Critical Illness Insurance
When you’re dealing with an unexpected critical illness, you should be focused on your wellbeing, not financial burdens. Critical Illness Insurance is there for you when an illness has affected your life.
New World Agency can help you plan ahead and identify if Critical Illness insurance is right for you. Reach out to us today to learn more.
What is Critical Illness Insurance & How Does it Work?
If you are diagnosed with a medical condition (something serious), then this type of insurance can provide a one-time tax-free payment to you. Depending on the insurance contract you go with, coverage and cost will vary. It’s important to note that while you may not think this type of insurance is necessary, planning ahead is always a good idea.
Critical illness insurance allows you to file a claim based on your diagnosis, and then the payment will be sent to you. Anyone is eligible to apply for this type of insurance.
Here are examples of critical illnesses that are covered:
Loss of Speach
MS (Multiple Sclerosis)
Critical Illness Statistics Among Canadians
Many people within Canada are affected by critical illness.
According to the Government of Canada:
According to the Canadian Cancer Society:
These are just a few of many statistics that show how unfortunately common critical illness is in our country. While these stats may be startling, we also have to remember that people are recovering and thriving despite their critical illnesses as well.
Whether you currently live with a critical illness or not, preparing for any circumstance is always the ideal route to take when it comes to insurance.
Why get Critical Illness Insurance?
To cover yourself in case an illness arises
Though you may not think you’ll be affected by a critical illness in your lifetime, it’s unfortunately common among Canadians as there are many forms of critical illness.
Protection of your assets
When you are diagnosed with a critical illness, having insurance is ideal. You don’t want to be reaching into your other savings in order to support your medical costs.
Focus on Your Health
Your health is what you should be focused on, not financial stress. Critical illness insurance allows you to do just that while having peace of mind that you’re covered for bills and daily expenses.
What Can I Spend my Critical Illness Insurance On?
Medical treatments (whether private or in another country)
Use a replacement for your lost income (for yourself or your partner)
Daily costs such as groceries, transportation, rent, etc.
How Much Coverage is Required?
This will depend mostly on the type of illness, your income, your current expenses (such as mortgage, groceries, etc.), and additional expenses related to your illness (such as healthcare costs, in-home care, travel, etc.).
The professionals at New World Agency can help you decipher how critical illness insurance will benefit you.
While financial help is great and can help ease some stress, emotional support and medical support are also essential. The insurance provider that New World Agency works with can connect you with several options for emotional and medical support, such as access to a network of medical experts.
Speak with us today to learn more.
Types of Critical Illness Insurance
There are two main types:
Great if you need money for various expenses such as medica, personal, living, and so on during your recovery process.
Protection for your personal loans
Buy-sell shareholder agreement funding
Funds to put towards insurance premiums
Your personal financial portfolio will be protected
You can claim a tax credit for medical expenses
Ideal if you need to hire someone while recovery is taking place
Protection of business loans
Protection of overhead expenses for your business
Your personal financial portfolio will be protected
Children & Critical Illness
Adults aren’t the only ones who can suffer from critical illness. Many children also unfortunately can experience an array of different critical illnesses.
With critical illness insurance for children, they are given a one-time payment, similar to what adults are given. Child policies can also be converted to adult policies prior to their 25th birthday (can convert their entire policy or just some of it).
No Claim Made? You Can Get Your Money Back
If you don’t make end up making any claims (not diagnosed with a critical illness), utilize the return-of-premium option. This will allow you to stop your coverage and you can even get up to 100% of your payments back.
How does this work? You can get your money back when you hit year 15, year 20, when you reach the age of 65, when it expires, or at the time of your death.
Other options include:
When a partial withdrawal is made, which means you are able to reduce your coverage in order to get money back from the portion that is now ended.
You can get a paid-up option with your lifetime coverage. This means that as an alternative to getting your money returned, you can apply that money towards future insurance policy payments.
Are you interested in Critical Illness Insurance? We’d love to help! Contact New World Agency today and we will get your insurance plan on track.