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Critical Illness Insurance

Critical Illness (CI) Insurance has been marketed in the United Kingdom and the USA for more than 20 years and has become a popular insurance product in Canada over the last fifteen years. It's purpose is to provide a tax-free lump sum payment upon the diagnoses of one of a number of critical illnesses.

It has personal and business applications because the lump sum payments can assist with medical costs, fund home alterations, fund a holiday to recuperate, pay off creditors and or a mortgage, compensate for possible loss of customers, provide an ill shareholder with a payout and provide business succession funding.

The definition, of what a Critical Illness is will differ among insurers but the usual illnesses include Heart Attack, Coronary Artery Disease, Cancer, Stroke, Kidney Failure, Blindness, Deafness, Major Organ Transplant, Multiple Sclerosis, Paralysis, Loss of Speech, Loss of Limbs, and Coma.

The underwriting process is similar to life insurance and not as stringent as with an individual disability policy. I have therefore provided critical illness coverage to a few clients who would be declined disability due to pre-existing medical conditions, as a form of income replacement coverage.

One of the leading insurers in Canada that markets critical illness insurance offers the following four policy types covering as many as 22 medical conditions:

  • 10 and 20 Year Term Renewable
  • Level
  • Permanent
  • Primary

The least costly coverage type is the 10 Year Renewable, because similar to a ten year term life policy the premium increases considerably every 10th anniversary year. In addition the policy terminates at age 75 like many CI policies. The most costly is the Permanent policy because it provides a level premium which is payable and provides coverage to age 100.

so that I can assist you to aquire your own affordable insurance policy. Free quotations can be provided by phone, fax or email.