Do I Need Critical Illness Insurance?

Nobody plans to get diagnosed with a critical illness in their lifetime. We’re all going to be perfectly healthy and live to meet our great-great-great grandkids, right? 

The statistics on critical illnesses in Canada underscore a sobering reality. Nearly half of all Canadians will grapple with cancer at some point in their lives, according to the Canadian Cancer Society. In the year 2020 alone, a staggering 225,800 new cancer cases were reported.

And that’s just cancer. Other critical illnesses, such as heart disease and stroke, are also fairly common in Canada.

But it’s not just the illness you need to think about. The reality is that facing a critical illness not only poses health challenges but potential financial burdens as well.

While Canada provides access to healthcare and health insurance provides a safety net for most medical expenses, it may not fully shield you from the financial turbulence associated with a critical illness. Bankruptcy Canada highlights that serious illness, coupled with income reduction and job loss, is among the leading causes of financial distress leading to bankruptcy for many Canadians.

This is why critical illness insurance (CI) is so important: it offers a strategic layer of financial security that extends beyond traditional health coverage.

What Does a CI Policy Cover?

A comprehensive CI policy covers more than 20 critical conditions, including cancer, benign brain tumors, Parkinson’s disease, ALS, and coronary artery bypass surgery. The tax-free benefit is typically dispersed 30 days after diagnosis or surviving a qualifying event, such as a heart attack or stroke.

CI serves as a comprehensive safety net, addressing not only medical expenses but also the broader financial implications of a serious illness. The tax-free benefit aids in maintaining financial stability, covering daily expenses, and addressing unforeseen costs like hiring a home care nurse or traveling for specialized treatment.

CI Can Offer Financial Support to Alleviate Stress

Take Tom, for example. Even though he was healthy and had an active lifestyle, he faced a prostate cancer diagnosis at age 55. Tom was worried about the financial impact his illness would have on his business and how to support his children. 

Tom’s earlier decision to purchase a CI policy proved invaluable, providing a tax-free benefit of $250,000 within weeks of diagnosis. The financial support alleviated stress, allowing Tom to concentrate on treatment and positive recovery.

Today, he is cancer-free, his business is thriving, and his children have successful careers.

Protection Against the Uncertainties of Life-Altering Illnesses

By addressing both medical and financial needs, CI empowers you to navigate critical illnesses with resilience and focus on your journey to recovery.

Wondering whether CI is the right choice for you? Feel free to reach out at any time. We’d be happy to review your options and come up with a plan that makes sense for you and your loved ones.