Why is Critical Illness Insurance important?
What is Critical Illness Insurance?
Critical Illness insurance (also referred to as Dread Disease insurance) is designed to pay a lump sum cash payment to the policyholder if diagnosed with one of the illnesses specified on a predetermined list (for example, cancer, stroke, heart attack, multiple sclerosis, Parkinson’s disease; NOTE: every insurer and product is different, so be sure to know what is covered and to shop around to find the right product and company at the right premium that works for you).
Should I buy for my kids?
Yes, absolutely. Each year, our hospitals hold multiple fundraisers for children with critical or terminal illness, and having Critical Illness coverage can help in a number of ways:
- allow you to take time off from work so you can focus on your child and be there for him or her;
- provide you with funds needed to spend as you see fit (e.g. to cover off any uncovered medical expenses; or to have a mini-vacation to promote health and wellness and togetherness of your family)
Return of Premium options available
Hopefully, nothing will happen to you or your children. We buy insurance in case we need it, we have it. With a Return of Premium enhanced product, after a certain point, you can opt for a refund of a portion of premiums paid. For some products, after a longer period, you may even be able to retrieve full premium back!
For your children, there may be even more flexible return of premium options available allowing you to request a portion of the refund at a certain age, for example, age 25 – this could be helpful for your child to go towards student loans, or perhaps a down-payment on a car or house.
Why is it important?
The main benefit of Critical Illness insurance is added protection for you and your family. A lump sum benefit will be paid in the event of an insured illness. As Brokers, we have heard of close-to-home stories and we will be adding to this blog examples which you may find useful in convincing your friends to also take steps today to protect their families. We’re hoping this general article will be motivating enough, but because we believe in its importance, we will keep adding to this – we want the message out there for families to get protected – it’s available and there are many options and you can choose the amounts to purchase. Whether you buy from us or elsewhere, the most important thing is that you have coverage in the event of illness.
A means for saving for my children?
There are a number of different ways you can save for your child’s future: savings, investments, RESPs (Registered Education Savings Plan) and as stated above, an unused Critical Illness insurance policy with a Return of Premium enhancement can be a source of future funds.
Don’t wait until it’s too late – call now to get a quote
Buying some insurance today is better than no insurance. Ask about possibilities for increasing coverage and what is required and when – just so you can get some protection in place today.
- REMINDER: Every insurer and product is different, so be sure to know what is covered and to shop around to find the right product and company at the right premium that works for you and your family.
- Revisit your policies periodically so that you remember what you have and if you need to top up or adjust, take steps to contact your Broker or Insurer for assistance or next steps. Also, the more you revisit your policies, the more you will come to understand your policies and feel comfortable and gain that peace of mind.
- If you have questions, ask your Broker or Insurer for help. For example, choosing a beneficiary – should you name one or more than one? should they be revocable?
- Mark your calendars of important dates. You want to make sure your premiums are paid on time to avoid lapses or cancellations. As well, you want to mark the dates of any possible refund of premium opportunities, or for any whole life type of insurance products are there certain dates that will allow you to re-invest dividends?