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What do you need to know about Critical Illness Insurance?

Holding hand to support each other
Holding hand to support each other

When you are hearing the term “critical illness”, you may think of your healthcare coverage or your benefits from employer. Yes, they do apply for treatments, but how about other things happen while you are seriously sick? Especially, when you are the main income of the family? Or what if you are self-employed? You must be confused a lot about what critical illness insurance is about. Here are some considerations you need to check out.


Critical illness insurance is a tax-free lump sum amount will be paid around 30 days after you are diagnosed with serious conditions. You can use this amount of money on anything as you wish. You can either pay for your estate mortgage, car, or use it for your vacation when you are cured. To be honest, critical illness is like an assured pill when you are diagnosed with cancer or else. At that moment, you at least know you have an amount of money to live through the hard time.


According to Manulife insurance research, nearly half of Canadians will develop cancer in their life time. In addition, 1.6 million Canadians currently have heart disease or are surviving after a stroke. Now it is your time to consider, what if you fall into this half? However, critical illness insurance only covers for some certain serious illness. You will have to carefully go through the list before you decide to go with it.


Another factor you should consider is that what coverage you are having. Let’s say you are covered by provincial healthcare, you have life time insurance and benefits from your employers. Will this coverage support your financial needs while you are diagnosed with serious cancer? Or what happen if you are in a waiting list for 4 months to have your treatment? With the amount paid by critical illness insurance, you can purchase for the treatment immediately a day after. To be simple, while you are dealing with your illness, you don’t want any financial burden on your shoulders.


What if you already purchased for the insurance and you luckily stay healthy for the entire time. Yes, you will have partial refund. But, you will have to pay an extra amount for your premium to get that refund.

Talk to your advisor to understand clearly how exactly it works, and how it will help you without any frustration.

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