Critical illness benefits are payable when the insured is diagnosed with one of a number of covered illnesses. Unlike a monthly disability benefit which is designed to replace income this type of benefit is designed to pay a lump sum in the event of a person suffering a critical illness.
The reality today is that with modern technology individuals are living longer after surviving a serious illness or accident. The costs incurred to adjust your lifestyle could result in dipping into retirement savings and even possibly result in depleting the equity in your home.
Types of expenses resulting from a critical illness are homecare, therapists, and home renovations (if you suffered a stroke or paralysis, wheelchair accessibility may be required). Although no one can be perfectly insured for disability, a blend of critical illness benefits should be acquired where any shortfall exists.
Waiting Period: The waiting period is typically 30 days.
Illnesses Covered by Critical Illness Policies: Heart attack, stroke, coronary artery bypass surgery, lifethreatening cancer, kidney failure, major organ transplant, paralysis, multiple sclerosis, blindness, deafness are typical covered illnesses.
Benefit Periods: Permanent level premium for life and/or 10 year renewable and convertible term to age 75.
Waiver of Premium: If a period of disability continues for more than six consecutive months, the premium for the policy will be waived for the remainder of the disability. Disability is defined as bodily injury or disease which results in:
1. The first two years of the incapacity the individual covered by waiver of premium is prevented from engaging in his or her regular occupation for payment or profit.
2. During the remainder of the incapacity the individual covered by waiver of premium is prevented from engaging in any occupation for which he or she becomes qualified by training, education or experience.
If you are considering purchasing critical illness insurance, contact us today.
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