Permanent Critical Illness Insurance Rates are on the Rise

Critical Illness insurance coverage pays out a lump sum if the insured is diagnosed with a critical illness, and Canada remains one of the few countries in the world to offer critical illness permanent plans with guaranteed rates.

The number of critical illnesses covered can range from three to 25. However, permanent critical illness policies have been heavily affected by historically low long-term interest rates. As a result, many insurers have removed these products from their lineup or have significantly increased their premiums for these products.

Industrial Alliance raised prices on its permanent critical illness products on July 3rd, 2012. The rates rose by 2% for smokers and 7% for non-smokers, which allows the product to remain competitive within the industry. —Insurance and Investment Journal, August 2012

Desjardins Insurance also increased its critical illness rates in July 2012, and more companies are likely to follow this trend. The increase in critical illness rates came after an similarly calculated increase in permanent life insurance rates by virtually every insurance company in Canada.

In addition to lower interest rates, critical illness suppliers have a smaller timeframe during which to analyze claims data. At the same time, critical illness products have only been sold in Canada for a little over two decades, yet sales have really only picked up in the last five to ten years.

For more details on Critical Illness insurance in Canada, please contact us at 1-866-899-4849 or visit our Critical Illness Quotes Page.

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