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What is Super Visa Insurance for visitors to Canada?

Posted on January 18, 2024June 11, 2024 by canadianlic

What are the details needed?

This means grandma and grandpa can stay for thanksgiving and Christmas. An added benefit is, you won’t have to worry about short visa renewal deadlines. For further details about Super Visa Insurance, contact. Canadian LIC.
Before you apply for Super Visa Insurance on your parents behalf (yes, you can do that), you will have to submit some details about your parents or grandparents. Have a look at the list below, so you can gather all the information before you sit for filling up the form.

The purpose of the visit to Canada of your parents/ grandparents
If they have medical insurance from a Canadian company and with a coverage of $100,000 for at least a year
Status of their home country; if it’s socio-economically stable
You parent’s or grandparent’s relationship with their home country; whether they are not trying to seek permanent resident ship in Canada.
If they are admissible in Canada
Passing certificate for the immigration medical test.

You also need to submit some details

Alongside submitting details of your parents or grandparents, you will also need to submit the following to complete the whole documentation process. Have a look at the list below:

Proof of Canadian citizenship
Proof of employment in Canada with joining date
Proof of a stable income with bank statements, tax statements and pay stubs. This is done to ensure that you can support your family members financially when they come.
Proof of medical insurance

You will also have to draft a formal invitation letter and then submit all the details with that letter for processing. Once everything is completed, your parents or grandparents will have to visit the Canadian embassy on a given date for the final formalities.

Get The Best Insurance Quote From Canadian L.I.C

Call 1 844-542-4678 to speak to our advisors.

Why is it necessary to get medical insurance from a Canadian agency?

Well, it’s simple; it’s because most Canadian insurance companies have a direct billing connection with most of the hospitals in the country. If your dear ones are insured with a Canadian agency, medical processing fee won’t take that much time at all. Also, if they are insured by an agency from another country, the claim could be repudiated. You buy the insurance for only one year and you have to renew it every year. Apply today and spend some much-needed quality time with your family members. Contact Canadian LIC for further details or schedule an appointment.

The above information is only meant to be informative. It comes from Canadian LIC’s own opinions, which can change at any time. This material is not meant to be financial or legal advice, and it should not be interpreted as such. If someone decides to act on the information on this page, Canadian LIC is not responsible for what happens. Every attempt is made to provide accurate and up-to-date information on Canadian LIC. Some of the terms, conditions, limitations, exclusions, termination, and other parts of the policies mentioned above may not be included, which may be important to the policy choice. For full details, please refer to the actual policy documents. If there is any disagreement, the language in the actual policy documents will be used. All rights reserved.

Please let us know if there is anything that should be updated, removed, or corrected from this article. Send an email to [email protected] or [email protected]

How To Pick The Right Insurance Broker?

Posted on January 18, 2024June 11, 2024 by canadianlic

Getting insurance on your own can be very risky and challenging compared to buying a car or a home. There are so many things to consider, and that’s why you should consider hiring a professional insurance broker. They can help you choose the right policy and coverage for that policy. However, the question here would be, how can you choose the best insurance broker in Canada? Several factors play a crucial role in choosing an insurance broker, and we will discuss them, so you can have a better idea of Why you should Choose an Insurance Broker to Purchase an Insurance Plan. If you are looking for the best insurance broker in Toronto, you can contact Canadian LIC and get in touch with our team. We will be glad to help you out with all your insurance needs.

Learn more on – Why you should Choose an Insurance Broker to Purchase an Insurance Plan

Who is an Insurance Broker?

A professional insurance broker helps you purchase a policy that meets your insurance needs. They take a practical step-by-step approach starting with

You should also know that insurance brokers can help in customizing the policy contract for you as well. If you want to add a clause or change the terms and conditions of the agreement, your insurance broker ensures that the changes are mentioned in the paperwork. If you have any queries, you can get in touch with Canadian LIC in Toronto today, and we will be happy to resolve all of them.

What does an Insurance Broker do?

