Critical Illness Insurance Toronto

Posted on December 02, 2011 by Admin
Critical Illness Insurance Toronto

Critical Illness Insurance Toronto

Whilst people instantly consider level term life insurance coverage when they have a mortgage and/or young children, a far smaller percentage will take out a combined life and critical illness insurance policy. Whilst it is more expensive than standard life coverage, a life-threatening illness means that it will no longer be possible to work. When this is the case, it can be extremely difficult to continue to meet any financial obligations.

Why is a Life and Critical Illness Insurance Policy Necessary?

Research by Bupa (a leading provider of health insurance coverage) showed that a 35-year old male was five times more likely to make a claim under a critical illness policy than level term life insurance. This means that it is essential for those with a young family, unpaid debts and/or a mortgage. A sudden loss of income can be financially catastrophic, particularly if that person is the sole bread winner.

The Cost of Critical Illness Policies

It doesn't take a professional actuary to determine that the likelihood of developing a life-threatening health problem increases with each passing year. Although a combined life and critical illness insurance policy is always more expensive, it is cheaper to take out coverage when younger. It is generally cheaper to take out coverage for women than it is for men, although this will be affected by the individual's choice of lifestyle. Those who drink heavily or smoke will need to pay a higher premium.

Be Honest About Pre-existing Medical Conditions

Although premiums won't be reduced, it is essential that the insured is completely honest when answering questions about previous health problems and their choice of lifestyle. Whilst admitting to being a smoker will increase monthly premiums, failing to do so will invalidate the policy. The insurer is able to perform a series of checks to ascertain the validity of the data they have been provided. Any pre-existing medical conditions will be specifically excluded from the coverage.