Everybody talks about having Critical Illness Insurance coverage today. We as “ THE SEKHON TEAM “ would say, it is a subject of concern for everyone in today’s busy and speedy life. Actually most people have an idea about the word “ Critical Illness “ but they don’t know in detail the importance of having Critical insurance Coverage in their lives. This article of ours will open your eyes today and will definitely make you aware about some true facts and aspects of this very important insurance coverage.
What is Critical illness?
“Critical illness” is a life-threatening condition, which is generally strictly defined. In simple words critical illness can turn out to be a nightmare for a person who has no coverage for Critical illness. On one side a person is under treatment due to critical illness but on the other side he has to support his family as usual with unexpected medical bills, mortgage and other ongoing routine bills.
How Critical illness insurance Coverage works?
Critical illness insurance policy is a contract between an insurer and the policyholder. The pre- requisites for the approval of this coverage are some paramedical questions and lab tests (Urine test, blood profile etc.), which depend on age and the face value of the applicant. After approval, if the policyholder is diagnosed with one of the covered illness specified in the contract, the insurer pays tax-free lump sum payment. This lump sum money can be spent on any financial need during his/ her medical crisis.
Why is Critical illness insurance policy necessary?
In case any critical illness is diagnosed, you cannot fully rely on MSP or any group health coverage. Trust me, personal and retirement savings saved for old age protection are not meant for this purpose. Disability insurance replaces income but is not sufficient for the added burden of medical and routine daily household expenses. Long-term care insurance is too restrictive and inflexible, so Critical illness coverage is the only solution left with the person.
List of Critical illnesses that could be covered
Canadian Statistics indicate some important facts which must not be ignored. 40% of women and 45% of men will be diagnosed with cancer at some point in their lives. ( Canadian Cancer Society’s Steering Committee: Canadian Cancer Statistics 2009,Toronto Canadian Cancer Society, 2009). Out of these, 62% will survive more than 5 years and that is the point of concern as ongoing payments like mortgage, medical bills and other day to day household expenses will not stop.
At any stage, when any covered illness is diagnosed and if it meets the definition set out in the contract , the affected person has to satisfy the required waiting period , usually 30 days but some exceptions apply . After satisfaction of waiting period, the insurance company pays the amount of chosen face value which is tax-free. This coverage is also known as living benefit.
Highly recommended riders and options available in CI Insurance Coverage you must consider:
If you have any questions regarding Critical Illness insurance or you need to know the premiums on your age, please feel free to call us for free quote at 778 320 5359 ( Rajdeep Singh Sekhon ) or at 604 358 0590 ( Manmohan Kaur Sekhon )
THE SEKHON TEAM