What is critical illness and how does it work?

Hundreds of thousands of Canadians were diagnosed with cancer last year and just as many had heart attacks. As it’s largest city, Toronto, Ontario in Canada saw it’s fair share of cancer and heart attack diagnoses as well. Getting over a critical illness can be one of the most challenging times for you and your family. Financial obligations such as remaining financially stable, supporting your family and unexpected medical bills can add stress when you need to concentrate on recovery. 

Available in Toronto, Ontario and in fact all of Canada, is a unique type of insurance product called Critical Illness Insurance which pays insured individuals, a lump sum of cash in the event they survive a covered critical illness.

So exactly what is critical Illness Insurance and how does it work in Canada? Critical illness insurance can help cover the expenses necessary to survive a major illness. By owning a critical illness insurance policy in Canada, you’ll have peace of mind knowing that in the event of a life-threatening illness, you and your family will be able to help pay your medical costs, basic living expenses. The money from the critical illness insurance will also help you pay down debt, seek treatment outside of Canada, or could be used for whatever you choose. There are no restrictions.

It's also important to note that the lump sum cash benefit is paid in addition to other coverage you may have in your employee benefit plan. And unlike disability insurance, critical illness insurance is paid regardless of your income or ability to work.

Whether you purchase your policy in Toronto, Ontario or anywhere else in Canada, there are important details to know about what is covered but also what is not covered about critical Illness insurance and how it works in Canada. For example, coverage may depend on the degree of severity of the condition. For instance a diagnosis of a cancer that is non life threatening and can be easily treated and is expected to be recovered from quickly, like a superficial skin cancer that has not spread, can make it ineligible to be claimed. In addition, generally speaking, with a few exceptions, a critical Illness insurance policy in Canada cannot be obtained to cover a pre-existing condition. Some critical illness insurance plans in Canada consider your family history and your BMI (body mass index) as part of the underwritng process. Whereas some plans available in Toronto, Ontario and throughout Canada enable you to purchase critical illness insurance instantly, on-line, with very few medical questions on a simplified issue basis. Make sure when you weigh your options and consider what is critical Illness insurance and how it works in Canada, to choose the plan that is just right for you.