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Critical Illness Insurance: Why It’s a Necessity for Canadians? 


Did you know that over 2.6 million Canadians have heart problems, and nearly 250,000 get diagnosed with cancer yearly? Shockingly, around half of Canadians might face cancer in their lifetime. Even worse, only 2 million (5%) Canadians have critical illness insurance out of 40 million people. 

This means that most people in Canada are left financially vulnerable in case they get sick. Critical Illness Cover helps pay for medicine, house bills, and everyday needs. If you don’t have this insurance, you might use up all your savings or have big financial problems during your sickness. 

This post explains why Critical Illness Insurance is important for Canadians. Understanding it can help Canadians make smart choices to stay safe.  

What’s Critical Illness Cover

A critical illness policy is a type of insurance that gives you money if you get diagnosed with a serious illness like cancer, heart disease, or a stroke. This money can help you pay for medical treatment, everyday expenses, and other bills while you’re sick and unable to work. It’s like a financial safety net to support you during tough times. 

Here’s what’s usually covered in a critical illness policy in Canada: 

Why Do You Need Critical Illness Cover in Canada? 

Though there are many reasons why Canadians need to purchase critical illness insurance, here are the prominent ones: 

  1. One in Three Canadians Faces Serious Illness 

In Canada, lots of people get really sick, more than you might expect. Studies say that one out of every three Canadians will face a critical illness that changes their life. This shows how important it is to have critical illness cover.  

This type of insurance gives you a significant amount of money if you are diagnosed with any one of the illnesses it covers. This money helps pay for things like treatments that regular health insurance doesn’t cover.  

  1. Offers You Financial Protection 

This illness cover is your go-to shield against financial worries. Imagine this: you’re hit with a covered illness, let’s say a heart attack. But luckily, you’ve got that critical illness insurance tucked away in your financial toolbox. The insurance company gives you a lump sum payment on diagnosis.  

Now, this money isn’t just for show. It’s your ticket to handle expensive medical costs that your health insurance might not cover. This may include Thrombolytic Therapy, Oxygen Therapy, Coronary Angioplasty, Coronary Artery Bypass Grafting (CABG) Surgery, and more.  

But that’s not all! If your illness stops you from working, don’t worry. That lump sum amount can step in to cover lost income, keeping your finances stable while you recover. 

  1. Wider Flexibility in Using the Lump Sum 

With critical illness cover, you’re the boss of your money! Unlike other insurances that tie you down, this one lets you call the shots. So, what can you do with the monetary benefits provided by the cover? 

Here’s the answer! 

Thus, the beauty of critical illness cover is that it’s your money, no strings attached. You’re free to use it however you see fit, whether it’s tackling immediate needs or planning for the future.  

  1. Acts as a Supplement to Your Existing Health Insurance 

When it comes to staying healthy in Canada, our healthcare system does a solid job, but it doesn’t cover everything. Think about specialized treatments and advanced medical gadgets – those can add up costs fast. That’s where critical illness insurance swoops in to fill gaps left by your existing health insurance.  

You get to handpick your dream team of doctors, specialists, and treatment centers, even if they’re not on your existing healthcare plan’s list. When you purchase a critical illness policy, it’s like having a VIP pass to such top-notch care, no matter what life throws your way. 

  1. Coverage for All Ages 

No matter your age, critical illness cover has got your back! From fresh-faced young adults stepping into the workforce to seasoned seniors enjoying their retirement, this coverage is here for everyone. 

Just imagine! You’re starting out on your career path, or maybe you’re knee-deep in the joys of parenthood. Either way, having critical illness cover means you don’t have to lose sleep over what might happen if you’re hit with a serious illness.  

And even if you’re kicking back in retirement, it’s never too late to get covered. You can enjoy those golden years with peace of mind, knowing that you’re shielded from the financial strain of unexpected health issues. 

Real-Life Case Study of Brenda 

Let’s understand the real-life case of Brenda in Canada! 

Back in January 2010, she was just another busy Canadian, sitting in a staff meeting feeling unwell. Little did she know, life was about to throw her a curveball – a serious heart attack. 

But here’s the twist: Brenda had a secret weapon in her back pocket – a critical illness cover from a reputed company. When the unexpected happened, she didn’t have to stress about the financial fallout. Instead, she could focus all her energy on getting better. 

Moreover, when the healthcare costs were piling up, the money from her critical illness insurance coverage was like a breath of fresh air. It helped cover those extra expenses and gave Brenda the peace of mind she needed during her recovery journey. 

So, if Brenda’s story teaches us anything, it’s this: life can throw some pretty unexpected punches, but with the right protection in place, you can bounce back stronger than ever. 

What Should You Consider While Purchasing Critical Illness Coverage? 

When you’re shopping for critical illness coverage, it’s essential to know what to look for. Here are some key factors to consider: 

  • Illnesses Covered and Not Covered: Check the policy to see which illnesses are included and excluded. You want coverage for the most common serious illnesses like cancer, heart attack, and stroke. 
  • Waiting and Survival Period: Understand any waiting periods before your coverage kicks in and the survival period required after diagnosis for a claim to be valid. 
  • Age of Coverage: Some critical illness covers have age restrictions, so make sure the coverage extends for the duration you need, whether you’re starting early or looking for coverage later in life. 
  • Hospital Network: Check if the policy restricts you to specific hospitals or if you have the flexibility to choose where you receive treatment. 
  • Claim Settlement History: Look into the insurer’s claim settlement history to ensure they have a track record of honoring claims promptly and fairly. 

The Bottom Lines 

In conclusion, ‘Critical Illness Insurance’ is more than just a safety net—it’s a necessity for Canadians. From offering financial protection to providing flexibility in using the lump sum, the illness cover ensures peace of mind during challenging times. 

With the right coverage in place, Canadians can face serious illnesses with confidence, knowing they have the support they need to focus on recovery. 

People Also Ask 

Q. How does critical illness insurance differ from regular health insurance? 

While regular health insurance covers medical expenses like doctor visits and hospital stays, critical illness cover provides a lump sum payment if you’re diagnosed with a serious illness, regardless of your medical expenses. 

Q. Will my premiums increase as I get older? 

Yes, premiums for critical illness insurance may increase as you get older, so it’s essential to consider this when choosing a policy. 

Q. How do I file a claim for critical illness policy benefits? 

To file a claim, you typically need to contact your insurance provider and provide documentation of your diagnosis. They’ll guide you through the process and help you get the benefits you’re entitled to. 

Q. Can I get critical illness insurance if I have a pre-existing condition? 

Yes, you may still be able to get critical illness cover if you have a pre-existing condition. However, coverage for that condition may be excluded from the policy or have a waiting period. 

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