For many who suffer a serious health condition, there can be more to consider than just your recovery. If your condition stops you from working, you will also need to worry about how you’re going to manage your finances without your main income.

That’s where critical illness coverage can help. It allows you to maintain your lifestyle financially and focus on your recovery. However, before signing up, it’s vital to know what critical insurance covers, its benefits, and also its limitations. Read on as we cover all of that and more.

What Does Critical Illness Insurance Cover?

Critical illness insurance will generally cover a wide range of conditions. They can change slightly from one insurer to another, so it’s always important to check your policy. Here are the most common health issues that fall under this coverage.

Cancer – This is perhaps the biggest reason someone may think about critical illness coverage and is one of the most common claims. Most policies will cover the most life-threatening cancers, but definitions can vary. Make sure you know what types and stages are covered.

Heart Attack – A heart attack is another condition that will be covered by this policy if it affects your ability to get back to work. Coverage usually requires a specified level of severity. Therefore, minor heart attacks may not qualify.

Stroke – Usually, a stroke will only be covered for a payout if it causes you permanent neurological damage. Those who suffer minor strokes or transient ischemic attacks (TIAs) may not meet the criteria.

Major Surgery – Some policies may cover you if you require major surgery, especially if it’s going to have a significant impact on your life. Less invasive procedures won’t be covered.

Nervous System Issues – A chronic illness that affects the nervous system, such as multiple sclerosis, Alzheimer’s or Parkinson’s is often included. There are generally specific criteria around both the severity and permanence of the condition.

Organ Failure/Transplant – If you have organ failure (such as requiring dialysis) or an organ transplant, this is typically covered.

The above is far from a complete list of everything that is covered. The list of conditions is usually extensive, but the above are the main conditions that people worry about. Other health conditions such as major burns, coma, disability, or paralysis are also usually covered.

If you are worried about a specific condition, then some policies are customizable. This means you can choose additional coverage for a specific illness. This can be especially good for those who may be concerned about a genetic condition.

Exclusions and Limitations

As important as knowing what is covered, is knowing what isn’t. Let’s take a look at the most common exclusions.

Pre-Existing Conditions – If you already have a pre-existing condition, it will be excluded from the policy. This may also include health conditions you’ve previously suffered with, such as a heart attack.

Non-Severe Conditions – As we mentioned above, mild forms of an illness may not be covered unless (or until) it becomes worse.

Self-Inflicted Injuries – Injuries from either self-harm or reckless behavior may be excluded.

Benefits of Critical Illness Insurance

The obvious benefit of critical illness insurance is the financial support it gives you at a challenging time. This payment may be important to pay off bills and maintain your living expenses, but it can also be used in various other ways.

Medical Expenses—Canadian healthcare will cover many of your medical costs. However, you may have additional expenses, such as private treatments and medications.

Debt Repayment – The lump sum can be used to pay off a wide range of debts. This may include loans and credit cards, but also your mortgage to help alleviate any financial burden.

Home Modifications – Some illnesses may require home modifications. Examples include installing wheelchair ramps or handles in the bathroom.

Care Costs – The cost of caregivers or care facilities can be hugely expensive. Your insurance can help to cover these costs.

Choosing the Right Policy

Selecting the right policy involves considering several factors. The first consideration is obvious, as the coverage needs to meet your needs. Even if it seems obvious, double-check that the policy covers the conditions you are most concerned about.

Other factors such as the policy terms need to be checked. For example, each policy will have a waiting period before the coverage begins. You’ll also want to check the payout amount and ensure it will cover everything you need it to.

And, of course, your premium costs are going to play a huge role in your decision. Many factors can affect this with the biggest one being age. It’s important to shop around or use a broker to find the right policy for you instead of sticking with the first one.

Related Article: https://www.marathoninsurance.ca/blog/tips-for-choosing-the-right-insurance-broker-near-me/

Final Thoughts

Critical illness cover can give you a vital safety net. You’ll get a lump sum if you have one of the covered conditions, and this can help with a wide range of expenses. However, it’s important to know what it covers, along with any exclusions.

If you have any doubts, it’s important to carefully check your policy or seek guidance. An insurance broker will help to find the best policy for you and answer any questions you have. If you’re interested in critical illness cover, contact Marathon Insurance today and we’ll be happy to help.