Why is Critical Illness Insurance Important?

Life can be unpredictable, and when it comes to your health, it’s essential to be prepared. That’s where critical illness insurance comes in—a safety net designed to provide financial support if you’re diagnosed with a serious illness covered by your policy. Think of it as a backup plan that steps in when life throws you a curveball. Common conditions covered include cancer, heart attacks, strokes, and multiple sclerosis. The idea is simple: if the unexpected happens, you receive a lump-sum payment to help with medical bills, recovery costs, or even everyday expenses while you focus on getting better.

Top 3 Reasons to get Critical Illness Insurance:

Financial Security:

Medical treatments and recovery can be expensive. Critical illness insurance provides a tax-free lump sum to help cover these costs, whether it’s for your medical bills, rehabilitation, or just keeping up with household expenses while you’re on the mend.

Income Protection:

If you need time off work to recover, this insurance can help replace your lost income, ensuring that your financial stability—and that of your family—remains intact during a challenging time.

Peace of Mind:

There’s a lot to worry about when you’re dealing with a serious illness, but having financial support in place can ease some of that burden, letting you focus on what’s most important—your recovery.

When Should You Consider Critical Illness Coverage?

The best time to think about critical illness insurance is when you start earning an income and taking on financial responsibilities. But it’s particularly important to consider if:

• You have dependents who rely on your income.
• You have significant debts, like a mortgage.
• You want to safeguard your financial future in case of a health crisis.

Advantages of Getting Coverage Early:

As with most things in your pursuit of financial wellness, starting early is a game changer! Here’s why taking out a critical illness insurance policy as soon as you can is worth it:

• Lower premiums: The younger and healthier you are, the less you’ll pay.
• Protection for now and later: You’re covered for conditions that might arise both now and in the future.
• Better odds: Many serious illnesses occur later in life, often after age 65, so getting covered early means you’re protected as you age.

What Are Your Critical Illness Insurance Options?

Critical illness insurance isn’t one-size-fits-all. You can choose from various options, including the duration of coverage (e.g., Term 25, Term 75, Term 100) and the number of conditions covered (anywhere from four to over 25). Many policies are also convertible, renewable, and come with optional riders to tailor the coverage to your needs. And the good news is, you can find providers offering this coverage all across Canada.

Group Benefits:

If you have group coverage through your employer, it’s worth noting that it might not be enough. Group benefits often provide limited coverage, which may leave gaps in your financial protection.

This is why many people opt for additional private critical illness insurance to ensure they’re fully covered.

No Group Coverage?

If your employer doesn’t offer critical illness insurance, securing private coverage becomes even more crucial. Protecting yourself and your loved ones with the right policy ensures you’re not left vulnerable in the face of a serious illness.

The Cost of Private Critical Illness Coverage

The cost of your critical illness insurance policy is influenced by a variety of factors, such as the number of illnesses included in your coverage, the duration of the policy, and any additional features or riders you choose to add. These variables mean that rates can differ significantly from one person to another, making it crucial to get a personalized quote that accurately reflects your specific situation and needs.

For instance, if you’re a healthy, non-smoking 30-year-old male, you might be looking at a monthly premium ranging between $76 and $107 for $150,000 in coverage until age 75. However, these figures can change based on your health status, the extent of your coverage, and other personal circumstances.

Get Personalized Guidance for the Best Choice

At Wealthstack, we get that your financial journey is as unique as you are. That’s why sitting down with a Wealthstack Expert to figure out the right amount of coverage isn’t just a good idea—it’s essential. We’re here to help you craft a financial plan that goes beyond just insurance policies, one that’s not only comprehensive but also tailored to your life’s needs and goals. Our focus is on making sure you and your loved ones are protected and prepared, no matter what twists and turns the future may bring. Chat to us today!