What is critical illness insurance? (video)

What is critical illness insurance?

Simply put, we’d all like to imagine a future with perfect health. But the right time to plan for the unexpected is when you're healthy. Why? Because once you become ill, your options might be limited.

Critical illness insurance is designed to help you pay costs that may be associated with certain life-altering illnesses.

It provides additional funds if you become seriously ill. This way, you can focus on your health and not your finances.

How does critical illness insurance work?

Let’s say you’re diagnosed with and survive one of the illnesses covered, as defined by your insurance policy. In such a case, you'll receive a one-time, lump-sum cash payment. You can then use that money any way you wish.

Do you need critical illness insurance?

So ask yourself:

• Do your other insurance policies like life, group health, or disability plans offer enough coverage?
• Would your retirement goals still be met if you had to take out, say, $50,000 for expenses related to a medical condition?
• Can you afford to take on the costs associated with being seriously ill? This includes things like:
  • loss of income,
  • travel to and from treatment, and
  • home-care costs.

How can critical illness insurance help you?

It can help with those additional costs that come up.

Chances are you know someone who's been affected by serious health issues. Critical illness insurance will provide you with the peace of mind of knowing you're financially protected in case it happens to you. And, it’ll allow you to focus 100% on your own recovery.

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