Critical Illness Insurance

The one type of Insurance which is getting more and more popular as the time passes; and more people are buying this Insurance, because that they are buying not for some one else but for themselves. This Insurance is also known as “Living Benefit Insurance” and can also be said as “NO COST Insurance”! As the money you pay in is guaranteed to be back in your pocket in any three scenario that could happen to the insured, when one buy a C I  policy, one of three situation bound to happen. (1) The Insured will have one or more Critical Illness in his/her life time, (2)  Will not have a critical Illness during his/her Life time, and  (3) The Insured will die of an accident. In all these situations the insured or their beneficiary will gets the money back, that is why it is called as the Living Benefit Insurance or can also be said as no cost Insurance.

Let us understand this product and its place in our life, the need and its usefulness in our life by answering the following questions.

1. What is Critical Illness Insurance?
2. Why do we need C.I.? when government is taking care of our hospital Bills.
3. When I am young and why do I need it?.

Critical Illness Insurance pays Lump sum to an Insured while they are alive, but has suffered one of 23 condition (Covered conditions and number conditions may vary from company to company) which is generally covered in a CI policy are:-

Cancer , Stroke, Heart Attack, Coronary Artery Bypass Surgery, Kidney Failure, Major Organ Transplant, Multiple Sclerosis, Coma, Paralysis, Dismemberment, Aortic Surgery, Blindness, Deafness, Muteness, Major Burn, Benign Brain Tumor, Occupational Injury – HIV, Motor Neuron Disease, Alzheimer’s Disease, Parkinson’s Disease, Cystic, Fibrosis, Heart Valve Replacement, Loss of Independent Existence.

When a Insured suffer any one of the covered condition and lived for next 30 days the Insurance Company will pay the Insured the amount of coverage.

The need for C.I. is because in the Context that the Disengagement of Government at all levels and Changing Demographics.

Government Disengagement:-

• Hospital Closures
• Increase delays in emergency rooms
• Increased waiting lists for services
• Forced holidays
• Inadequate home care
• Dramatic Increase in the costs of medication
• Decreases in the levels of health Insurance funding and Increases I user fees

Changing Demographics:-

• Families are having fewer children
• In 86% of families, both spouses work
• The population is aging
• Life expectancy is increasing every year

The primary concern today is not dying too soon but living too long!

You have a greater chance of suffering a Critical Illness V/s. Dying before age 75. And who can be affected by Critical Illness? The statistics shows that a young working male/female, single mom, young families, elder couples and in a nut shell any human being who breaths can be affected. And when we look at the Heart and stroke Foundation of Canada  stat 1 in 4 Canadian will develop some form of heart disease during their lifetime; and 1 in 2 heart attack victims are under age 65 and 82% of the victims survive their first heart attack. Cancer Society of Canada observed that 1 in 3 people will develop cancer during their lifetime, and 3out of 4 families will be affected, 1 woman out of 9 will develop breast cancer during her life time and the same for men for Prostate cancer.
1 in 20 people are at risk of having a stroke and 50,000 Canadians have stroke each year and is the same case with Multiple Sclerosis and M S is twice as prominent among women than men.

The Effect of a Critical Illness:

• Ability to work
• Lifestyle
• Hobbies and recreational pursuits
• Relationships – family and friends

• • business, partners, shareholders
  • and creditors

A Critical Illness can cause untold financial strain and emotional stress!!!
How ever with all your stress and the inability to work will cause decrease in income but your BILLS to pay stay the same? Did you know that 80% of all mortgage foreclosure are related to a change in the mortgagee’s health.

When your income is going downhill and your bill start to climb as you have extra bills to pay for Medication, Treatments, Transportation, Private Nurse Care e.t.c.

Here comes the Critical illness Insurance as the BEST TOOL that permits you to maintain your life style and have a good financial health during the critical time of your Life by providing you with a LUMP SUM insurance payment so that you can take time off work and need not to worry for money at a difficult time in your life having to face the hard ship of the illness.

There are different types of Critical Illness policies out in the market, choosing the right policy is very important. As we have seen in the last issue that the best part of this policy is that in the event of not having the Critical Illness you will get the premium back which you had paid over the years as lump sum at the end of the policy which can come as a good retirement pocket money at that age.

It may be noted that in the world only in Canada the Critical Illness Insurance has the Guaranteed Premium. So therefore my suggestion is that my dear readers will have a serious thought about this product and talk to your Financial Advisor and or call me to have the Best C. I. Insurance Policy when you are healthy and insurable. It may be noted that you may get a Life Insurance but may not get a Critical Illness Insurance as the Underwriting of a C.I policy very strict as compared to life Insurance. Therefore delaying in making a decision may cause that you may not get one when you think of buying one.

In the next issue we will discuss the importance of having Travel and Visitors Insurance.