How is Critical Illness Cover Paid

1
How is Critical Illness Cover Paid?
- Canadian LIC
2
Introduction

• Critical Illness Insurance is not a regular type
  of health insurance and is implemented as a sort
  of financial assistance in case of rapid onset or
  onset of serious illness. Life insurance in
  Canada has grown to be considered an important
  part of the financial plans of most Canadian
  families, with more people realizing the almost
  daily increasing cost of medical expenses and the
  common presence of heart attacks, cancer and
  strokes. This blog examines how Critical Illness
  Insurance works and is paid in Canada, the types
  of plans, and how you can get the best Critical
  Illness Insurance Quotes.

3
What is Critical Illness Insurance?

• These types of insurance plans include Critical
  Illness Insurance Plans, which aid in alleviating
  the capital strain that an individual might face
  due to a life-altering illness. Hospitalization
  for a critical illness can result in a large
  amount of medical bills, an inability to work, or
  the need for dedicated caregivers to be at home
  or help with activities of daily living. In
  Canada, Critical Illness Insurance pays a
  lump-sum, non-taxable benefit, which is used to
  pay off these costs.

4
How Does Critical Illness Insurance Work?

• Furthermore, after a critical illness is
  diagnosed and a claim is submitted, there is
  usually a waiting period (often called a survival
  period) before the benefit is paid. This period
  is usually 30 days. The policyholder has to be
  alive post this period of time since prognosis to
  be qualified for the payment. The intention of
  this stipulation is to keep the coverage focused
  in its usage to help with recovery and the
  by-products of recovery from the initial phase of
  a critical illness.
• The policyholder will thus receive a lump sum
  after having successfully lived through the
  waiting period. The level of Critical Illness
  Insurance Coverage and the conditions that must
  be satisfied for payment to be made is determined
  by the specific Critical Illness Insurance policy
  purchased.

5
Types of Critical Illness Insurance in Canada

1. Critical Illness Insurance Standard The policy
   is for the life-threatening diseases in the
   standard cover and covers usually till 25
   diseases like cancer, heart attack, stroke, etc.
   The illnesses covered, and the payment terms can
   differ drastically from provider to provider.
2. Comprehensive Plans Provide complete coverage
   including wide-ranging conditions such as loss of
   limbs, severe burns, et cetera. Because
   comprehensive plans provide more complete
   coverage, the cost of the policies might be more
   expensive than standard plans. Comprehensive
   plans are best for an individual looking for an
   insurance plan that leaves no stone unturned.
3. Simplified or Guaranteed Issue Plans No medical
   exam and little to no medical questions. Easier
   to Qualify for, but Less Conditions Covered and
   Lesser Benefit Amounts. They may also vary the
   rules regarding any preexisting conditions.

6
Obtaining Critical Illness Insurance Quotes

• Today, the market for various types of insurance,
  including critical health insurance, is so
  extensive that it is simply necessary to analyze
  offers and conditions from different insurers.
  The quotes for Critical Illness Insurance may
  differ per individual with considerations like
  age, medical history, what kind of illnesses are
  included, and the terms of the policies made.
  Most Canadian insurers have online quote tools
  that allow customers to obtain a quote online
  within seconds and compare rates from different
  insurers by answering a few questions. An
  insurance broker can offer a greater product
  range and possibly hold some insider information
  about the best deals out there.

7
Factors Affecting Premiums and Payouts

• There are a number of factors that affect the
  cost of Critical Illness Insurance premiums and
  how the payouts are to be structured here in
  Canada.
• Age The older you are, the more you pay
  premiums. Health Your medical history and
  current health can determine both the cost and
  availability of insurance.
• Lifestyle Whether you smoke or make other
  lifestyle choices are important. Compensation
• Level The greater the benefit amount, the
  greater the premium you will pay. Length of
  Policy Some policies last up to a designated age
  or term, while others offer lifetime coverage.

8
Payout Process and Use of Funds

• After being paid, you can use the critical
  illness benefit in any way that you see fit.
  Possible uses for the payout by policyholders are
  as follows
• Replace lost income so the insured and family can
  continue to live how they did.
• Purchase private or specialized medical
  treatments drugs not covered by provincial
  health plans.
• Undergo renovations to make your home more
  accessible.
• You must also pay your debts to lessen the
  financial burden when working on your health
  during recovery.

9
The Value of Critical Illness Insurance

• Although the idea of being sick with a
  life-threatening illness is not one that anyone
  likes to contemplate, this is the brutal reality
  of it. Supplemental critical illness policies
  serve as a safety net, helping to defray health
  care costs so patients can concentrate on
  recovering without the added burden of financial
  worries. In addition to health and disability, it
  serves as a happy medium where other coverage
  might not reach.

10
Concluding Words

• In Canada, Critical Illness Insurance is
  something that should be given careful
  consideration by those who want their financial
  future to be secure from the unpredictable nature
  of life. As you consider Critical Illness
  Insurance, evaluate your own needs, learn how the
  plans differ, and get several Critical Illness
  Insurance Quotes so you can find the best
  coverage for your circumstances at the best
  price. If you have the correct plan, you can be
  secure in the knowledge that you and your family
  are accommodated if you end up with a critical
  illness.