Being Proactive with Critical Illness Insurance
Compensate Income Loss & Medical Expenses
Critical Illness insurance is a "Living Benefit," that provides you with a Tax-Free lump sum payment upon diagnosis of a critical illness. It can be purchased to cover you and your family (children between 15days-17 inclusive) for up to 30 qualifying conditions. The coverage is designed to mitigate financial struggles when an individual is unexpectedly diagnosed with a life-threatening condition such as;
• Cancer,
• Heart Attack,
• Stroke,
• Coronary Artery Bypass Surgery,
• Multiple Sclerosis,
• and many others.
The most common Critical Illness claims in 2014: Munich Reinsurance Company`s 2014 Individual Insurance Survey
If you go through difficult times, the priority will be your and your loved one's health. You may need extra money because of the potential loss of income, medical expenses not covered by government plans, home or automobile modifications, alternative care costs, and many other unexpected expenses. The policy can be purchased for a specified period of time or for a lifetime and can include riders such as;
• Second Event Rider,
• Waiver of Premium,
• Child Life
• Returns of Premium should you never experience an illness.
Like other insurance products, it is suggested to start the Critical Illness policy at a young age. There are several reasons for that.
1. According to 2016 Canadian Cancer Statistics released by Canadian Cancer Society, due to tremendous progress in cancer treatment, there have been big gains in survival rates. However, 277,000 people a year will be diagnosed with cancer by 2030 – a 40% rise in cases– led by upsurges in prostate and colorectal cancer cases. For example; the risk for colorectal cancer increases with age, but several lifestyle factors have been linked to the disease, including eating a diet high in red and processed meats, a lack of dietary fiber, a lack of physical exercise, obesity, alcohol, and smoking. Lifestyle changes might be the reason why cancer incidences in adults under age 50 are increasing. Therefore, young adults should start thinking about their future.
2. Insurance premiums rise significantly as people age. That’s why make sure to select your insurance policy right from the start.
3. The older you are it is harder to be qualified for the insurance. One of the main reasons for that is once you are 50 years old or older; the impact of family history becomes more relevant and you are more likely to become ill as you get older.
In light of this information, young adults and families should ask themselves “Is it worth the risk?”, “Why is it important to start planning for my/our future?”
Critical illness insurance critics mostly argue that the lump sum payment from the policy can be dismissed by building funds for emergency situations. However, younger generations are considered as inherent spenders, not savers. In addition to this, due to high living expenses, it is not expected for many young families and adults to save enough for an emergency fund. In that case, a small amount of critical illness insurance payments may actually make a lot of sense.
Critical Illness insurance is in place to provide financial support to us. However, foreseeing emergencies and being proactive is our responsibility.