Peace of mind when you are really sick.
Critical Illness insurance is a lump sum payment of any amount (often 1 or 2 years’ salary) to cover you when you are very and critically ill. Insurance companies have a long list of illnesses and injuries that they cover (anything from cancers to heart attacks, to severe injuries resulting in paralysis, loss of vision, hearing, speech or other similar critical health events). Critical illness means you are not working anymore, you’re in an out of hospital and there are many bills to pay.
The lump sum pay-out comes in very handy because not only are doctor’s visits stressful, but at least you won’t need to worry about other bills like rent or mortgage.
Where there is an approved claim, that money coming to you is not taxable. It is yours to do as you wish.
Being sick is very, very expensive—even with our Canadian health care system. Public health care does not cover everything. It can’t. The rest comes out of your pocket. Forget “go fund me” campaigns. When you have critical illness insurance, you don’t need to desperately beg for money. You will have it.
There are two types of critical illness insurances:
- TERM (could be a term of 10 or 20 years or to age 65) or
- PERMANENT (for your whole life span)
What if I never get sick, can I get my money back?
If you are one of the few lucky ones on this planet, then there is something called “return of premiums”.
- Return of Premiums upon cancellation or death – is a feature that you can attach on your critical illness policy that allows you to get your premiums back if you cancel (within a set period of time, could be 15 or 20 years) or if you die. In that case, the premiums that you do pay are a sort of banked savings. This is particularly available in children’s critical illness