What is Critical Illness Insurance?

Overview

“You need insurance, not only because you’re going to die,
but because you’re going to live.”
-Dr. Marius Barnard (1983)
RSA Creator of Critical Illness insurance

Critical Illness Insurance provides a large infusion of capital when the insured needs it most; to cover treatment and recuperation costs, replace lost income, and preserve wealth and assets created over the years.
In most cases, 30 days after being diagnosed as having suffered ANY ONE of the illnesses or conditions covered by the policy, a LUMP SUM BENEFIT is paid TAX-FREE.
The lump sum benefit can be used entirely as the policy owner chooses.
Claims are not subject to interpretation and ongoing qualifications; instead, benefits are promptly paid when the clearly defined conditions are met.

History of Critical Illness Insurance

Dr. Marius Barnard, a South African heart surgeon, found Life & Disability Insurance were totally inadequate when victims suffered a critical illness.

He noted all his patients were very happy to have survived a critical illness whereas before advances in medical science they would have died. Without exception, all experienced financial hardship as a result of their illness.

Over time it occurred to Dr. Barnard that the solution to this vexing problem was an insurance policy that provided a large infusion of capital after individuals suffered a critical illness.

Dr. Barnard approached Crusader Life Insurance Company in South Africa with his concept and from that initiative, in 1983, Critical Illness Insurance was born. It was initially given the terrifying name ‘Dread Disease Cover.’

The policy quickly spread to Australia and other Pacific Rim countries. Thereafter to Europe.

Efforts to introduce Critical Illness Insurance in Canada began in 1988 and failed largely because it hadn’t been designed to meet Canadian needs. In late 1994 Critical Illness Insurance was successfully launched, at last designed to meet Canadian needs.

Why was it created?

Dr. Barnard recognized that Disability Insurance was primarily designed to handle gradual debilitating long term illness, not critical illness which usually strikes suddenly.
Advances in Medical Science, pharmacological research and technological breakthroughs are prolonging life, but not the quality of life.
Lifestyle changes and workplace stress have contributed to an ever increasing number of critical illnesses.
Most critical illness victims survive the initial event and eventually make a full recovery.
Critical illness Insurance can help guarantee the quality of life.

Why does it matter?

For Businesses

Social awareness campaigns from respective illness foundations are drawing attention to CII
85% of Canadians know someone who has had a heart attack, stroke or cancer diagnosis
CII very often pays when traditional disability insurance wont
CII is easy to implement into traditional benefit planning.
The chances of encountering a critical illness vs disability or death during the working years are significant.

For Individuals/Employees

Each medical breakthrough enables more people to survive critical illnesses but live disabled.
Increased workplace stress and lifestyle changes have created new health problems and increased the incidence of critical illnesses.
The removal of financial worries, including costly additional medical treatments, allows one to fully concentrate on a speedy and full recovery.

Features & Strengths

There are a number of strengths that define critical illness insurance as a highly desirable benefit. Here are a few that stand out amongst the top products available to consumers.

Overview

Critical Illness Insurance provides a large infusion of capital when the insured needs it most; to cover treatment and recuperation costs, replace lost income, and preserve wealth and assets created over the years.

In most cases, 30 days after being diagnosed as having suffered ANY ONE of the illnesses or conditions covered by the policy, a LUMP SUM BENEFIT is paid TAX-FREE.

The lump sum benefit can be used entirely as the policy owner chooses.

Claims are not subject to interpretation and ongoing qualifications; instead, benefits are promptly paid when the clearly defined conditions are met.

History of Critical Illness Insurance

Why was it created?

Dr. Barnard recognized that Disability Insurance was primarily designed to handle gradual debilitating long term illness, not critical illness which usually strikes suddenly.

Advances in Medical Science, pharmacological research and technological breakthroughs are prolonging life, but not the quality of life.

Lifestyle changes and workplace stress have contributed to an ever increasing number of critical illnesses.

Most critical illness victims survive the initial event and eventually make a full recovery.

Critical illness Insurance can help guarantee the quality of life.

Why does it matter?

For Businesses

Social awareness campaigns from respective illness foundations are drawing attention to CII

85% of Canadians know someone who has had a heart attack, stroke or cancer diagnosis

CII very often pays when traditional disability insurance wont

CII is easy to implement into traditional benefit planning.

The chances of encountering a critical illness vs disability or death during the working years are significant.

For Individuals/Employees

Each medical breakthrough enables more people to survive critical illnesses but live disabled.

Increased workplace stress and lifestyle changes have created new health problems and increased the incidence of critical illnesses.

The removal of financial worries, including costly additional medical treatments, allows one to fully concentrate on a speedy and full recovery.

Features & Strengths

Liquidity - Pays a lump sum benefit

Benefit Paid - Tax-Free

Hassle Free - Single payment

No Fine Print - Clearly defined definitions

Simple Claims Process - Definitive, not subjective

Benefit Paid Based On - Initial diagnosis of specific event

Elimination Period - Benefits are usually paid after 30 days

Proof Required - Medical records, reports, test results