Chad Larmond | Principal at LRM Insurance

Posted on December 17, 2014 and updated December 17, 2014 in Critical Illness Insurance - What The Experts Own, Life Insurance Canada News 4 min read

Chad Larmond 

PrincipalLRM Insurance

1. What type of Critical Illness insurance do you own?

The type of critical illness insurance that I own is a level premium to age 65. It has a 100% return of premium at age 65 if no claims are made.

2. What factors did you consider when determining the coverage amount?

A good range to consider is one or two years worth of your gross or net income. I purchased my plan early in my career so I secured an amount that I am able to grow into as my income increases. This strategy ensured that I did not have to go through additional medical testing in the future to qualify for more coverage.

3. Do you think people underestimate the importance of critical illness insurance and if so why?

Yes, most people cannot see themselves being diagnosed with cancer or a heart condition so they will tend to avoid the topic. My experience has proven that once someone close to them goes through a diagnosis and survives they are more likely to consider the merits of this product. Some clients will buy Life Insurance because they can see themselves passing away prematurely but won’t buy Critical Illness Insurance because they cannot see themselves becoming sick. Not the proper way to think in my opinion as benefits provided when you are living are the most likely to pay and most important.

4. What are some limitations or exclusions should people watch out for?

Be aware of the exclusions in your contract (like any contract this is the first section you should read). Standard exclusions in a critical illness insurance contract include, self inflicted injuries, injuries occurring while impaired by alcohol or drugs, acts of war, etc. All CI contracts include a 3 month moratorium period whereby no benefits are payable for cancer or benign brain tumour during the first 3 months that your policy in effect. Limitations for cancer also exist and usually pay out only a fraction of the benefit for an early stage diagnosis of skin, breast, and prostate cancer – this category also includes angioplasty.

5. If you had to choose between Critical Illness and Life Insurance which one would you choose and why?

In my opinion, you should own both unless your net worth is extremely high (over $5M). If budget is an issue you should consider purchasing a 10 year term policy that will keep the premiums lower during the initial 10 year period and arguably the most important time for you to have the coverage as your maintain and build your wealth.

Chad Larmond headshot

Chad Larmond, Chad specializes in helping Business Owners and Professionals replace income in the event of injury, sickness & death. Chad is an expert in the areas of Disability Insurance, Critical Illness Insurance, Long Term Care Insurance and Life Insurance. Chad began his insurance career in 2003 with the largest Disability Insurance carrier in North America (UnumProvident). He spent 8 years there specializing in Group and Individual Living Benefits. He worked as a top consultant to help Insurance and Investment Advisors when their clients required Living Benefit Insurance Solutions.

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