Critical Illness Insurance

Critical Illness Insurance: What Everyone Should Know


Statistics show a critical illness will affect almost three out of every 10 otherwise healthy adults before they reach the age of 65. These illnesses are debilitating physically and can be financially devastating.



However, critical illness insurance guarantees you’ll be covered if a health complication makes it impossible for you to work.


What is critical illness insurance?

Critical illness insurance is a type of living benefits insurance policy, which means it provides you with benefits while you’re still alive. If you’re diagnosed with a critical illness, you’ll receive a one-time, lump-sum payment. The health condition you’re diagnosed with can be one of the following:

• Cancer
• Heart attack
• Stroke
• Multiple sclerosis
• Parkinson’s disease
• Alzheimer’s disease
• Paralysis


However, there are other illnesses for which you may also receive compensation if you have this type of insurance.


Once you receive your lump-sum payment, you can use it any way you wish. You can spend it on medical expenses, home modifications, debt repayments or even a bucket-list trip.


Note that payment depends on a survival period, which means you must live a certain number of days after diagnosis to receive the payment. This period is usually one month.


How much does critical illness insurance cost?

Many things factor into the cost of critical illness insurance and it will vary from person to person. Age, sex and lifestyle choices such as whether you smoke or drink are all factors. For example, the cost of critical illness insurance is much higher for older people and men as they’re more at risk.


The type of policy you choose will also determine your cost. Payments can vary from thousands to millions of dollars. The higher the payout, the more expensive the premiums.


Who should get critical illness insurance?

If you’re a young adult with a family and household debt such as a mortgage and car payments, critical illness insurance may be right for you. You need to determine if you’d be able to keep up your monthly payments and support your dependents if you were unexpectedly diagnosed with a serious illness.


Older people with more savings, a pension, no dependents, and less debt will benefit the least from critical illness insurance.


Many group insurance plans include critical illness insurance as part of their employee benefits packages. It’s best to check to see what type and how much coverage you may already have. Coverage should equal one year’s salary.


Expert insurance advice in Nova Scotia

When it comes to life insurance, travellers insurance and home and auto insurance in Nova Scotia, the brokers at Eisenhauer Insurance Inc. are here to make sure you and your loved ones are protected. Not sure if critical illness insurance is right for you? Contact us today to talk to a broker or get a free quote.