Tips for buying critical illness insurance

Freedom 55 Financial - Nov 15, 2020
Why should you get critical illness insurance?
Financial support at a critical time

Financial support at a critical time

If you were diagnosed with a serious illness, what would you do? It's uncomfortable to consider, but the chance of being diagnosed with a critical illness isn’t all that uncommon. You can't prevent the unthinkable, but you can prepare for it financially. 

Talk to your advisor about critical illness insurance. If you’re diagnosed with a covered condition, it can help you with unexpected expenses and protect your retirement savings while you recover.

Why might you need it?

Critical illness insurance can help if you have people that depend on you. 

When people have a critical illness, they may have extra expenses or a loss in income. This insurance type helps with the extra expenses not covered by your benefits or the government. You can spend it however you want. Best of all, it lets you focus on the most important thing - getting better!*

*You must apply for coverage before being diagnosed with a critical illness.

What is critical illness insurance?

If you’re diagnosed with a covered condition, you’ll get a one-time, lump-sum, tax-free payment  for you to use however you want. In some cases, there’s no waiting period. You’ll get resources including counselling services and family support. And, at this time, there’s also access to expert medical help through Best Doctors® for second opinions, treatment options, etc. 

Talk to your advisor to learn more about this insurance and the options you can add.

How much coverage do you need? 

It depends. Everyone’s situation is different. For example, what’s your current income and expenses? Here’s a list of some items that can help you figure out if you have enough coverage:

  1. Income: The money your household brings home from work on a regular basis:
    • Lost income – how much income might you lose if you were too sick to work?
    • Leave of absence – if your spouse or family member had to leave work to care for you
  2.  Current expenses: What payments do you have to make on a regular basis? Some expenses might include:
    • Mortgage or rent
    • Loans and other debts
    • Groceries and utilities
    • Credit card payments
  3. Extra expenses: These types of expenses are harder to predict. They may be closely related to your illness or affected by it:
    • Healthcare – hospital room, medications, etc.
    • Travel for treatments
    • Childcare
    • Domestic help like a live-in nurse
    • Home renovations – wheelchair accessible

How much does it cost?

Your monthly premium depends on your lifestyle, age and medical history.

What illnesses are covered? 

Your advisor can provide you with the full list. Your contract will define what conditions you’re covered for. 

What if I have group critical illness insurance through my employer? 

You should first speak to your employer to learn more about your plan and coverage. Your advisor can help you figure out if you may need additional coverage. 

Still have questions?

It’s true that there is no standard, one- size- fits- all solution. Buying critical illness insurance  is unique to your own needs. That said, most people want it because it may help them feel better prepared for the unknown. Advisors understand that. Whether it’s applying for critical illness insurance or filing a claim, you can count on your advisor’s advice through the entire process. 
 

Are you interested in Critical illness insurance? Let’s talk about it today.