Critical Illness Insurance

What is Critical Illness Insurance?

Critical Illness Insurance is a clever way to protect your financial future, with applications for your personal needs as well as business protection. While some forms of insurance, such as disability income replacement insurance, are determined by both your ability to work and salary, critical illness insurance is triggered by a diagnosis and is not attached to your earnings or ability to work. This coverage, known as CI, aims to safeguard individuals from the financial burdens that often accompany a diagnosis of a life threatening illness. When you purchase critical illness insurance, you essentially provide yourself with financial protection, in the event that you develop a serious illness as named in the policy. The Benefits Edge Insurance recognizes that illness events occur at any age and the proceeds and flexibility of comprehensive critical illness coverage can pay debts and living expenses, assist in recovery, safeguard retirement income, fund a replacement manager in the case of a business and allow you to concentrate on healing instead of your finances. We represent many insurers and can find the right coverage for you at an affordable premium.

At The Benefits Edge Insurance, our goal is to alleviate the additional stress of financial pressure with critical illness benefits. With comprehensive coverage, services are there to help you navigate the complexities of a health crisis, ensuring that you have the support you need when it matters most.

How Does Critical Illness Insurance Work?

Critical Illness Insurance is designed to provide a financial safety net for individuals who are diagnosed with a critical condition as defined in the policy. The policy owner can be an individual or a business, and the insured is the person who is covered in the event of a critical illness diagnosis. When the policy owner is the insured and a diagnosis is made, the insured with the critical illness that is specified in the policy’s list of covered conditions becomes eligible to receive a lump sum benefit after meeting the provisions of the policy. When the policy owner is a business, the lump sum would be paid to the business.

Coverage For All

Though unpleasant to think about, children can develop life threatening health conditions at any time. Critical illness coverage can cover children as well as adults, and provide protection alongside complete peace of mind so that you can concentrate on what truly matters. Although it is difficult to imagine, your child can become seriously ill and you will need to make difficult financial choices so that you have the funds to properly care for your loved ones. Critical Illness coverage can provide the funds to supplement your income so you can take the time needed for doctors visits, second opinion consultations and pay for the extra cost of medications, treatment and recovery.

Lump Sum Benefit

The lump sum benefit received from critical insurance can be utilized in various ways, depending on the your needs and priorities. One of the primary uses of the funds is to cover medical expenses that are not covered by the provincial health care system or private health plans available to you. Critical illnesses often require specialized treatments, medications, and therapies, which can be costly especially if care is sought outside of your province or country. The lump sum benefit can be used to cover these expenses and ensure that you receive the medical care you need without the burden of financial strain.

Funds can be used to explore alternative, non-traditional, or experimental treatments, or to seek second opinions from medical experts outside the country. This can include travel expenses, meals and accommodations and medications which will not be covered by private or public health insurance. The lump sum benefit provides the flexibility to pursue these alternative avenues, giving you access to potentially life-saving treatments that may not be otherwise affordable.

During a period of illness, maintaining financial stability is crucial. The lump sum benefit can be used to replace lost income, cover ongoing living expenses, and ensure that your financial obligations are met. It provides a source of income during a time when the you may be unable to work or face reduced earning capacity due to being unwell, giving you time to properly recover.

Moreover, the lump sum critical care benefit offers the policy holder the freedom to make necessary lifestyle adjustments. Critical illnesses often require significant changes to one’s daily routine, living environment, and overall lifestyle. The funds from critical illness insurance coverage can be used to modify the home to accommodate special needs, hire home healthcare services, or even pursue vocational rehabilitation and career retraining if required.

Reasons Why Critical Illness Insurance is Popular in Ontario

Evolution of Medicine

Occurrences of critical illnesses, including cancer, heart attacks, and strokes are increasing. While medical advancements have improved survival rates, the financial consequences of these illnesses can be overwhelming. That’s where Critical Illness insurance plays a crucial role in protecting your financial well-being.

