• Adam Stapley

Life Insurance: Critical Illness Plans

In our series of articles on life insurance, we learned that some Canadian life insurance policies contain critical illness plans. This article discusses what critical illness plans are and who should have them. We’ll also discuss where you can save money by finding the lowest life insurance rates in Canada.


Two peoples' hands clutching

Critical illnesses or sudden tragedy can strike at any time, putting a strain on your monthly budget. While this article can give you a quick overview of critical illness plans, we recommend speaking to an expert to determine if an individual life insurance strategy is right for you.


What is a Critical Illness Plan?


As the life expectancy of Canadians continues to increase, the likelihood that you or your loved ones will find yourselves affected by a significant disease also goes up. To protect Canadians from the financial burdens associated with sudden illnesses, Canadian life insurance companies have developed policies to ensure adequate protection of their customers.


A critical illness plan is an optional feature of some life insurance policies in Canada. These types of policies can help protect you, your family and your loved ones if you are unable to work due to the symptoms of a major disease or sickness.


What if you don’t recover?


Many critical illnesses become chronic or have a permanent impact on your ability to work. This fact leaves many Canadians asking “What if I don’t recover from a critical illness?”. As the instances of long-term diseases increase, insurers have created life insurance policies that can protect Canadians if they don’t recover from a critical illness. These policies have a clause that allows the insurance policy to convert from a critical illness plan into a long-term care plan.


Long-term care plans help cover the costs of care associated with the prolonged deterioration of someone’s health. Usually, these policies help provide coverage for Canadians in advanced stages of life. But, should the insured develop a condition at any age which requires long-term care, this extra coverage can help limit the monetary impact these diseases pose.


Who Should Have a Critical Illness Plan?


Person in hospital gown holding a cell phone

Sudden illness can strike Canadians at any point during their life. For this reason, almost all Canadians should carry some type of critical illness plan. For Canadians carrying large loans and mortgages, these plans ensure they can pay their budgetary obligations. For those with loved ones who rely on them for support, it is even more important to carry coverage against unforeseen conditions.


For those who have prior health issues or family histories of diseases such as heart disease and certain types of cancer, it may be more challenging to find coverage against these types of diseases. In the case of prior or family history of health issues, the premiums of critical illness plans are more expensive due to the higher likelihood that the insured will file a claim.


Where Can You Find the Lowest Rates for Critical Illness Plans?


Like most Canadians, we enjoy saving as much money as possible. One of the best ways to save money on critical illness plans is to shop around for the lowest life insurance rates in Canada. Using an insurance broker helps to ensure premium third-party advice and opportunities to access lower life insurance rates. The expert advisors at PolicyMe provide high-quality advice and some of the lowest life insurance rates in Canada.


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