5 critical illness insurance myths
Is critical illness insurance only for others? Here are 5 myths revealed that will convince you that this insurance should be part of any sound financial strategy.
You insure your vehicle, your home, your life… but what about your health? Are you relying too heavily on your guardian angel?
Here are 5 statements that may apply to you and will help you look at critical illness insurance differently.
1. It will never happen to me
Despite medical breakthroughs, a longer life expectancy and healthy lifestyle choices, a critical illness can strike anyone, from cancer to heart disease.
The latest statistics from the Canadian Cancer Society tell us that on average:
- 555 Canadians are diagnosed with cancer every day
- 216 Canadians die from cancer every day
- 2 out of 5 Canadians are expected to develop cancer during their lifetime
- Over 60% of Canadians diagnosed with cancer are expected to survive for 5 years or more after a cancer diagnosis
As for heart disease, the numbers are little lest staggering:
- about 1 in 12 Canadian adults lives with diagnosed heart disease
- the death rate of people with known heart disease has decreased by 23%
2. I have group insurance
Not all employers have critical illness coverage in their group insurance plan.
So be sure to check!
If not, individual critical illness insurance is an excellent complement to your group plan.
In addition to covering prescription drugs and treatments, it helps pay for expenses related to your illness, like:
- home care
- housecleaning services
- child care
3. I’m covered by the provincial health insurance plan
Many believe that the public option in their province covers all prescription drugs and treatment.
Public plans do note reimburse ALL the prescription drugs offered on the market.
It’s in this situation that critical illness insurance pays out a benefit that you can use how you see fit.
4. I have enough savings
You saved up a lot of money… why dig into your savings that are meant for your retirement or other life projects, likes a trip or your dream kitchen renovation?
Critical illness insurance will pay out a tax-free benefit when you a diagnosed with a critical illness.
That way, your savings will continue to grow during your recovery.
5. Critical illness insurance is expensive
This depends on your financial situation and what you consider to be expensive and affordable.
For example, a 35-year-old non-smoking woman will pay less than $58 per month for critical illness insurance with $50,000 in coverage.
Keep in mind that it is more cost-effective to underwrite critical illness insurance than pay all the additional expenses incurred as a result of your illness.
The following factors will decrease your insurance premium:
- insurance amount
- healthy lifestyle habits
- family medical history
For an even lower premium, opt for term critical illness insurance that can become permanent later on or reduce the insurance amount.
Plan for the unexpected with your financial advisor
Don’t let a critical illness drown you in debt.
Let your financial advisor help you make the best decision regarding critical illness insurance.
*Exclusions and limitations may apply depending on your insurance policy.