What is Critical Illness Insurance?
Critical illness insurance is an insurance product, where the insurer is contracted to typically make a lump sum cash payment if the policyholder is diagnosed with one of the critical illnesses listed in the insurance policy.
A critical illness insurance payout helps you sustain the life you have and avoid the financial strain a major illness can create so you can focus on your recovery.
How is Critical Illness Insurance paid out?
The policy may require the policyholder to survive a minimum number of days (the survival period) from when the illness was first diagnosed. The survival period used varies from company to company, however, 28 days and 30 days are the most common survival periods used. Once all of the contract variables are met the insurance will be paid within two weeks.
What are some of the illnesses covered by Critical Illness Insurance?
*Please note that coverage will vary depending on insurance plan
- Alzheimer Disease
- Aortic Surgery
- Benign Brain Tumour
- Cancer (Life Threatening)
- Coronary Artery Disease Surgery
- Heart Attack
- Heart Valve Replacement
- Kidney Failure
- Loss of Independent Existence
- Loss of Limbs
- Loss of Speech
- Major Organ Failure on Waiting List
- Major Organ Transplant
- Motor Neuron Disease
- Multiple Sclerosis
- Occupational HIV Infection
- Parkinson's Disease
- Severe Burns
What are some Canadian Statistics for Critical Illness?
Statistics Canada places our lifetime probability of developing some form of cancer at one in three.1
In the last 30 years, the cancer survival rate has nearly doubled to 55 percent.3
In recent years, the death rate among patients hospitalized for heart attacks has been cut in half to eight percent.2
75 percent of stroke victims will survive the initial event.2
Sources: 1 Statistics Canada, 1999; 2 Heart and Stroke Foundation, 2003; 3 Canadian Cancer Society, 2004.
What are some of the benefits of having Critical Life Insurance?
Critical Illness Insurance can:
- Take time to heal without worry
- Sustain the life you have
- Pay off your loans or mortgage
- Buy special equipment to help you during your illness
- Hire help
- Take care of the future for your family
- Use it for any purpose you prefer