December 5, 2018

What is critical insurance and how does it work?

If you’re not familiar with critical illness insurance and how it worksOpens in a new window, you’ll want to talk to a financial security advisor about what to expect. Here are some things you may want to keep in mind when you meet with your advisor to talk about whether or not critical illness insurance is right for you.

1. What does critical illness insurance cover?

A critical illness is a condition that could prevent you from working or carrying on your regular routine. Each insurance company covers different conditions. Certain cancers, heart attack and stroke are the most commonly covered conditions.

2. What can critical illness insurance do for me?

Critical illness insurance can give you a lump-sum payment to use however you want. You can also customize your policy to get some or all of your money back if you don't have an illness.

3. Is critical illness insurance expensive?

Everyone's idea of what's expensive and what's not is different based on their personal financial situation. Critical illness insurance can be a lot less expensive than paying out of pocket for medical expenses that aren't covered by the government health plan or your employee benefits. It's can also be a lot less costly than having to worry about paying your regular bills (mortgage, car payment, utilities, etc) while you or your spouse is in treatments or recovery. For instance, a non-smoking 35 year old could pay as low as $20 to $25 a month for $50,000 of critical illness insurance coverage.

4. Will I get the money if I make a claim?

If you are diagnosed with a covered critical condition and survive the waiting period, you’ll receive a lump-sum payment equal to your coverage amount. That money is yours to spend however you like. Cover living expenses, pay for medication that isn’t covered by the government health plan, or even take a trip when you’re well.

5. Is critical illness insurance hard to get?

Your advisor will walk you through the steps you need to take to apply for critical illness insurance. You'll be asked a variety of questions, including details about your family's medical history.

Talk to an expert

Not feeling confident in your finances? You can talk to one of our financial security advisors who will work with you to craft a financial plan tailored to your needs.

Contact an advisor