People view life insurance as leaving money for their loved ones when they die. The industry has expanded and so has the products that they offer to include Living Benefit Insurance. These types of products allow you to have access to funds while you are alive.

According to a Canadian Cancer Society article dated 8 May 2012 – lung, prostate, breast and colorectal cancer are the four most common cancer types (excluding non-melanoma skin cancer) accounting for over 50% of all new cancer cases in Canada.

• Lung cancer accounts for 29% of all cancer deaths each year
• Breast cancer accounts for 28% of new cancer cases in women
• Prostate cancer accounts for 27% of new cancer cases in men

Critical Illness (CI) Insurance is a living benefit. It was created to relieve emotional and financial difficulty when faced with a critical illness. What will happen if you are diagnosed with a critical illness such as cancer? Can you take time off work? Will someone be available to help care for you? Who do you want to take care of you?

Benefit

In order to receive the benefit the insured must survive for more than 30 days after diagnosis of one of the illnesses covered in the contract. The benefit is paid tax free and may be used as the insured wishes. Premiums can be returned between ages 60 to 75, if the benefit option of Return of Premium is requested at application, if you do not make a claim.

Policy Structure

Critical Illness can be purchased either for a term or as permanent insurance. If term is selected there is an option to convert to permanent insurance.

CI polices may vary in conditions covered. The basic policy will cover the four dreaded conditions – cancer, heart attack, stroke and coronary bypass surgery. The comprehensive package depending on the insurer may include the following:

• Alzheimer Disease
• Benign brain tumor
• Blindness
• Coma
• Coronary Artery Disease Surgery
• Deafness
• Loss of limbs
• Loss of speech
• Multiple sclerosis
• Occupational HIV infection
• Paralysis
• Parkinson’s disease
• Renal (kidney) failure
• Severe burns
• Vital organ transplant.

I am encouraging everyone reading this article to consider purchasing this product as I think it is better to be prepared if diagnosed. Recently a client who purchased this product approximately 10 years ago was diagnosed with Prostate Cancer he submitted his claim, and received a cheque. He was able to recover without the added stress of worrying about his financial health. Remember this payment is received TAX FREE.