Living Benefits - Toronto, Canada
by Francis D'Costa on 03/04/20
According to stats 1 out of 2 will be a recipient of a life-threatening disease and will survive.
If you’re recovering from a major illness, it’s not an ideal time to be worrying about money. The good news is that critical illness coverage is available to take care of this catastrophic event. It can improve your peace of mind and provide financial relief.
Medical advances have certainly improved the survival rates of people who suffer critical illnesses such as cancer, stroke and heart disease. However, such recoveries may come with a significant financial cost that may impact both the recipient and the individual’s family.
Critical illnesses are medical events that change the course of your life. They are serious diseases and episodes that often require lengthy hospital stays and prolonged recoveries. Common critical illnesses include heart attacks, strokes, by-passes and life-threatening cancers. Critical illnesses are tough on the body, and often on the mind, too. They can also be quite costly. You must take time off work while you recover and during this recovery period, you may experience a significant loss of income.
Critical illness insurance covers an individual against illnesses such as heart attack, stroke, by-pass and cancer and is sold as term — 10 years, 20 years, to the age 65/75 or 100, with the option to lock in premiums. Policies can range from covering 3 medical conditions to as many as 25.
There are variety of options available, such as a return-of-premium; a second-event, which offers limited coverage if you are diagnosed with a second critical illness; a loss of independent existence; and a disability waiver-of-premium, which covers your premium if you've been totally disabled for 90 days.
Critical Illness plans, unlike life insurance, will pay you a lump sum tax-free benefit if you are the unfortunate recipient of a drastic life-threatening illness and survive. A critical illness plan is a protection that provides money while you are still alive. That’s the reason some of the carriers call it a Living Benefit plan. All you need to satisfy the simple conditions of the plan and you get a tax-free lump-sum benefit, which you can utilize in whatever best way you can.
Upon contracting a critical illness, you may be off work for an unspecified length of time and maybe without any or reduced salary. The upfront cash from this plan gives you the peace of mind and focus on getting better rather than being concerned with the financial setback.
Most critical illness plans cover approximately 25 major illnesses and a lump -sum payment is usually paid 30 days after the diagnosis of one of the critical illness conditions as defined in the policy.
Pause for a moment, wander your mind through your friend circle, virtualize how many have had a heart attack, by-pass, cancer, stroke and have survived the illness. Ask yourself this question—will the amount you insure help you in such a situation?
Tailor-make your plan with a variety of options available
Choose the term you wish to protect
10-year, 20-year, to 65, to 75, to 100 are some of the options
· Refund of premium
If you stay healthy, you may choose to cancel your contract and receive a refund of all premiums paid after stipulated periods such as 10 years, 20 years, at ages 65, 75 or 100
· Refund of premium upon death
Have your premiums paid returned to your beneficiary if you die without making a claim and if your plan is in force
· Convert it to a long-term care
Remove the financial concerns from the recovery concerns
Þ Quicker medical procedures (no wait lines in USA), medical treatment not offered or covered in Canada
Þ Consider new medical treatments and medications outside Canada not covered by private or government health insurance plans
Þ You decide when and if you want to go back to work
Þ Early retirement and more
It’s a WIN, WIN, WIN Situation.
If you CLAIM, if you DIE or if you Stay HEALTHY.