An insurance broker possesses all the knowledge of the different types of insurance available in the market and provides the best advice on what might be the best insurance option for you as per your lifestyle, health, age, and available assets. Another amazing thing is that these insurance brokers will act as agents doing your paperwork and handling claims that arise.

Why Should You Use An Insurance Broker To Purchase An Insurance Plan?
Why Should You Use An Insurance Broker To Purchase An Insurance Plan?
Why Should You Use An Insurance Broker To Purchase An Insurance Plan?
Why Should You Use An Insurance Broker To Purchase An Insurance Plan?

Can we trust an Insurance Broker?

Insurance brokers usually get commissions from the insurance companies for the many types of insurance they sell if they are able to sell it successfully. These insurance agents work with a number of insurance providers, so there are very few chances of them having a monetary bias for any one particular product. Hence they are unbiased and impartial parties and provide you with a policy that would be in your budget as per your requirements from so many different insurance companies in their knowledge.

Do Insurance Brokers Understand the Products They Sell?

You will definitely be able to make a much better decision if you buy insurance through an insurance broker rather than directly from any insurance company. An insurance broker’s job is to have all the best knowledge about the best insurances available in the market from the best insurance companies and hence will advise you for one which is perfect for your budget. These insurance brokers in Canada are very well aware of the application requirements, coverage terms, and pricing.

Whatever insurance you are looking for, be it critical illness insurance, disability insurance, life insurance, etc., you can easily buy through an insurance broker in Ontario after comparing them with each other. Mostly all the insurance brokers cover all types of insurance, but you might find a few who specialize in specific ones. So if you want an expert opinion on a particular insurance, you can go to these types of insurance brokers in Canada.

The Benefits of Working with an Insurance Broker in Toronto

Alongside helping you choose the ideal insurance policy for you and your family, working with expert insurance brokers has its advantages. Here’s how you will benefit from hiring an insurance broker in Toronto before choosing a policy:

Experienced and best insurance brokers in Canada always keep themselves up to date with the latest trends in the insurance market; they can help you choose the ideal insurance plan based on your needs and industry standards.
Your insurance broker in Toronto will be connected with many companies, and that gives them access to several insurance products. Once they know all your needs, they can compare multiple plans and policies and present the ones suited to your requirements and within your budget.
Once you have selected a policy, they can help negotiate premiums and see that you get an affordable monthly rate for the plan you choose.
If you are not sure which insurance policy is ideal for you, an insurance broker can share their unbiased advice so you can make an informed decision.
They can also help in settling claims. Once you have submitted your claim, your insurance broker will follow up to ensure the claim is processed correctly.
An insurance broker can help you settle legal disputes with the insurance company as well.

Get The Best Insurance Quote From Canadian L.I.C

Call 1 844-542-4678 to speak to our advisors.

Some Tips On Choosing The Right Insurance Broker

Although there is no established formula for finding the right broker for your insurance needs, what you should look for is someone who has a minimum set of attributes to shift through several policies and identify the right option for you. Here are some tips that can help you hire an insurance broker:

Visit their website and have a look at their customer reviews. This will give you a better insight into how they have worked with their previous customers.
Check if the insurance broker works with several companies; if they do, that would mean that they are well-established in the industry.
You can ask them for proof of their experience, as all registered insurance brokers must possess a minimum set of qualifications.
Ask for a consultation, and during the first meeting, you can resolve all the queries you may have.
Also, when you are searching for an insurance broker, you should pay close attention to their availability, as well as how long they take to return phone calls or respond to emails. Choose an insurance broker who is always prompt with their replies.

Process of Application

During the Application process, certain documents will be needed from you, such as:

There are certain insurance policies that might even require you to go for a Health Exam before the issue of the policy, but it has become really rare now.

