastly, keep in mind the possibility of incurring medical costs. If you suffer from an illness requiring clinical trials or services not covered by your insurance, you may have to pay for them out of pocket. Sometimes, you may even have to hire an in-home nurse or renovate your home to make it wheelchair accessible.
Taking into account all of these factors will determine how much critical illness insurance you will need.