Hatch Muir Financial Group - Critical Illness Insurance

People buy Critical Insurance to replace income that has stopped as a result of a Critical Illness, and to pay for new expenses that may be incurred as a result of the illness. Critical Illness Insurance is relatively new in Canada. It was invented and first introduced in 1983 in South Africa by Dr. Marius Barnard as a top-up benefit to medical expense policies, and has only recently been available in Canada. Dr. Barnard recognized that many people were recovering from surgeries, that in earlier years would not have been conducted. (His brother Dr. Christian Barnard was a pioneer in heart transplant surgery). The additional life expectancy came with a cost, however, as frequently the patient could not continue to work, and had seriously depleted any savings they may have had to find medical and recovery expenses.

Critical Illness is unlike Disability Insurance, in the following areas:

Critical Illness Insurance provides a one-time, lump sum, tax-free cash payment, if you suffer a Critical Illness, and survive for 30 days.
- critital illness
Disability Insurance pays a portion of your monthly income, until the insurance company decides that you have recovered. Your doctor, rather than the insurance company, decides whether you have suffered a Critical Illness.

The amount you pay to buy Critical Illness Insurance is called the premium. This amount will vary depending upon:

The amount of coverage you buy
The extent of coverage.
- Some companies offer coverage for more types of critical illness than others do
Your age, gender, physical condition and whether or not you smoke

The lump sums available range from $50,000 to $1,500,000
The duration of coverage:
- 10 year, Age 65, Age 75, or Life

Critical illness Insurance proceeds are paid directly to you, on a lump sum, tax-free basis, and can be used for any purpose. Commonly used to pay for:

Debts, loans & mortgages	Alternative medicine	Leaves of absence
Childcare	Early retirement	Nursing care
Home adaptation	Occupational change	Job retraining

Critical Illness Insurance Policies cover some or all of the following conditions, depending upon the insurance company selected:

Severe burns	Coma	Major organ transplants
Alzheimer's	paralysis	Occupational HIV infections
Motor Neuron Disease	Benign brain tumor	Aortic surgery
Heart valve replacement	Loss of independence	Heart attack
Stroke	Coronary artery bypass surgery	loss of speech
loss of limbs	Deafness	Kidney failure
Parkinson disease	Multiple Sclerosis	Blindness
Life threatening Cancer

It is expected that 80% of Canadian claims will be for Cancer, Heart Attack or Stroke. Key issues to consider when buying Critical Illness Insurance:

Awareness of Canadian statistics regarding critical illness experience
Extent of coverage varies by company
Definitions and Interpretations of critical illness

The purchase of Critical Illness Insurance is complex, and is relatively new in Canada. Hatch & Muir are Chartered Life Underwriters and Certified Financial Planners. We can provide you with advice and help you choose the right Critical Illness insurance contract.