Canadians younger than 75 are more likely to become critically ill than to die. Critical illness can happen to you or anyone you care about. While you may have safety nets in place to cover actual medical bills, you will still have to deal with other costs in the form of lost income or the inability to pay bills and debts.
If you suffer a heart attack, stroke, cancer, major organ failure or other serious ailments, your insurance policy should stop you from worrying about these costs so you can focus on recovery. Most policies cover up to 25 of these illnesses. Upon diagnosis, you can get a lump sum benefit that will allow you to do any of the following:
- Keep your other savings or investments such as your RRSP intact;
- Take care of your mortgage, loans and other debts;
- Pay for medical treatments not covered by your existing health plans;
- Compensate your lost income; and
- Get help running your business.
Critical illness policies may come in different forms, including term and permanent insurance solutions. You may choose which benefits you would like to include in your policy, based on your needs, lifestyle and preferences.