Critical Illness Insurance in Canada provides coverage for illnesses and injuries that are considered life threatening. Most critical illness policies come with a five year limit of coverage. In most cases, there is no limit on the length of time you can receive a payout. In Canada, there is no tax advantage for having critical illness insurance. This means that while it is true that Canadian insurance companies are regulated by the Canadian Revenue Agency, there are very few restrictions placed on their advertising and marketing of critical illness policies.
Generally, a cash benefit payment is made to you within thirty days of your becoming ill. There are usually no restrictions on how the money can be used and once your application is approved, your critical illness insurance plan ceases. It is also noteworthy that you are entitled to keep the full benefit even if you recover completely from your illness. However, there are restrictions placed on how this benefit is calculated.
Most critical illness insurance available in Canada are standardized to one of three plans – the basic, the intermediate and the elite. A standard plan member may only need to make one premium payment for their lifetime coverage. Some plans offer replacement benefits if the insured member becomes seriously ill or dies during the initial ten-year term of the plan. However, most plans have a limited or no replacement benefit plan available.
On average, the cost of critical illness insurance in Canada is between nine and ten percent per month. The cost is determined by your age, your sex, the number of people who will be included in your family and the area of Canada where you live. For instance, if you are fifty years old and intend to remain living in Canada as a senior citizen, you will pay much less than someone who is in their sixties. The age and area of Canada to determine the amount of time you will spend on a plan.
In addition to the monthly premium, some plans charge a fee for overseas travel claims. The cost of traveling to Canada for treatment can be prohibitively expensive for many Canadian residents. The fees assessed are intended to help defray the expense of treatment when illness prevents members from making frequent trips to see their doctors in Canada. While it is not a requirement, those who have been diagnosed with critical illnesses that prevent them from travelling to Canada can apply for a special health travel card.
Critical illnesses cover a wide range of conditions. You may be covered for treatment for cancer, diabetes, heart disease, respiratory illnesses, strokes, blindness, Parkinson’s disease, chronic obstructive pulmonary disease, bone diseases, rheumatoid arthritis, multiple sclerosis, Parkinson’s disease, migraine, stress, eye problems, cancer or serious accidents, chronic fatigue syndrome, alcoholism, and traumatic brain injuries. The cost of premiums depends on your health condition and age. The benefits and coverage provided will vary between plans, as do the terms of contracts. Therefore, it is critical to read the contract thoroughly before signing on the dotted line.
Because many people are aware of the importance of carrying adequate insurance in case of illness, many purchase critical illness insurance in Canada on the basis of their own experiences. As most policies stipulate, coverage is only available for illnesses that are diagnosed during the policy period. The costs of premiums depend on a number of factors including age, gender, experience, family medical history, and risk of complications. Health professionals recommend that everyone get regular screenings both at work and at home to detect any potential problems. Many policies also include prescription benefits which can cover medicines prescribed by doctors.
For families with a single breadwinner, the costs of insurance can become overwhelming, especially if one of the breadwinners is diagnosed with a critical illness or chronic medical condition. Some policies provide help paying for funeral expenses and daily living expenses. Others provide assistance with debt management, depending on the monthly income earned. While there are some benefits provided through various insurance agencies, this type of insurance is more complicated and the process more tedious than most life insurance. However, in the event of a death, critical illness insurance in Canada ensures that families are able to meet the cost of continuing living expenses until they are able to manage on their own.