When faced with an illness that interrupts your employment and your income, Disability insurance is a great solution to replace your income.
But most disability plans have a waiting period of one to three months and a maximum benefit amount that is less than your regular income.
Critical Illness Insurance (CI) might be a solution that complements your Disability Insurance. CI provides a lump sum benefit payment in the event of being diagnosed with one of several critical illnesses. It can help fill the gap until your disability insurance benefits start. Critical illness insurance can be used for any expense you deem important: bill payments, specialized medical tests or treatments, out of pocket prescription costs, or a therapeutic spa vacation!
Differences between one critical illness policy and another primarily focus on the list of critical illnesses that are covered. The most basic plans might cover only 3 conditions: heart attack, cancer, and stroke. More elaborate plans might cover many more conditions:
| • Acquired brain injury • Aortic surgery • Aplasic anemia • Benign brain tumour • Bacterial meningitis • Blindness • Cancer • Coma • Coronary artery bypass surgery • Deafness • Dementia, including Alzheimer’s disease • Heart attack • Heart valve replacement or repair | • Kidney failure • Loss of independent existence (LOIE) • Loss of limbs • Loss of speech • Major organ transplant • Major organ failure on waiting list • Motor neuron disease • Multiple sclerosis • Occupational HIV infection • Paralysis • Parkinson’s disease and specified atypical parkinsonian disorders • Severe burns • Strokes |
Some people consider the most important condition to be Loss of Independent Existence. This means a diagnosis that the person cannot perform some of the activities of daily living including bathing, dressing, toileting, bladder, and bowel continence, transferring and feeding.
An insurance professional can help determine if you need Critical Illness insurance, and if so, the complexity of the policy and the amount of coverage. Like all other insurances, if you don’t need it, you shouldn’t buy it. But before you make that decision, make sure you understand your needs and the product.
We hope you will find this information valuable and will increase your financial confidence. You can always find these articles on our website www.actionfinancialgroup.com.
Karin Rimnyak, Certified Financial Planner®
Investment Advisor, iA Private Wealth
Insurance Advisor, Action Financial Group Ltd.
David Dryburgh, Certified Financial Planner®
Investment Advisor, iA Private Wealth
Insurance Advisor, Action Financial Group Ltd.
Ian Barrie, Certified Financial Planner®
Investment Advisor, iA Private Wealth
Insurance Advisor, Action Financial Group Ltd.
This information has been prepared by Karin Rimnyak who is an investment Advisor for iA Private Wealth. Opinions expressed in this email are those of the Investment Advisor only and do not necessarily reflect those of iA Private Wealth. iA private Wealth Inc. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. iA Private Wealth is a trademark and business name under which iA Private Wealth Inc. operates.
