The ABCs of Critical Illness Insurance
Patrick Bouchard, Desjardins Group advisor, answers the questions most frequently asked by consumers to better understand critical illness insurance.
1. What is it?
Critical illness insurance pays the insured a tax-free amount of money when a critical illness is diagnosed [Note 1]. Heart disease, cancer and stroke are among the most common.
2. What is it used for?
The amount paid to the insured allows them to dispose of them as they see fit, according to their needs, desires and priorities:
compensate for a loss of income caused by a work stoppage;
adapt the house;
allow a loved one to take unpaid leave;
cover the additional expenses caused by illness and convalescence;
receive treatment that is not available in the country;
pay for drugs not covered by the public plan;
receive home care;
get ahead of your retirement plan ...
3. How does it differ from other types of personal insurance?
Life insurance is paid on the death of the insured to the beneficiaries named in the contract. It allows relatives to pay the final expenses and maintain their standard of living External link to the site. Opens in a new window.
Disability insurance External link to the site. Opens in a new window. is paid to the insured to compensate for a loss of income when he is unable to work as a result of an accident or illness. It allows him to meet his financial obligations and new disability-related expenses.
Insurance in the event of loss of autonomy is paid in the form of a tax-free monthly pension in order to allow the insured to obtain specialized care and services, and to choose a suitable living environment due to a loss. autonomy External link to the site. Opens in a new window.
4. How is the premium calculated?
Several factors influence the critical illness insurance premium amount, including:
Current state of health
Family history
The amount covered
Definition of covered and non-covered risks (e.g. exclusion of an existing illness)
The premium (is it fixed, variable, paid throughout life or over a predetermined period? Is there a repayment option?)
The duration of the contract: is there an age at which the contract ends?
Are there other services included? For example: telephone assistance for psychological support.
It is important to discuss this with your financial security advisor in order to determine your needs.
5. How do I know if I am eligible?
In the majority of cases, you will have to answer a questionnaire related to your state of health and your family history. A nurse's visit may be necessary.
In this case, you will have to answer a more elaborate questionnaire and provide, for example, a blood test.
Once your file has been studied, the company can accept or refuse the request or modify its offer (additional premium, exclusion of an already existing illness, etc.).
To learn more about critical illness insurance, make an appointment with a financial security advisor who will be able to guide you and assess the type of protection that might best meet your needs.
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