Understanding critical illness insurance

Mortality and critical illness are not common conversation topics around the dinner table. The discussion and preparation for such events is almost taboo to discuss, however being prepared for the worst could prove to be the wisest preparation of your life.

The Impact of Critical Illness

Critical illness is certainly not a welcomed or anticipated infliction, but it is all too common for Canadians of all ages. Although Canada offers free health care for treatment of most critical illnesses, there are plenty of expenses that are not provided for. Things such as in-home nursing care or power wheelchairs will all come at an additional cost to you and your family. Even if you earn a steady income and are financially stable, things can be quickly derailed with an unexpected turn of health.

Critical Illness Insurance Payments

Payments for critical illness insurance differ from regular health insurance. Regular health insurance typically pays amounts distributed over an extended course of time. Critical illness insurance is a lump sum payment, typically payable 30 days after the diagnosis of a covered illness. The lump sum payment offers some financial flexibility to improve quality of life, such as purchasing home medical equipment or financing a home accessibility renovation.

Stay-at-Home Spouse Insurance

Often forgotten in matters of insurance is the stay-at-home spouse. Since the spouse is not earning an income it may not seem logical to add extra insurance for them, however this is a misconception. The stay-at-home spouse is keeping the house in good order and may be raising children, so in their absence quite a few things will be neglected. Critical illness insurance can ensure that house cleaning and daycare bills can be paid for should the need arise, as they were not anticipated expenses but turn out to be necessary ones.

Critical Illness Insurance for the Small Business Owner

It is also wise to have critical illness insurance if you are a small business owner. Someone who runs their own business cannot afford to be away from work for extended periods of time and may need to hire a replacement in their absence. The funds received from a critical illness insurance payout can also bridge the gap for expenses not covered under the employee group benefits, if there are even benefits available in the first place.

Although insurance is sometimes an annoyance to research and pay for, it has proven time and time again to be a life-saving utility. Allow your financial advisor to guide you on the path to critical illness insurance and discuss other risk management options to strengthen your family protection net.