Critical Illness:

News from 2013

What Is Critical Illness Insurance?

"People don't need insurance because they are going to die… They need it because they are going to live." – Dr. Marius Barnard Dr. Christiaan Barnard performed the world’s first adult heart transplant in South Africa in 1967. His lesser-known brother, Dr. Marius Barnard, also a heart surgeon, developed critical illness insurance. He developed this insurance because he saw the need to help people who were suffering financially because of hardship from illness. ...
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Life Insurance with a Critical Illness Advance Payment

Many life insurance companies have life insurance policies available with the critical illness rider, which is crucial given that nearly half of all Canadians will be diagnosed with cancer and 1.6 million Canadians will suffer a heart attack or stroke. However, the only real cost advantage to the insured with a combo plan is they're saving on the policy fee. The life insurance and critical illness insurance or both underwritten separately, but dealt with simultaneously, at the time of ...
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Key Man Life Insurance

A Key Man or Key Person life insurance policy is a life insurance policy placed on the life of a key employee. A key man / key person policy is necessary when a employee is crucial to the business and when replacing that person would be costly and time consuming. A key person life / key man policy allows the business the funds necessary to cushion against such a loss. How much should the key man / key person be insured for is a function of their potential loss should he / she die. As ...
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Is Critical Illness Return of Premium a Good Deal?

The total amount of critical illness premiums sold in Canada in 2012 was$623.7 million, and more and more have optional return-of-premium riders. Return-of-premium riders pay back the insured's premium cost if he or she does not make a critical illness claim within a prescribed length of time. To that end, return-of-premium can be when the policy term expires without use, like at the end of 75 years on a Term 75, or at different intervals, such as 10 years or 20 years. ...
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Would You Sell Your Life Insurance Policy to a Third Party?

Daniel Kahan is strongly in favour of viatical settlements. Selling your life insurance benefit for cash upfront to a third party is illegal in most provinces in Canada — except Quebec, Saskatchewan, Nova Scotia, and New Brunswick. But proponents like Daniel Kahan say that viatical settlements can be a viable income alternative to those who currently need long-term care or are now suffering from a critical illness and wouldn't qualify for traditional long-term care or critical illness ...
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Critical Illness Premiums on the Rise

Critical Illness insurance rates have increased significantly in recent months. Many carriers have raised the rates up to 30 per cent. Most of the increase has been in the permanent critical illness market, and this is being fuelled by historically low interest rates. Current interest rates are at 1 per cent, according to Trader Economics, which reports, "Historically, from 1990 until 2013, Canada's Interest Rate averaged 6% reaching an all time high of 16%," so this is a huge drop. ...
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Making a Critical Illness Insurance Claim

Canadians are much more likely to develop a critical illness by age 65 than they are to die, but what do you need to do to claim on your critical illness policy? The first step in collecting on a Critical Illness insurance policy is to contact your insurance advisor or your insurance company directly to let them you would like to file a Critical Illness claim. Depending on the provisions of your policy, the company will let you know how long you must wait in order to collect your ...
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Desjardins Increases Universal Life, Term 100 and Critical Illness Insurance Rates

As of March 14, Desjardins Insurancehas announced a premium increase to their permanent life insurance and critical illness products. For permanent insurance products, the average increase will be between 2 and 7 per cent on the following brands: MaxLife (T100) Guaranteed Whole Life and Life 20 Foundation (T100) Precision and Precision 20 The level cost for Flex 1 and Flex 1 paid-up at age 85 or in 20 years will also increase. However, the good news is that so will the cash ...
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Sean Long: “Critical Illness Insurance Is Expensive, But It Works”

The only thing that has truly changed in the critical illness market over the years is price. So says Sean Long, an insurance consultant from Calgary, Alberta, who believes the cost has been affected in a very specific way. "The cost has not been affected by claims. What the cost has been affected by is a return on capital and a return on investments," he says, and brokers are to blame. "Agents are doing a better and better job of showing the product off, but what they're not doing is ...
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Sirius Benefit Plans: Critical Illness

Sirius Benefit Plans has unveiled the details of their critical illness plan. The plan covers 31 illnesses, including Alzheimer's Disease, stroke, muscular dystrophy, paralysis, loss of speech, occupational HIV, and others. The plan also comes with a number of additional benefits, including the following: Cancer recurrence benefit Complementary benefit, which gives you 10 per cent of the principle sum for coronary angioplasty, Ductal Carcinoma in Situ of the Breast, Stage A ...
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