Whatever situations you might be facing for the type of insurance you are dealing with, you will have complete guidance and support from the insurance broker in Toronto you are working with. A few things to consider before making your decision to buy your policy are as follows:

If in case you have missed anything or want to add to your plan, your broker should be able to do that for you effortlessly. Once you have made up your mind, the insurance broker will complete the application process and will proceed with the payment process for you. If you are required to make a claim, the broker might also support you after the coverage gets life.

To learn more about the application process, you can read – Getting an Insurance Policy.

What is the cost of buying Insurance from the Best Insurance Broker in Canada?

An insurance broker is paid by insurance companies and not by clients. They cannot charge a fee; if they do, then it might be a scam.

You only have to pay the fee for the insurance policy you buy but not any fee to the broker. The prices of different insurance policies vary to a great extent as per their type and coverage.

In fact, if you buy insurance from an insurance broker in Canada, it might be cheaper than buying directly from the insurance company. This happens because the insurance broker provides you with various discounts and also negotiates the price of the plan. You can even take the benefits of rebates by bundling different policies together.

Thus to put it in simple terms, you might experience a vast difference in the cost of insurance when you buy it through a broker but not in any case, you will have to pay fees to the broker. You will only have to pay the price of the insurance policy you are buying after you have made the decision to buy it.

Get The Best Insurance Quote From Canadian L.I.C

Call 1 844-542-4678 to speak to our advisors.

Other Insurance Buying Options

You can even buy your insurance directly through the insurance company or work with an agent if you are not interested in buying through a broker. But if you do so, then you will lose the biggest benefit of comparing different insurances available in the market. If you decide to work with an agent, it is best advised to do your proper research so that you are able to grab the best deal for your plan.

Final Thoughts

Hiring an insurance broker can be difficult, but if you choose our team at Canadian LIC in Toronto, you will be hiring a team of professionals who can help you get a tailored insurance policy at affordable premium rates. Please schedule a consultation today; we look forward to meeting you. We are based in Toronto.

Please let us know if there is anything that should be updated, removed, or corrected from this article. Send an email to [email protected] or [email protected]

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Posted on January 12, 2024June 11, 2024 by canadianlic

Insurance Companies

Common questions

Learn more on – Why you should Choose an Insurance Broker to Purchase an Insurance Plan

Who is an Insurance Broker?

A professional insurance broker helps you purchase a policy that meets your insurance needs. They take a practical step-by-step approach starting with

What does an Insurance Broker do?

Why Should You Use An Insurance Broker To Purchase An Insurance Plan?
Why Should You Use An Insurance Broker To Purchase An Insurance Plan?
Why Should You Use An Insurance Broker To Purchase An Insurance Plan?
Why Should You Use An Insurance Broker To Purchase An Insurance Plan?

Can we trust an Insurance Broker?

Do Insurance Brokers Understand the Products They Sell?

The Benefits of Working with an Insurance Broker in Toronto

Experienced and best insurance brokers in Canada always keep themselves up to date with the latest trends in the insurance market; they can help you choose the ideal insurance plan based on your needs and industry standards.
Your insurance broker in Toronto will be connected with many companies, and that gives them access to several insurance products. Once they know all your needs, they can compare multiple plans and policies and present the ones suited to your requirements and within your budget.
Once you have selected a policy, they can help negotiate premiums and see that you get an affordable monthly rate for the plan you choose.
If you are not sure which insurance policy is ideal for you, an insurance broker can share their unbiased advice so you can make an informed decision.
They can also help in settling claims. Once you have submitted your claim, your insurance broker will follow up to ensure the claim is processed correctly.
An insurance broker can help you settle legal disputes with the insurance company as well.

Get The Best Insurance Quote From Canadian L.I.C

Call 1 844-542-4678 to speak to our advisors.

Some Tips On Choosing The Right Insurance Broker

Visit their website and have a look at their customer reviews. This will give you a better insight into how they have worked with their previous customers.
Check if the insurance broker works with several companies; if they do, that would mean that they are well-established in the industry.
You can ask them for proof of their experience, as all registered insurance brokers must possess a minimum set of qualifications.
Ask for a consultation, and during the first meeting, you can resolve all the queries you may have.
Also, when you are searching for an insurance broker, you should pay close attention to their availability, as well as how long they take to return phone calls or respond to emails. Choose an insurance broker who is always prompt with their replies.

