FI Financial

Group of Companies

Critical Illness Coverage

 

 

To learn more please watch this short video.

 

More and more Canadians are surviving medical conditions that were once fatal. Income Replacement insurance will replace lost income; however, additional funding to help the insured put finances into order, to support the cost of converting a vehicle or home, or to cover medical expenses must be drawn from another source. Critical Illness Insurance pays a lump sum upon diagnosis and survival of a covered critical illness. Benefits are payable when the insured has survived for 30 days after diagnosis, unless otherwise stated in the contract.

In general terms, the diseases and conditions covered are:   

  • Alzheimer's disease
  • aorta surgery
  • Blindness 
  • cancer 
  • coma
  • coronary artery bypass
  • deafness
  • heart attack
  • kidney failure
  • loss of speech
  • major bums
  • major organ transplant
  • Multiple Sclerosis
  • paralysis
  • Parkinson's disease
  • stroke
  • valve replacement 

Complete definitions of these conditions appear in the policy contract.

Charges for Critical Illness Benefits

Once a critical illness benefit is paid, the critical illness benefit terminates and charges for critical illness insurance will no longer be withdrawn from the accumulation fund. There is no waiver for critical illness charges in the event of disability or the diagnosis of a critical illness. However, the Deposit Completion Rider can be used to provide monthly premium deposits for life and critical illness charges should the insured become disabled.

Exclusions 

The benefit will exclude any critical illness that results directly or indirectly from any:

  • intentionally self-inflicted injury 
  • use of any illegal drugs or substances, or misuse of alcohol, or misuse of medication obtained with or without a prescription
  • operation of a motorized vehicle while legally impaired; or 0 participation in a criminal act or attempt to commit a criminal offense. 

Coverage Details

Critical illness coverage can be purchased for an individual between the ages of 20 and 65. Critical illness coverage is available to age 75 or for lifetime. Charges will vary depending on the coverage period selected. The minimum amount of critical illness insurance that can be part of a Security Fund is $50,000. The maximum amount of critical illness insurance is $ 1,000,000 if the coverage is required for personal reasons and $2,000,000 for coverage required for business reasons. There are two rate structures available for critical illness coverage:

  • Term 10 available for coverage to age 75 only (issued from ages 20-60 only) 
  • Level for Life - available for lifetime coverage only. 

The Term 10 structure may be renewed to age 75 and converted to Level for Life before the insured reaches age 65. 

Smoker/Non-Smoker Classification 

The cost of insurance rates are significantly lower for insured individuals who are classified as non-smokers. Non-smoker rates are now available for individuals who occasionally smoke a pipe or cigar. Non-smoker rates also apply to users of snuff and chewing tobacco. The rates for regular cigar smokers will be based on nonsmoker rates, but subject to an additional cigar rating. Smoker rates will apply to individuals who have used cigarettes, cigarillos, marijuana or nicotine products or substitutes within 12 months prior to the issue of a policy. Smoker rates will also apply to regular pipe smokers. 

If the insured is classified as a smoker or a non-smoker with a cigar rating when the policy is issued, and the policy has no other rating for a smoking related impairment, the classification can be changed to that of a non-smoker within three years after issue by providing a satisfactory non-smoking declaration and urine sample. After three years, a change in smoking classification will require full medical underwriting. 

Joint Critical Illness Coverage 

For joint-last-to-die policies, Security Fund, critical illness protection may be designed to include two lives, each of which can be individually insured for a critical illness benefit. 

Insurability Checklist

Critical illness coverage is not generally available for individuals who have suffered from or been diagnosed with any of the listed conditions or illnesses. Prior to applying for critical illness insurance, the potential insured should be prescreened using the Insurability Checklist for Critical Illness.

To view a comparison of all Canadian Insurers offering Critical Illness
click here to download in adobe acrobat (pdf) format (57kb)

 

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Last modified: May 06, 2015