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You are here: Home / Articles / Understanding critical illness insurance

Understanding critical illness insurance

June 30, 2014 by Kevin Gebert

Why you need it now more than ever

You buy house insurance to safeguard your home, car insurance to protect your car, and life insurance to ensure your loved ones are financially cared for in case of unforeseen circumstances.  But what about protecting your most important asset: your ability to work for a living.  Critical illness insurance is a form of protection that can provide you with a lump sum payment if you are diagnosed with a covered critical illness.

Financial stress is the last thing you need to deal with when you have a critical illness.  A well-crafted benefit provides you with a lump sum payment with no restrictions on how it is spent.  You can use the money to help cover lost income, to pay for private care, medical equipment or even a vacation. Whatever you need to help you and your family get through the trying times that a serious medical condition can bring.

Critical illness insurance offers a return of premium option in which insurers pay back all the premiums at the end of the contract if the policy holder does not make a claim. This guarantee can mean peace of mind, with the additional benefit of potentially reclaiming those premiums.

Consider the facts…

Health risks to consider

Heart disease, stroke and cancer are the leading health issues facing Canadians today:

  • 38% of Canadian women and 44% of Canadian men will develop cancer during their lifetimes.
  • It is estimated that there are over 70,000 heart attacks in Canada each year.
  • Every 10 minutes, one person in Canada has a stroke.

Why you need it now

The good news is that more Canadians than ever are surviving life-altering illnesses:

  • Cancer mortality rates are declining for males at all ages and for females under the age of 70.
  • In recent years, the rate of survival among patients hospitalized for a heart attack has increased to 92%.
  • 80% of Canadians hospitalized for stroke each year leave the hospital alive.

All the more reason to ensure financial stability while recovering from a serious illness.

Sources: 1 Canadian Cancer Society, www.cancer.ca, 2006; 2 Heart and Stroke Foundation, 2001; 3 Heart and Stroke Foundation of Canada, Annual Report 2004; 4 Canadian Cancer Society/National Cancer Institute of Canada: Canadian Cancer Statistics, 2006; 5 Heart and Stroke Foundation, 2002.

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