Critical Illness Insurance

Critical Illness Insurance is designed to provide assistance to an insured person who has been diagnosed and survived 30 days with one of a predetermined number of critical illnesses.

Definitions of such illnesses vary, depending on the insurance carrier.
       Standard coverage:

• MS
• Alzheimer's
• Parkinson's
• Coma
• Severe Burns
• Up to 22 pre-defined illnesses

The benefit is paid out in a pre-determined lump sum, which the insured can use in any way they like.  The cash is often used to fund treatment for the illness.  As access to the Canadian Health Care System becomes more limited, this product has become a popular way to fund treatment in the United States.  Other common uses for the cash benefit are paying off debts, hiring childcare, etc.

Most contracts have a built-in provision to refund all paid premiums to the insured's beneficiary in the event of death by any cause. The insured also often has the choice to pay an extra charge and receive a full refund of all premiums paid at a predetermined point if no claims have occurred.