Let's talk about Critical Illness (CI) Insurance.
Critical illness insurance is a form of insurance protection that provides a tax-free*, lump-sum benefit to you upon diagnosis of a covered condition as defined in your contract. You can use the benefit payment however you choose, without restriction.
Surviving a critical illness comes with consequences, too.
* Under the Income Tax Act (Canada) and at the date of publication, the receipt of Critical Illness Benefits is not currently taxable, we do not guarantee nor is the responsible for the tax treatment applicable to this policy feature. You should consult with your legal or tax advisor for an opinion on this matter to you particular circumstances.
The healthier you are, the more you need CI protection.
You may often feel that you are health and so you don’t need a product like CI. What you may not understand is that the healthier you are, the more likely you are to survive a critical illness. It’s living through the treatment process and surviving the illness that can cause financial hardships for many people.
Some of these financial stresses you may have already considered, like:
But some other expenses may come as an unwelcomed surprise:
Let's talk about what's covered.
Critical Illness Protection can be purchased as a 4-condition or 25-condition policy.
The 4-condition policy offer you a more cost-conscious option while still covering conditions that generate 85%** of claims.
The more comprehensive 25-condition coverage has the added benefit of covering five childhood conditions until the child is 24 years old. Plus, it offers some other benefits, as well.
Please note that a more detailed description and definition of each of these conditions and their associated exclusions, , limitations and survival periods, is set out in the policy contract. Any illness, disorder or surgery not specifically defined in the contract is not covered.
** The 4-condition product includes coverage for cancer, heart attack, stroke and coronary bypass. This figure is based on evidence rates and industry claim statistics.
Critical Illness Covered Conditions.
4-condition coverage
25-condition coverage (also includes 5 childhood conditions)
The following five (5) childhood Critical Illness Covered Conditions are included up to the child's 24th birthday:
*** Loss of independent existence does not apply under the age of 18 for a child coverage at which time it is automatically available.
Let's talk about benefits.
Critical Illness Protection Benefit – Provides a one-time, lump-sum payment if the life insured is diagnosed with one the Critical Illness Covered Conditions and survives the 30-day survival period.
Early Detection Benefit (Available on the 25-condition policy only) – Provides a one-time, lump-sum payment**** per policy if you are diagnosed with one of the Early Detection Covered Conditions and survive the 30-day survival period.
**** The early detection benefit is the lesser of:
a) 15% of the then current critical illness benefit; and
b) $50,000
Return of premium on death benefit – Provides a one-time, lump-sum payment upon the death of the life insured, however, it is not payable if the Critical Illness Benefit has been paid or is payable.
An extra service.
Persons insured under CI policies will have access to covered online general practitioner visits and an expert medical opinion service.
Persons insured under CI policies are able to:
- Receive immediate medical care from a Canadian-licensed doctor online in under five minutes, accessible up to four times per year (per each insured). This free, easy-to-use service is available to the persons insured under CI policies and can be shared with their partner and eligible dependents*****; and
- Connect with specialist providers for expert medical opinions for a specified list of covered conditions.
***** Eligible dependents are anyone for whom the person insured is legally authorized to make healthcare decisions (e.g., a partner, a child under 18, or an elderly dependent). Read Maple’s Privacy Policy for more details. “Partner” means a person with whom the insured is (a) legally married, (b) in a civil union, (c) in common law relationship, (d) live together in a domestic partnership, or in and adult independent relationship and either have lived together for at least one (1) year or are together the parents of a child.
Virtual Healthcare by Maple is a non-contractual benefit and is subject to program availability.
MORATORIUM PERIOD EXCLUSION: 90 DAY EXCLUSION FOR CANCER AND BENIGN BRAIN TUMOR.
The 90-day exclusion period refers to the first ninety (90) days the contract is in force of the first ninety (90) days after reinstatement. If, within this period, you, as the insured person is diagnosed with any cancer or benign brain tumor, or has signs or symptoms that lead to a diagnosis of cancer or benign brain tumor at any time, they will not be eligible to receive the Critical Illness Benefit or Early Detection Benefit for the diagnosis of cancer or benign brain tumor or a covered condition directly resulting from or the treatment from any cancer or benign brain tumor while the policy is in force.
In this exclusion, the term “any cancer” includes all cancers and benign brain tumor, even if they would not have covered under the definitions of cancer for a Critical Illness Covered Condition or an Early Detection Covered Condition.
The information about signs, symptoms, investigations and diagnosis as described above must be provided to us in writing within six (6) months of the date of diagnosis. If the information is not provided during this period, we have the right to deny any claim for a Critical Illness Benefit of an Early Detection Benefit for any cancer or any Critical Illness Covered Condition or Early Detection Covered Condition caused by any cancer, benign brain tumor or its treatment. Please refer to the contract for a more detailed explanation of the moratorium period exclusion.
Let's talk about types of coverage.
| Coverage Type | Term 10 | Term 20 | Term to age 65 |
| Coverage description | Renewable and convertible Term 10 critical illness coverage with premiums that are scheduled to change every 10 years. | Renewable and convertible Term 20 critical illness coverage with premiums that are scheduled to change every 20 years. | Convertible Term to age 65 critical illness coverage with level premiums to age 65. |
| Expiry age | 75 | 75 | 65 |
| Renewability options | Renewable with guaranteed premiums that increase every 10 years. | Renewable with guaranteed premiums that increase every 20 years. | None |
| Coverage option | Available as single life and multiple life plans. | Available as single life and multiple life plans. | Available as single life and multiple plans. |
Let's talk about protecting your coverage.
Have you considered what would happen if you became disabled by a condition other than a Critical Illness Covered Condition and are unable to pay your premiums? A waiver attached to your Critical Illness Protection Policy would allow you to keep your valuable coverage in effect even if you become disabled.
Waiver of Premium – This rider waives the premium if the person insured under this rider is considered totally disabled before the age of 65.
Payor Waiver of Premium ****** – This rider, which is attached to a policy on the life of a child, waives the premium if the person is responsible for paying the premiums dies or is considered totally disabled before the age of 65. Premiums will continue to be waived until the child is age 25.
****** Available on select plans only.
As you have probably concluded there are many variables to consider when deciding which type of insurance is best for you. Contact Jack to help you decide which type of insurance best suits you and your family’s needs.