Will you suffer a critical illness?
The odds are that you or someone in your family will experience a serious medical setback at some point – and survive. But while you’re dealing with your illness, your finances could be suffering, too. For example, research by the Canadian Breast Cancer Network found that 44% of Canadians surveyed with cancer depleted their savings and retirement funds to cover treatment costs and make up for lost income.
How does critical illness insurance work?
If you’re diagnosed with one of the conditions covered under your critical illness insurance policy, after the required waiting period you’ll receive a lump-sum payment once your claim is approved. You can use that money for whatever you want.
If you have disability insurance or extended healthcare benefits through your employer, it’s important to understand exactly what those benefits cover, and for how long. It’s a good idea to review your disability policy or healthcare benefits in comparison with the features of a critical illness insurance plan.
- Maximum benefit amounts
- Deductibles and waiting periods
- Employment requirements (i.e., you can't take benefits with you when you leave your job)
- Percentage of income replaced, and for how long
Wise financial planning not only takes into consideration building your savings, but also protecting them. An advisor can help you to determine how critical illness insurance can support your overall financial plan.