Critical illness insurance or critical illness cover is an insurance product, where the insurer is contracted to typically make a lump sum cash payment if the policyholder is diagnosed with one of the critical illnesses listed in the insurance policy.
The policy may also be structured to pay out regular income and the payout may also be on the policyholder undergoing a surgical procedure, for example, having a heart bypass operation.
The policy may require the policyholder to survive a minimum number of days (the survival period) from when the illness was first diagnosed. The survival period used varies from company to company, however, 28 days and 30 days are the most common survival periods used.
The contract terms contain specific rules that define when a diagnosis of a critical illness is considered valid. It may state that the diagnosis need be made by a physician who specializes in that illness or condition, or it may name specific tests, e.g. EKG changes of a myocardial infarction, that confirm the diagnosis.
There are alternative forms of critical illness insurance to the lump sum cash payment model. These critical illness insurance policies directly pay health providers for the treatment costs of critical and life-threatening illnesses covered by the policyholder’s insurance policy, including the fee of specialists and procedures at a select group of high-ranking hospitals up to a certain amount per episode of treatment as set out in the policy.
Examples of other conditions that might be covered include:
- Alzheimer's disease
- Blindness
- Deafness
- Kidney failure
- A major organ transplant
- Multiple Sclerosis
- HIV/AIDS contracted by blood transfusion or during an operation
- Parkinson's disease
- Paralysis of limb
- Terminal illness
GET iT® Insurance has a network of qualified, trusted and experienced licensed insurance agents, brokers and brokerages across Canada. Let us connect you with an insurance professional in your area to get an insurance quote or estimate that meets your individual needs. Our network of insurance agents, brokers & brokerages provide term life insurance, permanent life insurance, critical illness insurance, disability insurance, mortgage insurance, and insurance solutions for people that have no medical insurance.
