Critical Illness

When it comes to insurance, many people think of providing money for dependents in case of death, a monthly benefit for a disability or paying taxes owing on an estate, but have you ever thought what may happen if you got critically ill. Let’s look at a case ---

Debi was the last person in the world who expected to develop breast cancer. A vegetarian, non-smoker and fitness buff, who worked out several hours a day; she was startled to accidentally discover a lump two years ago.

After surgery, six months of aggressive chemotherapy, two bone marrow transplants and radiation treatments, Debi survived an advanced form of breast cancer.

But the family finances had been decimated.

"It collapsed every cent we had saved --- RRSPs, the children’s education fund. We were starting over like 20 year olds, except we have sky high expenses," the 35 year old mother of two said.

Debi would loved to have had "critical illness" insurance that would have paid out one time $ 200,000 –upon detection of the cancer ---to cover all those large expenses that were incurred over the 2 years.

The concept of Critical Illness insurance is that it pays out a tax free lump sum on first diagnoses of up 17 illnesses including:

. Cancer . Major Organ Transplant

. Heart Attack . Paralysis

. Coronary Bypass . Deafness

. Stroke . Coma

. Blindness . Alzheimer’s Disease

. Loss of Limbs . Occupational HIV

. Loss of Speech . Parkinson’s Disease

. Kidney Failure . Severe Burns

. Multiple Sclerosis

Coverage varies to a maximum of $ 2,000,000 --average $ 142,000. There is a set specific criteria that specifies whether you have been diagnosed with the illness. The conditions of payment are that you must have survived the illness for 30 days after diagnoses---90 days for cancer.

In 1997 in Toronto’s leading cardiac emergency hospital --- 91% of the patients who were admitted with a heart attack would have qualified for a Critical Illness pay out --9% would have been a death claim.

Similarly –75% of all stroke victims survive and 60% of stroke survivors are left with a disability.

In other words with the medical profession now saving more and more people and prolonging their life ---It’s almost more important to get critical illness insurance than life insurance.