Critical illness insurance was first developed by Dr. Marius Barnard in 1983 to offset the financial burden associated with developing a critical illness. Medical advances have created an increased need for critical illness insurance; more individuals are surviving life altering illnesses, such as cancer, stroke or heart attack. But these advances in modern medicine have come at a cost – the increased survival rate has strained the Canadian health care system. This, coupled with the fact that many people are naturally seeking extra services and non-traditional forms of treatment, has led to a dramatic rise in cost of care and thus increasing the need for additional coverage.
As mentioned above, cost of care in many instances can be prohibitive and exceeds what is available in traditional group claims. That’s where critical illness insurance comes in – it pays out a lump sum tax free payment upon diagnosis of a critical illness. The money can be used to pay off remaining debt, cover experimental drugs, provide daily living assistance or depending on the size of the policy seek treatment out of country.
Leading Causes of Critical Illness Claims:
- 70% – Cancer
- 14% – Heart attack
- 5% – Stroke
- 5% – Other
- 4% – Coronary artery bypass surgery
- 2% – Multiple sclerosis
Sadly, critical illness can affect any one of us, no matter what age or gender. It usually strikes when we expect it at the least, and it unfortunately does happen to many. Canadians are more likely to experience a critical illness than they are to die before the age of 75. Critical illness insurance pays a lump sum benefit following the diagnosis of one of the covered illnesses. It offers you choices and allows you to recover on your own terms without having to search for additional financial choices to cover all the expenses. With this type of insurance, you may afford medicine and treatments that are not covered by group, personal or government plans. You will be able to replace lost income and maintain your business until you can return to work.