Process of Application

During the Application process, certain documents will be needed from you, such as:

There are certain insurance policies that might even require you to go for a Health Exam before the issue of the policy, but it has become really rare now.

To learn more about the application process, you can read – Getting an Insurance Policy.

What is the cost of buying Insurance from the Best Insurance Broker in Canada?

An insurance broker is paid by insurance companies and not by clients. They cannot charge a fee; if they do, then it might be a scam.

You only have to pay the fee for the insurance policy you buy but not any fee to the broker. The prices of different insurance policies vary to a great extent as per their type and coverage.

Get The Best Insurance Quote From Canadian L.I.C

Call 1 844-542-4678 to speak to our advisors.

Other Insurance Buying Options

Final Thoughts

Please let us know if there is anything that should be updated, removed, or corrected from this article. Send an email to [email protected] or [email protected]

What is the Difference between Life Insurance and Critical Illness Insurance?

Posted on October 20, 2023June 11, 2024 by canadianlic

Critical Illness Insurance is a vital component of financial planning in Canada, providing individuals and families with crucial protection against the financial hardships that often accompany a serious illness diagnosis. This insurance product offers financial security by providing a lump-sum payout upon the diagnosis of a covered critical illness or medical condition. In Canada, where access to healthcare is mainly universal, Critical Illness Insurance fills the gap by addressing the financial aspects of dealing with a severe health crisis.

Key Features of Critical Illness Insurance in Canada

Financial Protection: A critical illness diagnosis can lead to substantial medical bills, loss of income, and additional expenses, such as home modifications or caregiving costs. Critical Illness Insurance helps policyholders and their families maintain financial stability during these challenging times.
Range of Covered Illnesses: Canadian Critical Illness Insurance policies typically cover a defined list of critical illnesses, which may include cancer, heart attack, stroke, organ transplant, and others. The specific conditions covered can vary among insurance providers, so it’s essential to review policy details carefully.
Lump-Sum Payout: The policyholder receives a tax-free lump-sum payment upon diagnosis of a covered condition. This payout can be used at their discretion, whether for medical treatments, debt repayment, daily living expenses, or other needs arising from the illness.
Survivability: Unlike life insurance, where the payout is made to beneficiaries upon the policyholder’s death, Critical Illness Insurance provides financial support while the policyholder is alive and coping with the illness. Even if the policyholder survives the illness, they receive the benefit.
Policy Terms: Critical Illness Insurance policies in Canada can vary in terms of coverage duration. Some policies may be term-based, while others may be part of permanent life insurance policies. Policyholders should choose a term that aligns with their needs and financial goals.
Pre-Existing Conditions: When applying for Critical Illness Insurance, applicants are typically required to disclose their medical history. Some policies may exclude pre-existing conditions from coverage, while others may offer coverage with certain conditions or at higher premiums.
Tax Benefits: Critical Illness Insurance payouts are generally tax-free in Canada, offering policyholders further financial relief during a health crisis.
Riders and Customization: Some insurance providers offer riders that can be added to critical illness policies for additional coverage or benefits. This allows individuals to tailor their policies to meet their unique needs.
Consultation and Advice: Given the complexity of insurance policies and the importance of making informed decisions, consulting with a licensed insurance advisor in Canada is advisable. One of the best financial advisors, like Canadian LIC, can help individuals assess their specific needs, compare policies, and select the most suitable coverage.

Hence, Critical Illness Insurance plays a vital role in the financial well-being of Canadians facing severe health challenges. It offers peace of mind by providing financial support precisely when it’s needed most, allowing policyholders and their families to focus on recovery rather than worrying about the associated financial burdens. As with any insurance product, it’s crucial to carefully read and understand policy terms and consult with professionals to make informed decisions about Critical Illness Insurance in Canada. Consult Canadian LIC to get the best solutions as per your situation.

