Personal Life & Health:
Critical Illness Insurance
If you are diagnosed and survive an illness covered by your insurance plan, Critical Illness Insurance will provide you a lump sum payment. Critical Illness Insurance ensures extra financial security so you can concentrate on your health and recovery and spend less time worrying about money.
Why do I need Critical Illness Insurance?
This type of insurance complements other benefits like Extended Health Care and Long Term Disability Insurance. Critical Illness Insurance provides a lump sum payment, regardless of your ability to work, and serves to alleviate the stress of financial burden due to critical illness.
Keep in mind that critical illness can occur at any age, typically catching individuals off guard. More than ever, individuals are surviving illnesses that were once considered fatal. With Critical Illness Insurance, you can protect yourself and your family. In addition to the lost time at work to care for oneself, a spouse, or a child, there are other costs not covered by the government that Critical Illness Insurance can help with. This includes new drug treatments, travel expenses, home alterations to accommodate a changing lifestyle, child care costs, and more.
Consider this: if you were to get seriously sick tomorrow and could no longer work, would you be able to keep up with your bills in addition to paying the costs associated with your illness? What would you and your family do?
Moreover, the average age of a benefit recipient in 2009 was 49 years old. The average time their policy was in force was five years with an average claim amount of $73,371 paid.
What kind of coverage is available?
Coverage is available for both adults (ages 18-65) and children (30 days-17 years). Additionally, different group plans are available with full payout (once the benefit for the illness is paid, the policy ends) and partial payout (once the benefit for an illness is paid, the policy continues and you are able to make a claim for any of the full payout illnesses and conditions).
What’s covered under Critical Illness Insurance?
- Heart attack
- Aorta surgery
- Major organ transplant
- Major burns
- Major organ failure requiring transplant
- Kidney failure
- Alzheimer’s disease
- Loss of speech
- Parkinson’s disease
- Coronary artery bypass surgery
- Multiple sclerosis
- Loss of independent existence
- Benign brain tumour
Six Functions of Daily Living
If you cannot complete two or more of the Function of Daily Living, then the insured would qualify for benefits:
- Bladder and Bowel Continence
According to the Canadian Cancer Society:
- 40% of women and 45% of men will develop cancer at some point in their lifetime
- 30% of new cancer cases and 17% of cancer deaths will occur adults ages 20-59, in their most productive years of employments and while raising their families
- 6,500 Canadians ages 15-39 are diagnosed with cancer annually
Will I be taxed?
While there are no specific income tax laws for Critical Illness Insurance, based on current tax laws, if the policy is owned by and the benefit is payable to an individual, income paid from Critical Illness Insurance should not be taxed.
Life Insurance, Critical Illness Insurance, Long Term Care Insurance: issued by Sun Life Assurance Company of Canada