What is Critical Illness Insurance?
Critical Illness insurance was created over 20 years ago in South Africa by Dr. Marius Barnard, the brother of heart transplant pioneer Dr. Christian Barnard. The idea behind this “dread disease” protection was to help people finance their recovery from serious illness without having to deplete their financial resources, re-mortgage their homes, or borrow funds from friends and family.
Critical Illness insurance (CI) pays a lump sum benefit, tax free, upon diagnosis of a life threatening condition. Most comprehensive plans now cover between 20 and 24 such conditions, and some offer partial benefits for less threatening illnesses. Claims experience from various Canadian insurers tells us that most claims are for one of the “big 3” - cancer, stroke, and heart attack.
The proceeds are tax free and can be used in any way you wish – for recovery, rehabilitation, alternative treatments, modifications to your home or vehicle, to pay down debts or your mortgage, to provide your spouse the opportunity to take time away from work to help you recover, and so on.
Benefit amounts range from $25,000 up to $2,000,000.
Take action now to protect yourself and your finances from the effects of a life threatening or life altering illness.