Critical illness insurance is designed to provide financial support when you are diagnosed with a covered critical illness. Unlike other types of insurance that focus on medical expenses or income replacement disability insurance that pays a monthly benefit, critical illness insurance offers a lump sum benefit that can be used at your discretion. This lump sum payment can help cover various costs associated with your illness, such as medical treatments, specialized care, rehabilitation, or even day-to-day living expenses.

We work closely with our clients to ensure they have the right coverage to protect themselves and their loved ones. Our experienced team will guide you through the process, help you understand the coverage options available, and tailor a policy that aligns with your needs and budget.

Business Owners Can Benefit from Critical Illness Insurance

For business owners, critical illness coverage can serve as a valuable addition to Income Replacement coverage. Unlike traditional income replacement plans that are tied to reported income for tax purposes, critical illness insurance allows you to choose the coverage amount without the need to justify it based on your T-4 or salary. This flexibility gives business owners the opportunity to enhance their income replacement strategy and ensure financial stability during critical times, especially when they do not take a salary or have just started a company.

Critical illness insurance allows business owners to plan for the future and mitigate potential risks. By structuring the policy with the business as the owner and beneficiary, the business itself is protected if the owner is diagnosed with a critical illness. In such cases, the business can use the lump sum benefit to hire a replacement, manage ongoing operations, and ensure the continuity of business activities.

Return of Premium Riders

A Return of Premium Rider can be an attractive strategy for retirement planning as it offers the possibility of receiving a refund of premiums if no claims have been made during the policy term. This can serve as a valuable asset for business owners looking to secure their financial future while still maintaining protection against critical illnesses. A business-owned Critical Illness policy that includes a Return of Premium Rider may have taxable considerations and a review with your accountant would be a recommended course of action.

There are 2 Refund of Premium riders available for critical illness insurance that are important to note. One rider is called the Return of Premium at Death which provides a refund of premium when the insured dies without triggering the Critical illness benefit and the other rider, Return of Premium gives the option to receive a refund of premium when the policy is surrendered at a specific date or when the insured reaches a certain age and coverage ends. A Return of Premium rider is not available when Critical Illness coverage continues to age 100.

The Return of Premium feature is appealing to many individuals who appreciate the opportunity to have their premiums returned if they have not made a claim. With this rider, your critical illness coverage can pay out in one of 2 ways: if you experience a covered condition and make a claim or if you remain healthy and do not make a claim. The Return of Premium rider can be a great boost to your retirement planning.

How The Benefits Edge Insurance Can Help Provide You and Your Family with Complete Peace of Mind

At The Benefits Edge Insurance, we are an independent broker looking out for your best interests. We work with multiple insurance providers that offer various critical illness insurance contracts. While the basic coverage across insurers is similar, there can be variations in the policy features. Some insurers may include early detection benefits, coverage for additional conditions, protection for a second critical event, or a clause for Loss of Independence Existence.

Furthermore, some insurers offer Simplified Issue Critical Illness Insurance, which does not cover pre-existing conditions but provides coverage for those individuals who do not want to go through medical underwriting and may be deemed uninsurable by traditional standards. Sometimes your immediate family member’s health can negatively affect your eligibility for coverage. Individuals who have been declined due to family health history should consider Simplified Issue Critical Illness coverage.

Why Choose The Benefits Edge Insurance?

When you choose The Benefits Edge Insurance for your Critical Illness Insurance, you benefit from our expertise and personalized service. We guide you through the process, explaining the critical illness insurance coverage specific to Ontario and ensuring that you have a clear understanding of the policy terms, conditions, and benefits.

We take the time to assess your unique circumstances, taking into account factors such as your age, health history, and specific needs. This allows us to recommend the most suitable critical illness cover options that align with your budget and provide the necessary protection against critical illnesses.

With The Benefits Edge Insurance, you can rest assured knowing that you have a trusted partner on your side. We are dedicated to helping you secure the critical illness insurance coverage you need to provide financial peace of mind and protection for you and your loved ones. Contact us today to speak with one of our experts today and get started!