Difference between Life Insurance and Critical Illness Insurance

Life insurance and Critical Illness Insurance are two distinct types of insurance products available in Canada, each serving a different purpose. The table given below highlights the key differences between Critical Illness Insurance and life insurance in Canada, including their purposes, triggering events, use of funds, premiums, taxation, and other important aspects.

Aspect	Critical Illness Insurance	Life Insurance
Purpose	Provides a lump-sum payout upon the diagnosis of a covered critical illness or medical condition, providing financial support during recovery.	Provides a payout to beneficiaries upon the policyholder’s death, offering financial protection to loved ones.
Triggering Event	Payout triggered by the diagnosis of a covered critical illness during the policy term.	Payout is triggered by the policyholder’s death, as long as the policy is in force and premiums are up to date.
Use of Funds	The lump-sum payout can be used at the policyholder’s discretion, whether for medical expenses, debt repayment, or daily living expenses during illness.	Beneficiaries use the payout to cover immediate expenses, debts, and ongoing living expenses after the policyholder’s death.
Duration	Policies can be term-based or shorter-term, aligning with potential high-risk years for critical illnesses.	Term-based or permanent policies can last a lifetime, providing long-term protection.
Premiums	Premiums are generally higher due to the lower probability of a critical illness diagnosis during the policy term.	Premiums are typically lower because the likelihood of a death benefit payout is higher.
Beneficiaries	The policyholder receives the payout upon the diagnosis of a critical illness.	Beneficiaries receive the payout upon the policyholder’s death.
Customization	Riders can be added to enhance coverage, such as disability riders or return of premium riders.	Riders and endorsements are available to customize coverage, such as adding critical illness or accidental death riders.
Taxation	Payouts are typically tax-free, providing financial relief during a critical illness.	Payouts are generally tax-free for beneficiaries in Canada.
Pre-Existing Conditions	Coverage for pre-existing conditions varies by policy and insurer. Some may be excluded from coverage.	Policies may be issued without regard to pre-existing conditions, but coverage and premiums can be affected.
Waiting Period	Most policies have no waiting period, and coverage becomes effective immediately upon approval.	Coverage typically begins immediately upon policy approval or at the start of the chosen term.
Additional Benefits	May offer additional benefits, such as rehabilitation benefits or coverage for specific conditions unique to the policy.	May include riders for additional coverage, such as accidental death and dismemberment or living benefits.
Survival of Policyholder	Provides financial support to the policyholder while alive and dealing with a critical illness diagnosis.	Provides financial protection to beneficiaries after the policyholder’s death.
Common Covered Events	Covered conditions may include cancer, heart attack, stroke, organ transplant, and others.	Typically covers a broad range of causes of death, including illness, accidents, and natural causes.

Purpose:

Life Insurance: Life insurance provides a financial payout to your beneficiaries (usually family members or loved ones) in the event of your death. It is designed to offer financial support to your loved ones when you pass away, helping them cover expenses such as funeral costs, mortgage payments, debts, and ongoing living expenses.
Critical Illness Insurance: Critical Illness Insurance provides a lump-sum payment to you (the policyholder) if you are diagnosed with a covered critical illness or medical condition, such as cancer, heart attack, stroke, or other specified illnesses. The purpose is to help you cover medical expenses, treatment costs, and any additional expenses that may arise due to your illness, such as modifications to your home or loss of income during recovery.

Triggering Events:

Life Insurance: The payout is triggered upon the policyholder’s death, as long as the policy is in force and the premiums are up to date. There is no payout if the policyholder is alive when the policy expires.
Critical Illness Insurance: The payout is triggered upon the diagnosis of a covered critical illness or condition while the policy is in force. The policyholder receives the lump sum even if they survive the illness and continue to live.

