Critical illness insurance / Disability insurance / What should I know?
In the same way as planning insurance such as health, life, liability, legal, etc., it is appropriate to consider the issue beforehand in order to ensure and have complete financial health protection.
Our blog aims to enlighten you, and above all, to get you to ask yourself the right questions when the time comes to sign. We warmly thank Mrs. Marie-Pier Després, president of Després Services-Conseils Inc. for her contribution to our blog regarding questions on insurance.
What is critical illness insurance?
Critical illness insurance is complementary to health insurance and disability insurance.
It offers personal protection which guarantees compensation when a person suffers from one or more diagnosed serious illnesses.
Called “ complementary ” because most health insurance policies do not offer this type of protection.
More precisely, this type of serious illness insurance contract:
- Compensation, in an amount predetermined in the insurance contract, according to the exact definition mentioned in the contract, which must not be part of the exclusions.
- Determines which serious illnesses are recognized within the meaning of the insurance policy.
It is then important to know this list of serious illnesses covered since it can vary from one contract to another , so that a contract does not immediately recognize all serious illnesses, not to mention that it does not define in the same way serious illnesses.
Examples of serious illnesses covered: Cerebrovascular accidents (CVA); heart attack ; cancers which represent a danger of death; severe burns; blindness; Alzheimer's disease ; Parkinson disease ; Multiple sclerosis, etc.
Després Services-Conseils Inc
Examples of common exclusions: cancers that occur within 90 days of the policy effective date; carcinoma in situ, which includes many cervical cancers; prostate cancer stage T1A or T1B; skin cancer in the absence of metastases, diseases that result directly or indirectly from alcohol or drug abuse are also generally excluded.
Després Services-Conseils Inc
Knowing that one in 8 women will have breast cancer, and there is just as much cancer in men, it is therefore important to validate, before signing a contract, because you could be very disappointed with the amount you will receive, if you receive one of course.
What is disability insurance?
Disability insurance offers monthly benefits in the event of a prolonged absence from work due to injury or illness, which benefits will not exceed the income of the insured person (depending on the coverage, can vary between 60 to 70% of income), for a period of time. fixed period, starting at a predetermined time in the contract.
It is important to know the definition of disability in the contract, the waiting period, the duration of benefits, etc.
How to use the services if necessary.
These two types are complementary, but distinctive even if these insurances have similarities.
Critical illness insurance offers a single lump sum payment if the insured person suffers from one or more serious illnesses and the type of contract does not prevent this person from continuing to work. She offers an amount due to unusual expenses.
Disability insurance offers compensation for loss of income in the event of inability to work following an injury or illness (depending on the coverage, after 30 days or more depending on the period selected when applying). subscription). It offers the opportunity to maintain a standard of living until the insured person returns to work. It offers benefits to cover usual personal expenses.
Another distinction... certain functional devices for a person's recovery, as well as travel expenses, are not covered by disability insurance, but rather by critical illness insurance.
It then becomes important to examine all the types of insurance contracts offered if a person wants complete and additional financial protection.
The benefits then help absorb costs that are usually covered by the insured person's income, such as bills, mortgage or rent, groceries, etc.
Conclusion
Critical illness insurance and disability insurance provide additional coverage when unforeseeable moments arise in the life of the insured person.
Nowadays, it is known that the healthcare costs incurred can sometimes be astronomical, or even create stress for an entrepreneur. These services then allow you to focus on healing rather than financial impacts.
If you have any questions about this blog, you can contact your bank or insurance company.