Significance of Critical Illness Insurance | What Is It? Who Needs It?
Our lives are uncertain, and any changes can strike at any moment. Unexpected events remind us of life’s inherent uncertainty. It’s the uncertainty that drives us to seek security and preparedness to face the unknown. According to research, cancer, and heart disease are the two most common leading causes of death among Canadians.
We are unsure if we will awake the next day. It’s especially scary if we have family who depend on us; in that case, it’s our responsibility to purchase an insurance policy. The significance of critical illness insurance is extremely important because it provides financial security and peace of mind to individuals who are facing several health challenges. Read this article to learn why every Canadian should purchase this policy for themselves and their families.
What is Critical Illness Insurance?
If you are diagnosed with a serious health condition, critical illness insurance will provide a tax-free payment. The fund will help Canadians in 2 ways –
- Help them to maintain the quality of life
- The family members can consider the treatment options available within the amount.
Usually, critical illness insurance is purchased as a stand-alone policy, but you can include it as an extension of your existing life insurance policy.
Do You Need Critical Illness Insurance?
Critical illness insurance covers several medical conditions, but the specific conditions may vary from policy to policy. The following conditions are,
- Heart attack
- Stroke
- Cancer
- Alzheimer’s disease
- Motor neuron disease
- Multiple sclerosis
- Parkinson’s disease
- Cystic fibrosis
- HIV/AIDS
- Major burns
- Multiple sclerosis
Indeed, the significance of Critical illness insurance in our lives cannot be overstated. FYI, you should review the policy terms and conditions carefully before purchasing the policy to get the best out of your money.
Is Critical Illness Insurance Taxable in Canada?
Critical illness insurance is not taxable in Canada at all because the premiums are paid for the policy with after-tax dollars. Also, the CRA or Canada Revenue Agency has stated that critical illness insurance benefits are not considered as income. If you want to purchase critical illness insurance in Canada, you must compare different policies and choose one that meets your individual requirements.
Why Do You Need Critical Illness Insurance?
There is no doubt that dealing with a serious health condition is not a piece of cake; it impacts your life significantly. You may have to take time off work frequently, which most of us can’t afford, thanks to Canada’s expensive daily cost. That’s why the significance of critical illness insurance is paramount. The money can help you pay for,
- Your medical bills
- Child care,
- Mortgage
- Monthly bills
If you want to learn more in detail, contact an experienced critical illness insurance provider in Mississauga immediately.
How Does Critical Illness Insurance Work in Canada?
Your insurer will pay you a lump sum after you are diagnosed with a serious health condition. The money you can use to cover the expense of your treatment and other costs associated with your illness. When you apply for this policy, the insurance company will analyze your health and lifestyle. Remember that the premium rate of your policy depends upon several factors, such as
- Your age
- Health
- The coverage amount you select.
Keep in mind that in some cases, you must survive for a certain period after being diagnosed with the illness. Usually the survival period is typically for 30 or 90 days.
What are the Advantages of Critical Illness Insurance in Canada?
Critical illness insurance will help you and your family to cope with the financial challenges at the critical moment.
- Critical illness insurance offers several advantages, including
- provide you with financial security
- give you peace of mind that you will get the best possible treatment
Contact Us!
The significance of critical illness insurance is extremely important in our lives. If you want to protect your family from financial problems during a medical emergency, contact us at Adi & Adi Financial.