Why is Critical Illness Insurance Worth It?
There are many different insurance types out there and it can be hard to know which ones are right for you. Due to this, you may be asking: why is critical illness insurance worth it? Thankfully we’re here to answer exactly that.
Critical illness insurance is a great option for providing financial security. Not only can serious illnesses affect your health, but their financial impact can also be severe. Here we’ll look at why critical illness insurance is important, and whether or not it’s right for you.
What is Critical Illness Insurance?
Let’s first take a look at exactly what critical illness insurance is. This type of policy gives you a lump sum payment if you’ve been diagnosed with a serious covered illness. This usually covers a wide range of conditions such as cancer, heart attack, stroke, and more.
There are no conditions on the payout, and it can be used for anything you may need. Whether for medical bills, income replacement, clearing debt, or anything else, this flexibility can be invaluable. This can help soften the financial blow of a life-altering diagnosis.
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The Financial Realities of Critical Illness in Canada
It’s easy to think that you don’t need critical illness insurance because of provincial healthcare plans. While they can provide basic coverage, there are other reasons why this type of coverage can be invaluable.
Loss of Income – There is a chance you can get employee or government support if you have to stop working for extended periods, but this support rarely covers your full income. The lump sum can be used to cover the shortfall and is even more important for those who are self-employed.
Treatment and Recovery Costs – While some treatments will be covered, others won’t be fully funded. You may also wish to opt for private healthcare or something like therapy to aid in your recovery. The money can be used for extra health costs.
Everyday Expenses – Bills don’t stop during your recovery, and the immediate impact of a critical illness may mean you have fallen behind with payments. The lump sum can be used to keep up or even get ahead with your expenses.
Key Reasons Why Critical Illness Insurance is Worth It
Let’s take a close look at the key reasons why critical illness insurance is worth it.
Covers Gaps in Traditional Health Insurance
As we’ve mentioned, there could well be gaps in traditional health insurance that you’ll want to be covered by a lump sum payment. Critical illnesses often demand additional levels of support such as specialized therapies, rehabilitation services, and even travel expenses.
Simply put, critical illness insurance allows you to have the resources to pursue any treatment you think will help. Without this financial blanket, you risk not having the support you need or not being able to recover as quickly.
Financial Relief
After a critical illness, you may not be able to work for years, or it’s possible you may never be able to work again at all. There is also the sad possibility you will eventually die from the condition you’ve been diagnosed with. There is a good chance you’ll have a full or partial loss of income.
Critical illness can set you up for an easier financial future. For example, some use it to pay off a mortgage due to the financial security that it can give. You also may want to look to the future in other ways, such as putting money into a trust for your children’s education. This financial cushion allows you to focus on recovery and stops you rushing back to work.
Life Changes
Due to the critical illness, you may need to make life choices and changes that you may otherwise been unable to afford. For example, if you have a stroke then you may need to hire in-home care or other types of assistance.
Other life changes may include modifications to your home, moving to a more accessible property, or an increase in travel for care purposes. The lump sum allows you to make the changes you need to make your life more comfortable.
Support for Family and Dependents
A critical illness will always affect more than just the patient, as it will have a big impact on the family too. For example, a partner may need to take time off work to provide additional support or extra childcare arrangements may be needed.
The financial support from critical illness insurance can mean other family members aren’t left struggling. Knowing there’s a safety net there allows the family to focus on what matters most while still being able to maintain your financial lifestyle.
Protects Savings and Retirement Funds
It’s always a good idea to save for retirement or have savings tucked away for the likes of vacations or children’s education. However, a critical illness can quickly drain away these savings and eat away at your future financial security.
Instead of your hard-earned savings being dwindled down to nothing, critical illness insurance gives you an alternative resource to deal with the financial burden. It means you can get the care you need without sacrificing your long-term goals.
Final Thoughts
As you can see, when it comes to the question of why is critical illness insurance worth it, there are a lot of reasons. It can give you that valuable safety net you need for you and your family if you’re diagnosed with a life-changing condition.
While critical illness insurance is worth it for many people, it’s important to get a policy which fits in with your circumstance. Call Ron Johnston Insurance today and we’ll be happy to assess your needs and find the right critical illness insurance for you and your family.