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Critical Illness Insurance


Critical illness insurance provides a lump sum tax free amount when you need it most to ease your financial burden. No one plans to be diagnosed with a prolonged life threatening illness. Dealing with an illness is stressful enough emotionally, critical illness insurance makes it more bearable financially. Unfortunately it can happen to anyone even if you are healthy. Let’s look at the facts, 1 in 3 Canadians will develop a life threatening cancer. Many drugs used in the treatment of cancer are considered "experimental" and are not covered by your Provincial Healthcare Insurance Plans. The average age of a person who goes on claim for a critical illness is 43 years old.

A critical illness does not have to become a critical financial crisis for you and your loved ones. You can recover from your critical illness with comfort and less stress financially.


Two Types of Critical Illness Insurance Policies

There are two types of critical illness insurance policies offered by insurance companies, basic and comprehensive.

  1. A basic critical illness insurance policy covers heart attack, stroke, and cancer, which make up 95% of all claims.

  2. A comprehensive critical illness insurance policy covers up to 25 illnesses or conditions. Each insurance company has its own unique offering of covered illnesses or conditions. 

Critical Illness Insurance will allow you to:

    1. Get the latest treatments and the best services medical science has to offer;

    2. Allow your partner to take time off during your recovery;

    3. Recover financially after surviving a critical illness;

    4. Spend your last days doing something you love (e.g. travel, charity etc...);

    5. Pay for private nursing care;

    6. Be able to afford semi or early retirement;

    7. Pay off your mortgage, pay for child care, hire domestic help;

    8. Modify your home for better mobility;

    9. Take time off to fully recover before returning to work.

The most common insurable illnesses or conditions included in a comprehensive critical illness policy are as follows:

    1. Heart Attack

    2. Stroke

    3. Cancer

    4. Coronary Artery Bypass surgery

    5. Paralysis

    6. Multiple Sclerosis

    7. Major organ transplant

    8. Major organ failure on waiting list

    9. Loss of independence

    10. Late onset diabetes

    11. Coma

    12. Occupational HIV Infection

    13. Deafness

    14. Parkinson's Disease

    15. Alzheimer's Disease

    16. Loss of speech

    17. Kidney failure

    18. Motor Neuron Disease (ALS)

    19. Blindness

    20. Severe burns

    21. Benign brain tumor

Features of Critical Illness Insurance Policies:

    1. Provides a lump sum tax-free benefit payable 30 days after you are diagnosed with an insured illness or condition.

    2. Is independent of your ability to work.

    3. Advances in modern medicine have made it possible for people to survive critical illnesses. Unfortunately those without insurance don’t always survive the financial burden of dealing with a critical illness, they recover their savings don’t. Critical illness insurance will provide immediate financial relief to get the best treatments possible not covered by your Provincial Healthcare Insurance Plan.

    4. Must survive at least 30 days after being diagnosed with a critical illness in order to collect.

    5. If the insured dies, all premiums are refunded to the beneficiary (standard feature for most critical illness insurance policies).

    6. Available between the ages of 18 and 65.

    7. Can be purchased as a stand-alone policy or as an additional rider within a permanent life insurance policy.

Benefits & Coverage Options:

    1. Benefits ranging from $25,000 up to $2,000,000.

    2. Coverage can be for 10 years, to age 65, to age 75, or to age 100 (permanent coverage).

    3. Return of premium: all or a portion of the premiums paid will be returned to you if you do not claim after 10 years or age 75 with most insurance companies. The return of premium option is also a great way to save for retirement and to provide money for a critical illness after your policy terminates. 

    4. Waiver of premium: a safeguard against losing your policy. If you have an accident and become disabled, you may no longer earn enough income to pay your critical illness insurance premiums. With a waiver of premium option, after a period of disability of 6 months with most policies the insurance company will waive all of your premium payments so you don’t lose your coverage. Some companies will also refund the premiums you paid over the last 6 months.

Why you need Critical Illness Insurance

After a critical illness a person often experiences a permanent change in their lifestyle and their ability to do the same work as they did before. Their income declines, they may not be able to return to their full time employment. If you are a small business owner, your business suffers or has to be closed permanently.

Purchasing a $500,000 policy may seem like a lot, however in many cases it is not enough money to deal with a permanent change in your income. Depending on your lifestyle and income prior to being diagnosed with a critical illness the costs can easily exceed a million dollars.

If you would like to purchase a critical illness insurance policy or already own a policy and are unsure if you have enough coverage a Stone-Hedge Financial Group Inc. insurance broker will guide you through this process. The most common shortfall is not purchasing enough coverage or not having any coverage at all.

Buy enough coverage to protect yourself and your loved ones. The cost of not having a critical illness insurance policy can be greater than you can afford to pay for.


Contact Us for a Critical Illness Insurance Quote


The information provided on this web site is intended for general information only. It should not be construed as legal, accounting, tax or specific insurance and investment advice. Clients should consult a professional advisor concerning their situations and any specific insurance and investment matters. While reasonable steps have been taken to ensure that this information was accurate as of the date hereof, Stone-Hedge Financial Group Inc. and its affiliates make no representation or warranty as to the accuracy of this information and assume no responsibility for reliance upon it.

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