Use of Funds:

Life Insurance: The funds from a life insurance payout are typically used by the beneficiaries to cover immediate expenses, settle debts, and maintain their financial stability after the policyholder’s death.
Critical Illness Insurance: The funds from Critical Illness Insurance can be used at the discretion of the policyholder, whether it’s for medical treatments, ongoing care, paying off debts, making lifestyle adjustments, or covering any other expenses related to the critical illness.

Duration:

Life Insurance: Life insurance policies are usually purchased for a specific term (term life insurance) or for the policyholder’s lifetime (permanent life insurance), depending on the type of policy chosen.
Critical Illness Insurance: Critical Illness Insurance policies can also be purchased for a specific term, but they are commonly shorter-term policies. They are designed to provide protection during the critical years when you may be at a higher risk of developing a serious illness.

Premiums:

Life Insurance:Premiums for life insurance are generally lower than those for Critical Illness Insurance because the likelihood of a payout is higher in the case of life insurance (eventually, everyone passes away).
Critical Illness Insurance: Premiums for Critical Illness Insurance are typically higher due to the lower probability of a critical illness diagnosis during the policy term.

It’s important to carefully assess your financial needs and priorities when deciding which insurance product to purchase. Some individuals may choose to have both life insurance and Critical Illness Insurance to provide comprehensive protection for themselves and their loved ones in Canada. Consulting with a qualified insurance advisor like Canadian LIC can help you determine the most suitable coverage for your specific circumstances.

Read More – Critical Illness Insurance here

What does Critical Illness Insurance cover in Canada?

Critical Illness Insurance in Canada typically covers a specific list of critical illnesses and medical conditions. The exact coverage can vary depending on the insurance provider and policy, so it’s essential to review the policy terms and definitions carefully. However, common critical illnesses and conditions covered by Critical Illness Insurance in Canada often include:

Cancer: Critical Illness Insurance commonly covers various types of cancer, including breast cancer, lung cancer, prostate cancer, and others. Coverage may extend to different stages of cancer, from early diagnosis to advanced stages.
Heart Attack: This coverage usually includes a heart attack resulting from a blockage of blood flow to the heart muscle. The severity of the heart attack may affect the payout amount.
Stroke: Critical Illness Insurance typically covers both ischemic and hemorrhagic strokes, which result in a loss of blood flow to the brain or bleeding within the brain.
Coronary Artery Bypass Surgery: Coverage often extends to the need for coronary artery bypass grafting, a surgical procedure to improve blood flow to the heart.
Kidney Failure: Critical illness policies usually cover end-stage renal failure, which requires regular dialysis or kidney transplants.
Major Organ Transplant: This includes coverage for the transplantation of major organs such as the heart, lungs, liver, or pancreas.
Multiple Sclerosis: Some policies cover the diagnosis of multiple sclerosis, a chronic neurological condition affecting the central nervous system.
Paralysis: Depending on the policy, paralysis resulting from a covered accident or illness, such as a severe spinal cord injury, may be included.
Coma: Some policies cover a coma resulting from a covered illness or accident, with specific criteria defining the duration and severity of the coma.
Blindness: Coverage for irreversible and total loss of vision is often included.
Deafness: This coverage typically applies to total and irreversible hearing loss.
Loss of Limbs: Coverage for the loss of limbs or their use due to an accident or illness may be part of the policy.
Aortic Surgery: Certain critical illness policies cover the need for surgery on the aorta, the body’s largest artery.
Benign Brain Tumor: Some policies provide coverage for the diagnosis and surgical removal of benign brain tumours.
Parkinson’s Disease: Coverage may include the diagnosis of Parkinson’s disease, a degenerative nervous system disorder.

It’s important to note that the specific illnesses and conditions covered can vary among insurance providers and policy options. Additionally, policies may have varying definitions and criteria for determining the severity of a covered condition, which can affect the payout amount.

Before purchasing Critical Illness Insurance in Canada, individuals should carefully read and understand their policy’s terms and definitions. Contact Canadian LIC- a licensed insurance advisor can ensure that you select a policy that aligns with your specific health needs and financial goals.

