AUG 2021
Protection from a major health event and a little forced savings for your healthy future self. One of the unique features in the Canadian living benefit insurance market is the ability to receive all your premiums back if you don’t claim on the contract.
What is Critical Illness Insurance
Critical illness can give you a tax-free payment if you’re diagnosed with a serious condition. Your contract will define which conditions you’re covered for, but some examples include cancer,heart attack or stroke.
Benefits
With this product, you get a cheque from the insurance company for every premium dollar you paid over the life of the contract. There is no other insurance product that allows you to receive all your premiums back if you don’t use it.
Example
| Major Illness Cover Benefits | Female age 40 |
|---|---|
| Coverage to age 75 | $100,000 |
| Annual Premium | $1700/year |
| Total premium returned @age 75 | $59,500 |
In the example, during the 35 years of coverage, you are entitled to $100,000 if you survive a major illness such as Cancer, Heart Attack, or Stroke. There are many more covered conditions, however, these three are the most common that people will claim. Imagine you received a tax-free cheque today for almost $60,000. Now imagine your retired self receiving this cheque to supplement your retirement income.