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Life & Health Insurance

Critical Illness Insurance

Jeff Graham, CFP, CLU

What is Critical Illness Insurance?

Critical Illness Insurance pays a tax-free, lump-sum benefit if you are diagnosed with a heart attack, stroke, cancer or many other illnesses and conditions (25+).  You must survive for a period of at least 30 days for a policy claim to be made.
 
Critical Illness Insurance provides a “living benefit” aimed at offsetting lost income and covering additional expenses that arise from becoming critically ill – getting sick is expensive.

Why is Critical Illness Insurance important?

More than 50% of Canadians will have a life-altering disease or illness over the course of their lifetime.  That’s the bad news. The good news is, with advances in medical sciences, more and more people are surviving these horrible illnesses. Your health may survive, but will your finances?  Few are prepared for the financial burdens that can threaten both lifestyle and financial security.  Those who survive critical illnesses for a period of 30 days face serious financial constraints that threaten their lifestyle and savings. Here are some examples:
  1. Reduction/loss of income
  2. Out of pocket medical expenses
  3. Child care
  4. Nursing costs 

Critical Illness Insurance alleviates those financial concerns and allows you to focus on one important element: recovery.  You can use the Critical Illness benefit in any way you see fit. For example, you may want to go out of the country for specialized or exploratory medical treatment. Above all, you maintain control of your recovery.

The illnesses/diseases covered under most Critical Illness policies:

Acquired Brain InjuryCoronary Artery BypassMajor Organ Transplant
Alzheimer’s DiseaseDeafnessMajor Organ Failure
Aortic SurgeryDementiaMotor Neuron Disease
Aplastic AnemiaHeart AttackMultiple Sclerosis
Bacterial MeningitisHeart Valve ReplacementOccupation HIV
Benign Brain TumorKidney FailureParalysis
BlindnessLoss of Independent ExistenceParkinson’s Disease
Cancer (Life-Threatening)Loss of LimbsSevere Burns
ComaLoss of SpeechStroke

  • Critical Illness Statistics (for the most common illnesses covered under C.I. policies)

Cancer:

  • ~44% of Canadians will develop a form of cancer in their lifetime
  • An estimated 234,000 Canadians would be diagnosed with cancer in 2022
  • Based on data from 2015 to 2017, the predicted five-year net survival for all cancers combined was 64%

Heart Attack:

  • 1 in 4 Canadians will contract some form of heart disease in their lifetime
  • An estimated 750,000 Canadians are living with heart failure
  • 75,000 Canadians suffer heart attacks every year

Stroke:

  • Over 108,000 Canadians suffer a stroke every year
  • 75% survive the initial event
  • 878,000 Canadians are living with the effects of a stroke

Multiple Sclerosis:

  • Estimated over 90,000 Canadians are living with Multiple Sclerosis, which is one of the highest MS rates in the world
  • MS is the most common neurological disease among young Canadians

Parkinson’s Disease:

  • 30% of all Parkinson’s patients are under 50
  • 20% of all Parkinson’s patients are under 40
  • More than 100,000 Canadians live with Parkinson’s

Statistics credited to the Canadian Cancer Society, The Heart & Stroke Foundation, Ontario Stroke Network, MS Society, Parkinson’s Foundation of Canada

To apply for Critical Illness Insurance, or for more information on the topic, contact Jeff Graham at (604) 363-7549 or jeff@firstoakfinancial.ca.

DISCLAIMER: this commentary is provided for general informational purposes only and does not constitute financial, insurance, investment, tax, legal or accounting advice. This article is not meant to determine claim eligibility.

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