Critical Illness Insurance
What is Critical Illness Insurance?
Coverage Details
Here are the coverage details for critical illness coverage:
- Term Coverage: This policy offers coverage against critical illness or injury for a specified term, say 10 or 20 years. Claim must be filed during the term to ensure coverage can be obtained.
- Permanent Coverage: This is a lifetime coverage, and you can benefit from it for a lifetime.
Typical Payout Structures and Amounts
The amount of payout depends on your critical illness, the coverage you have selected, and the policy type you have purchased. Every policy differs, and you must choose one carefully.
Exclusions and Limitations
There are certain limitations and exclusions from the coverage, which include:
- Self-inflicted injury
- Pre-existing conditions
- Conditions caused by drug or alcohol abuse
- Illness diagnosed during waiting periods
Key Features and Benefits
The key features and benefits of getting critical injury insurance in Canada are:
Medical Coverage
All medical expenses, from hospitalization to prescriptions are covered in the policy. Even hospitalization is not required to claim the coverage. A mere diagnosis can get you the lump-sum payout.
Coverage of Non-Medical Expenses
Serious illness insurance payout is a lump-sum amount which can also be used for non-medical expenses such as loan repayment, personal expenses, child care, etc. It is meant to make your life easier after the diagnosis.
You must remember that a critical care insurance coverage payout is given in lump sum form, and there is no limitation on its use. You can use it at your discretion.
Criteria and Eligibility
Age Limit
The age limit for buying this cover is that you must be between 18 and 65. A medical examination might be required for the same.
Waiting Periods
The waiting period differs from policy to policy and is usually between 30 days to 90 days. If you are diagnosed within this period, you won’t be able to make your claim.
Cost and Affordability
- Age
- Health status
- Lifestyle choices (if you are a smoker, consume alcohol, and engage in activities that pose a threat to your life, including being a fireman, the cost will be higher)
- Coverage amount
Every insurance service provider offers different benefits, some more than others, and depending upon their services, the cost of the insurance coverage differs.
Comparison with Other Insurance Products
This insurance coverage type is different from other insurances. The distinctions between them are discussed below:
Difference Between Critical Illness Insurance and Health Insurance
Health insurance offers benefits towards medical expenses only in case you fall ill and need to be hospitalized. On the other hand, serious illness insurance offers a lump sum amount when you need immediate medical attention to avoid death.
The major distinction between the two is that you can claim health insurance once you are hospitalized, but in the case of the latter, you can claim it right after you are diagnosed.
Difference Between Serious Illness Insurance and Disability Insurance
The difference between both is that disability insurance offers help when you are disabled due to an injury or illness and cannot work anymore. It is paid to compensate for your lost income, say 60-70% of your past salary. On the other hand, the coverage amount in a critical illness policy is a fixed amount you choose when buying the policy.
It is to be understood that critical injury insurance is not a substitute for disability or health insurance. In fact, it is a complementary insurance which fills the gap between the protection.
Claim Process and Settlement
Filing a claim for this insurance is the same as filing any other insurance claim. The steps involved are:
- Notify your insurer of the diagnosis.
- Gather your documentation and fill out the required forms.
- It takes a while to assess the claim, after which your claim might be accepted or rejected.
Challenges in Claim Settlement
There are times when you might face delays and challenges in your claim settlement due to the following reasons:
- Improper documentation
- Disputed diagnosis between the hospital and the insurer
- Delays in filing the claim or gathering the medical record.
Choosing The Right Policy
Choosing the right policy can make all the difference in your life. Also, you need a reliable agent in Surrey who can do all the mundane work for you, including research and finding out the best policies in Canada.
Coverage Options and Conditions
Read the fine print of every policy before signing the dotted line. Check out the conditions and the coverage options, the illnesses included and their waiting period.
Premium Costs
Expensive policy coverage isn’t always better. Obtain multiple critical illness insurance quotes, check their features, and decide.
Exclusions and Limitations
Different policies have different exclusions and limitations; you must check it out carefully before choosing it.
Claim Settlement
Always check out the claim settlement percentage of the insurer. It suggests their reliability.
Customer Service Quality
Explore their websites and check out customer reviews and testimonials about their customer service and overall service.
Frequently Asked Questions
The answer to this question differs from person to person and their needs. Before deciding a coverage, you must consider your financial obligations, outstanding debts, medical expenses, existing coverage, and other miscellaneous expenses.
No, it is not tax-deductible.
No, the lump sum payout you receive from such insurance is not taxable in Canada. You can use it for both medical and non-medical expenses.
The difference between both the insurance is pretty obvious. Critical health insurance pays out in case of the diagnosis of a critical illness, such as cancer, AIDS, stroke, heart attack, etc. The disability insurance pays you if you are disabled and can no longer work. While critical illness coverage is a lump sum payment, disability insurance is a certain percentage of your lost income.
Why You Should Consult a Professional?
It can be an overwhelming experience buying an insurance policy on your own when you don’t know much about the same. Thus, we advise you to consult one of our experienced agents to assist you. It is easier to navigate the complexities of insurance policies with an expert by your side.
At SafeInsure, you are our priority and we boast of having the best professionals in Surrey onboard with us in . You can rely on us to help you get the best critical illness coverage you need.
