Critical Illness Insurance
Critical Illness Insurance
Why do you need critical illness insurance?
A critical illness policy is designed to create a tax-free lump sum payment soon after the onset of a critical medical problem such as a heart attack, life threatening cancer, stroke etc. One of the most common problems our clients experience upon the diagnosis of a critical illness is that they require financial flexibility over and above their monthly disability payment. Your critical illness plan is designed to help alleviate financial burden thereby allowing you to make the best possible medical decisions without financial constraints.
How much coverage should you have?
Most of our clients mirror their critical illness lump sum payment to the amount of their annual income and or tax liability.
Covered Conditions
Below are the covered conditions your policy should include
Acquired brain injury due to external trauma
Aortic surgery
Aplastic anemia
Bacterial meningitis
Benign brain tumour
Blindness
Parkinson's disease and specified atypical parkinsonian disorders
Cancer
Coma
Coronary artery bypass surgery
Deafness
Dementia, including Alzheimer's disease
Heart attack
Stroke
Heart valve replacement or repair
Kidney failure
Loss of independent existence*
Loss of limbs
Severe burns
Loss of speech
Major organ failure on waiting list
Major organ transplant
Motor neuron disease
Multiple sclerosis
Occupational HIV infection
Paralysis
8 partial payout illnesses for non life threating cancers- usually up to $50,000
Cancer - chronic lymphocytic leukemia (CLL) Rai stage 0
Cancer - ductal carcinoma in situ of the breast
Cancer - gastrointestinal stromal tumours classified as AJCC Stage 1
Cancer - grade 1 neuroendocrine tumours (carcinoid)
Cancer - stage A (T1a or T1 b) prostate cancer
Coronary angioplasty
Cancer - papillary or follicular thyroid cancer stage T1
Cancer - stage 1A malignant melanoma
What features do we recommend for your individually owned critical illness insurance?
We recommended a critical illness recovery plan with level premiums and coverage to at least age 75.
Return of Premium Option – get up to 100% of your premiums back if no claim is made
Conversion to Long-Term Care – convert part of your coverage after 20 years (without medical underwriting) to receive lifetime long-term care coverage, payable up to age 100
Can my corporation pay the premium?
YES. Your corporate tax rate is lower than your personal tax rate so many of our incorporated clients have their policies owned and paid for by their corporations. If your policy corporate owned and you need to make a claim, the benefit will be received tax free by your corporation at the time of claim and can pay this out to you as a taxable benefit.
Is there a return of premium option?
Yes. One of the attractive features of your critical illness policy is the return of premium option. This option states that so long as you have not claimed, you may elect to exercise the refund of premium option as soon as the 15th policy year (see policy for schedule).
Will I get a lower rate for the same product from another advisor?
No. With we negotiated a large case annual premium discount of 5-10% which is the largest discount in the marketplace. If you are seeing a lower rate, perhaps another advisor is showing you a policy with different definitions and benefits.
Why do I need Critical Illness insurance?
According to the Heart and Stroke Foundation of Canada.
50% of men and 30% of women will suffer from heart disease in their lifetime.
60% of stroke victims will be left with a disability.
- 75% of stroke victims and 80% of heart attack victims admitted to the hospital survive.
What are the primary causes of claims for critical illness?
Cancer – 68%
Heart Attack – 10%
Stroke – 5%
Coronary Bypass surgery – 5%
Other – 12%
According to the National Cancer Institute of Canada
40% of men and 35% of women will develop cancer in their lifetime.
More than half of all people living with cancer will survive at least five years after diagnosis.
Did you know…
1 in 1200 people will have a house fire
1 in 240 will be in a serious car crash
1 in 4 will suffer a disability over 90 days
- 1 in 3 will suffer a critical illness in their lifetime
What is the cost of medical care?
In Canada the average waiting period between a referral from a family doctor to treatment is 114 days. Most of our clients want treatment quickly; therefore, most consider going to the United States. Services in the U.S. cost (Cdn. dollars)
Liver Transplant – $470,000
Bone Marrow Transplant – $325,000
Cardiac Valve Replacement or Coronary Bypass Surgery - $175,000
How long until I receive my payment after the diagnosis of a critical illness?
There is a 30-day waiting period.
What are the facts on claims?
The three major reasons for critical illness insurance claims are heart attack, cancer and stroke. Seventy-five percent of the population will suffer from one of these illnesses in their lifetime. ”Critical illness insurance is not because you are going to die, but because you are going to live.”
Final Thoughts
You’ve invested over a decade in your education and career. Why leave your financial protection in someone else’s hands?
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Let’s customize a plan that fits your specialty, income, and goals.