Many of us have experienced the effects of a serious illness, whether from a family member, friend, or colleague. We often think it will not happen to us. Nevertheless, reality can be shocking and life-altering. Critical Illness Insurance can offer a way to alleviate the financial burden that follows a life-threatening diagnosis.
What It Is
Critical Illness Insurance is a tax-free, lump-sum payment to a person diagnosed with a serious illness. It is compensation to a policyholder with a specific illness clearly listed in their policy. This coverage is either combined with a Term-Life policy, a Stand-Alone policy, or even part of your group benefits plan. Most insurers offer it, and the peace of mind is unimaginable.
The insured member can use the lump sum in any way they want, stress-free, during recovery time:
- Supplementary care
- Food preparation
- More comfortable bed
- Restful household furniture
- Even a family vacation
How It Works
Following a diagnosis of a covered critical illness, the individual must survive 30 days and complete the claim forms. This is where Simplified Financial can help. The medical care team/person must complete forms, as well. Once completed, the information goes to the insurance provider for review.
After the provider has reviewed and approved the claim, they issue a cheque paid to the individual. The individual can use the funds entirely as they wish. For many, they use it to assist with the ongoing care of their loved ones and themselves.
*The funds do not affect EI, CPP, or WCB benefits. Neither will it affect OAS or any clawbacks.
Recently, we had two young women come to us with the same type of cancer diagnosis. However, the outcome was completely different. One had Critical Illness Insurance, and the other did not.
Covered by Critical Illness Insurance: This woman was able to apply. She received her lump sum and knew that her financial situation was going to be fine. She was able to rest at home, and not having the financial stress aided her in a quick recovery. She had peace of mind. She placed her additional funds into her TFSA, and she returned to her employment fully rested and well, both physically and mentally. She did not need to trouble her family for additional funds or support, and for that, she is very grateful. The Critical Illness policy was one of the best things she did for her family and herself.
Not covered by Critical Illness Insurance: Ten years ago, this woman’s advisor told her that she would never qualify for Critical Illness Insurance, as she was overweight. The insurance provider did not consider her a good risk. She was angry and upset about this situation and did not apply again. Truthfully, she did not think she could.
Since then, insurance companies have made improvements. In the past, a provider might have declined an individual due to their size or family history. This is no longer true when it comes to Life and Critical Illness Insurance. Today, there are more options.
At the time of her diagnosis, this woman had no money. She required a great deal of help and support from various family members and organizations. Later, when she spoke with an advisor from Simplified Financial, she stated that Critical Illness Insurance would have been extremely helpful during that challenging time. She mentioned that it would have helped the mental part the most. The lump-sum would have solved her financial problems, and she would have worried less. Her recovery would have been much better with the additional funds and peace of mind.
If she were able to apply for this benefit now, she would.
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