Life Insurance in Canada and the Terminal Illness Benefit

Posted on February 6, 2010 and updated November 10, 2010 in Critical Illness, Insurance Types, Life Insurance Canada News, Term Insurance 2 min read
Doctors demand action
What’s the difference?
Critical Illness and
Terminal Illness Benefit.

Many life insurance companies in Canada offer a terminal illness benefit as a built-in feature in their life insurance policies. It’s important that terminal illness coverage not be confused with Critical Illness coverage.

A Terminal illness feature means that the insurance company will generally allow the insured to access up to 50% of the face amount when the insured is diagnosed with less than one year to live.

The terminal illness benefit will be deducted from any future death benefit payout’s, and is often subject to interest. Critical Illness coverage is different from terminal illness coverage, since Critical Illness is designed to help the insured with ongoing costs related to battling a critical illness.

For more details, on terminal illness coverage please contact us at 1-866-899-4849, or visit our online Critical Illness Quote Page