Real Life Example: Why You Need Critical Illness Insurance
Loretta was diagnosed with lung cancer and had to undertake a very aggressive treatment. Her illness had lasted thirteen months of which most of the time was spent in the hospital. In the thirteenth month she passed away leaving her husband, children and family without a wife, mother and daughter. Four years previous to her diagnosis she had met with her insurance advisor to review the families insurance program. At that time it was decided that Loretta and her husband would both apply for Life Insurance and Critical Illness insurance.
They wanted Critical Illness insurance as they had both had personal experiences with friends and family that did not have adequate insurance coverage and they saw how it dramatically affected them financially while trying to treat a serious illness. They decided that if one of them was to get critically ill they wanted a minimum of two (2) years income coverage and and some extra coverage to pay off any smaller debts or emergencies. In this case they each applied for $250,000 of critical illness insurance coverage.
Once Loretta was diagnosed with lung cancer she waited a thirty (30) day survival period and then working with her advisor sent in her claim to the insurance company. The insurance company approved the claim and a cheque was sent to Loretta in the full amount of $250,000. It took about thirty (30) days from the submission of the claim to receive the policy proceeds. You can imagine how relieved and glad they both were they had taken out this insurance even though the husband was somewhat reluctant at the time of application. After all the events that occurred he did say that the proceeds of the policy were able to repay the balance of a small auto loan and the balance replaced both his and Loretta’s income while she was getting treatment. He was also grateful to be able to spend the last days with his wife and family without worrying aboug how bills were going to be paid, depleting their retirement funds or possibly go into debt.
The illnesses listed below are examples of some illnesses that could be covered by a critical illness policy:
Cancer, Stroke, Heart Attack, Alzheimer's, Coma, Kidney Failure, Multiple Sclerosis, Loss of Speech, Deafness, Loss of Limbs, Loss of Speech, Blindness,
Aortic Surgery, Aplastic Anaemia, Bacterial Meningitis, Severe Burns, Parkinson's Disease, Paralysis, Benign Brain Tumour, Major Organ Failure on List,
Coronary Artery Bypass Surgery, Occupational HIV Infection, Heart Valve Replacement, Major Organ Transplant.
What is your risk in becoming critically ill? Click here to find out.
How Does Critical Illness Insurance Work?
When someone is diagnosed with a covered illness and meets the survival period (typically 30 days) and requirements of the policy, the insurance company will
pay out a lump sum to the insured for the value of the insurance policy that was applied for, approved and put in place.
Let’s take a look at critical illness claims
Why Do You Need Critical Illness Insurance?
When you are diagnosed with a critical illness there are several financial considerations:
- Will your income stop or will you be able to continue working?
- Will your monthly expenses stop?
- Will you want to stop saving for retirement, children’s education, or savings?
- Will you have extra expenses needed to get the medical treatment or medication?
- How long will your treatment last?
- After treatment will you be able to continue work as before?
- Will your spouse and family continue working while you are receiving treatment or would you want them by your side?
- Will you be able to concentrate on recovery while dealing with the stress of financial concerns?
Critical Illness Experience and Expertise
If you would like to assess how much critical illness insurance you may require please fill out the need analysis form. If you are having trouble completing the need analysis please contact us directly and one of our advisors will walk you through the assessment to completion.
Should you already know how much critical illness insurance you require please complete our online quote form to get started.
You may have critical illness insurance in place but haven't been in contact with your advisor in years or you may require a review to see if you have the proper
coverage or protection against escalating costs, if so please contact us and we will have one of our advisors will contact you directly. We look forward to helping you understand your critical illness insurance needs!