Being able to keep up with your financial responsibilities will not be easy if something happened to you that prevented you from working. Disability insurance can help replace your income should you become severely ill, while critical illness insurance can provide lump-sum payments to help cover medical costs. With these policies in place, you can ensure that you don’t suffer financial hardship in addition to life challenges in the event of a health crisis.
Essentially, critical illness insurance and disability insurance are the same in that they both provide coverage in the event of a policyholder suffering a serious illness that prevents them working. However, the method in which they are paid out differs because disability insurance is paid on a monthly basis and critical illness insurance is paid as a lump sum.
That is difficult to say as the policy limit will depend on a number of factors, such as the job, salary and period of insurance. Contact us to get a free, no-obligation quote and we will advise you of the limit that will most suit you.
No. Under Canadian regulations, the sums received from critical illness and disability insurance policies are not taxable.
The policies provide coverage for serious illnesses that prevent the policyholder from working; these include, but are not limited to: cancer, heart attack, stroke, brain tumor, kidney failure and dementia.
Generally, no. Some insurance companies may consider you for other types of insurance coverage, but will not provide critical illness or disability if you have a pre-existing condition.