A critical Illness such as a heart attack or cancer could lead to financial ruin. Catastrophic or critical illness insurance provides a tax free lump sum payment upon diagnosis of a critical illness.
Critical Illness Insurance (CI) was pioneered by Dr. Marius Barnard in South Africa who recognized the need for a “living” benefit which could be paid tax-free to assist in patient recovery or alternative treatment of a critical illness. Dr. Barnard wrote:
When his patient’s “didn’t lose their life, they lost their life savings” after surviving once fatal illnesses such as cancer, stoke, or heart disease. He states, “You need insurance not because you are going to die, but because you are going to live. [Today, individuals] have a greater chance of living long enough to become seriously ill.”
Dr. Marius Barnard, May 1997
While disability insurance protects an individual’s lifestyle, CI protection addresses the immediate expenses associated with surviving the diagnosis of a catastrophic illness. The tax-free benefit paid after surviving a 30 day waiting period after diagnosis can be used however the claimant pleases:
- Private Medical Treatment / Second Opinions / Diagnostics / Surgery
Vancouver
Timely Medical – North Vancouver
False Creek Health Care – Vancouver
Top US Hospitals
Mayo Clinic – Rochester, MN
The Johns Hopkins Hospital – Baltimore, Maryland
- Lifestyle Changes – Wheel chairs, vehicle and home conversion or simply;
- R & R – A Vacation
There are two main types of CI policies – Basic and Comprehensive