What does Critical Illness Insurance not cover in Canada?

Critical Illness Insurance policies in Canada typically come with specific exclusions and limitations as well. These exclusions can vary depending on the insurance provider and the specific policy you choose. While the exact exclusions may differ, there are some common elements and types of situations that Critical Illness Insurance typically does not cover:

Non-Covered Illnesses: Critical Illness Insurance policies only cover specific illnesses and medical conditions as outlined in the policy. Any illness or condition not listed in the policy is not covered.
Pre-Existing Conditions: Many policies exclude pre-existing conditions. If you have a medical condition that you were diagnosed with before purchasing the policy, that condition may not be covered. However, some policies may offer coverage for pre-existing conditions after a waiting period.
Self-Inflicted Injuries: Injuries or illnesses resulting from intentional self-harm or suicide attempts are typically excluded from coverage.
Non-Diagnosed Conditions: To receive a payout, a qualified medical professional must officially diagnose the critical illness according to the policy’s criteria. Symptoms alone are not sufficient for a claim.
Misrepresentation or Concealment: If you provide false information or fail to disclose important medical information during the application process, the insurer may deny your claim.
Use of Alcohol or Drugs: If a critical illness results from drug or alcohol abuse, it may not be covered. Additionally, any illness or injury that develops as a result of engaging in risky activities while under the influence of alcohol or drugs may be excluded.
War and Terrorism: Injuries or illnesses caused by acts of war or terrorism are generally not covered by Critical Illness Insurance.
Participation in Illegal Activities: If you are engaged in illegal activities when a critical illness occurs, it may lead to a claim denial.
Non-Adherence to Medical Advice: If you do not follow prescribed medical treatments and advice related to your illness, the insurer may deny your claim.
Waiting Periods: Some policies have waiting periods before coverage becomes effective. During this period, which is typically 90 days from the policy’s start date, no claims can be made.
Exclusions for Specific Treatments: Certain treatments or procedures may be excluded. For example, experimental treatments or those not approved by Health Canada may not be covered.
Age Restrictions: Some policies have age restrictions, meaning that coverage may not be available to individuals above a certain age.
Exclusions for Certain Stages of Illness: Depending on the policy, coverage for some illnesses may be limited to specific stages or degrees of severity. For example, not all stages of cancer may be covered.

Understanding the exclusions and limitations is essential to avoid surprises when making a claim. If you have questions or need clarification about the coverage provided, consider consulting with Canadian LIC, who can help you choose a policy that suits your specific needs and circumstances.

Get The Best Insurance Quote From Canadian L.I.C

Call 1 844-542-4678 to speak to our advisors.

Faq's

What is life insurance, and how does it work in Canada?

Life insurance is a financial product that provides a payout to your beneficiaries when you pass away. In Canada, when you purchase a life insurance policy, you pay regular premiums, and in return, your chosen beneficiaries receive a lump-sum payment (the death benefit) upon your death.

How does Critical Illness Insurance differ from life insurance in Canada?

Critical Illness Insurance in Canada provides a lump-sum payout to you (the policyholder) if you are diagnosed with a specified critical illness during the policy term. This differs from life insurance, which pays out to your beneficiaries upon death.

What are the common critical illnesses covered by Critical Illness Insurance in Canada?

Common critical illnesses covered by Critical Illness Insurance in Canada may include cancer, heart attack, stroke, organ transplant, and other specific medical conditions. The list of covered illnesses can vary among insurance providers, so reviewing the policy details is essential.

Can I have both life insurance and Critical Illness Insurance in Canada?

Yes, many individuals choose to have both life insurance and Critical Illness Insurance to provide comprehensive protection. Life insurance helps your loved ones financially after your death, while Critical Illness Insurance provides support if you are diagnosed with a critical illness and survive.

How do premiums for life insurance and Critical Illness Insurance differ in Canada?

