What You Need To Know About Critical Illness and Pre-existing Conditions

Important things you need to know about critical illness and pre existing conditions
Important things you need to know about
critical illness and pre-existing conditions

While no wants to get sick and be diagnosed with a critical illness, it is part of life. The truth is that most people will be diagnosed with some form of critical illness or experience the effects of a pre-existing health condition.

Approximately two-thirds of Canadians have life insurance coverage*. However, what most of these people do not realize is that they are not covered for critical illness. Critical illness is a separate type of insurance and it is not a type of a life insurance. Life insurance is one category of coverage and living benefits insurance is a second category of coverage that includes policies for critical illness as well as disability, long-term care, and health insurance. The main difference between a life insurance policy and living benefit insurance policies, including critical illness insurance, is that they pay out while the insured is alive. Life Insurance only pays out when you die.

The State of Critical Illness Insurance in Canada
Critical illness and pre-existing conditions that are caused by disease have more of an impact on people than most think. According to The Cancer Society of Canada, one in three people will develop cancer in their life time and 500 people are diagnosed with cancer each day.

Here are some other staggering statistics about critical illness in Canada.

• 25% of Canadians will have some form of heart disease**

• Alzheimer’s disease is one of the leading causes of death in Canada***

• 50,000 Canadians have a stroke each year****

These statistics about critical illness speak volumes about the risk you are taking if you do not get a form of critical illness insurance to protect your family and yourself if you are diagnosed with one of these medical conditions. The odds are someone in your family will develop a critical illness and you need to have the coverage in place to ensure they get the care they need.

What You Need To Know About Critical Illness and Pre-existing Conditions

Here is what you need to know about critical illness insurance policies:

• Payouts: Critical illness coverage pays out while you are alive after you have been diagnosed with an illness.

• Qualifying for coverage: Critical Illness is more difficult to qualify for than standard life insurance. It is a more specialized form of insurance coverage.

• Cost: On average, the premiums are more expensive when you have a critical illness and pre-existing conditions because this form of insurance.

• Criteria: There will be certain criteria that you will be required to meet in order to qualify for critical illness insurance. There is a tighter criterion on the insured. Many illnesses may exclude eligibility for CI insurance, but not necessarily for a general life insurance policy. Factors and conditions such as obesity, high cholesterol, EKG results, smoking and other personal health factors may impact your ability to qualify for coverage.

• Family medical history: Applicants may be declined, rated or offered coverage with exclusions if members of their immediate family have a medical history of conditions covered by the policy. A family history of certain conditions shows that the insured is more likely to develop those same diseases.

For more details on critical illness insurance and obtaining insurance when you have a pre-existing condition, please contact us at 1-866-899-4849 or visit our critical Illness quote page.

**Source: Heart and Stroke Foundation
***Source: The Canadian Alzheimer Society
****Source: The Heart and Stroke Foundation

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