Critical Illness Insurance - What it is & How it works

Geoff Cook - CFP, CHAIP

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Critical Illness Insurance is a protection against serious illness or sickness. The most common illnesses covered are Heart Attack, Cancer, and Stroke. Many policies will cover up to 22 illnesses.

The insurance pays a lump sum tax free amount of money should someone be diagnosed with a serious illness.

When shopping for this product you need to know the following...

- Know how much coverage you want. The rule of thumb has been three years of income, but we believe something is better than nothing. Often times budgets come in to play, and people buy what they can afford to buy.
- Decide which product you want to buy. Similar to Life Insurance, you can purchase both term policies and permanent policies, and there are a variety of different riders available.
- Determine which company will offer you the best policy given your options and budget.

We believe if possible it is very important to own a policy that has ''Loss of Independance'' included in the definition of coverages that are included. This definition will provide coverage should you be unable to perform 2 of 6 activities of daily living or become cognitivly impaired.

Critical Illness Insurance has been going through constant changes since it came out due to the unknown future of Canadians health situation, and serious illness becoming more common. This product costs more than life insurance because of the likely hood of claim.

- For a calculator to help you decide how much Critical Illness coverage is appropriate click here
- Contact us for a free no obligation Critical Illness Quote from all the Critical Illness providers in Canada.
- To read a recent report on Heart Disease click here
- To see a report on Critical Illness claims in Canada click here

When dealing in financial matters, you are urged to consult an advisor for legal, tax or investment advice. Every effort has been made to present information in a clear, exacting manner. However neither the publisher nor the authors can be held responsible for any losses incurred due to the actions of any individual as the result of this post or any errors or omissions contained herein.

Infinite Financial places mutual fund transactions through Banwell Financial Inc. and Life Insurance transactions through Bridgeforce. To learn more about these relationships - click here

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