Premiums for life insurance are generally lower than those for Critical Illness Insurance in Canada because the likelihood of a payout is higher for life insurance (everyone eventually passes away). Critical Illness Insurance premiums are typically higher due to the lower probability of a critical illness diagnosis during the policy term.

Can I add critical illness coverage as a rider to my life insurance policy in Canada?

Some insurance providers in Canada offer critical illness riders that can be added to a life insurance policy for an additional cost. This allows you to have both types of coverage under one policy, simplifying your insurance needs.

How can I determine the right amount of coverage for life insurance and Critical Illness Insurance in Canada?

The appropriate coverage amount depends on your individual circumstances, including your financial responsibilities, goals, and budget. It’s advisable to consult with Canadian LIC, an expert insurance advisor, as they can help you assess your needs and recommend suitable coverage amounts.

Are the payouts from life insurance and Critical Illness Insurance taxable in Canada?

In most cases, life insurance payouts are not taxable in Canada. However, the tax treatment of Critical Illness Insurance payouts can vary depending on several factors, including how the policy is structured. It’s advisable to consult with a tax professional to understand the tax implications fully.

Can I purchase life insurance or Critical Illness Insurance in Canada if I have pre-existing health conditions?

It is possible to obtain life insurance or Critical Illness Insurance in Canada if you have pre-existing health conditions, but the availability and terms of coverage may vary among insurance providers. It’s essential to disclose all relevant information when applying for insurance, and some policies may come with higher premiums or exclusions related to pre-existing conditions.

How do I choose the right insurance provider and policy for my needs in Canada?

To choose the right insurance provider and policy in Canada, consider working with Canadian LIC, a licensed insurance advisor who can help you assess your needs, compare options, and find a policy that aligns with your financial goals and circumstances.

Always make sure to read and understand the policy terms, conditions, and exclusions before purchasing any insurance product in Canada.

Please let us know if there is anything that should be updated, removed, or corrected from this article. Send an email to [email protected] or [email protected]

All About The Critical Illness Insurance Policy & The Benefits of Critical Illness Insurance

Posted on October 19, 2023June 11, 2024 by canadianlic

A form of financial protection called critical illness insurance was created to shield Canadians from the heavy financial constraints that can result from being diagnosed with a life-threatening illness. The aim, operation, typical coverage, and advantages offered to policyholders of critical illness insurance in Canada will all be covered in detail here.

About Critical Illness Insurance

When a covered critical illness is diagnosed, a particular kind of insurance coverage called Critical Illness Insurance pays the policyholder a lump sum. This payment is made tax-free and is available for use at the policyholder’s choice, providing financial flexibility during a trying period. With a focus on providing financial support when a major sickness is detected, Critical Illness Insurance differs from standard health insurance, which covers medical costs.

Read More – Critical Illness Insurance here

How Does Critical Illness Insurance Work in Canada?

Critical Illness Insurance works on a very simple premise:

Purchase a Policy: Individuals in Canada can purchase a Critical Illness Insurance policy from an insurance provider. The policyholder pays regular premiums, typically monthly or annually, to maintain coverage.
Diagnosis of a Covered Illness: If the policyholder is diagnosed with a critical illness covered by the policy, they become eligible to make a claim.
Claim Submission: The policyholder or their designated beneficiary submits a claim to the insurance provider. This claim includes medical documentation confirming the diagnosis of the covered critical illness.
Claim Evaluation: The insurance provider reviews the claim to ensure it meets the policy’s criteria for the specific critical illness. If the claim is approved, a lump-sum payment is made to the policyholder.
Lump-Sum Payout: Upon approval, the policyholder receives a tax-free lump-sum payment. This payment can be used for any purpose, such as covering medical expenses, paying off debts, maintaining their standard of living, or pursuing alternative treatments.

Is it worth buying critical illness insurance in Canada?

The decision to purchase Critical Illness Insurance in Canada, as in any other country, is a highly individual one and depends on your specific circumstances, needs, and priorities. It’s not a one-size-fits-all solution, and what may be a valuable investment for one person may not be the same for another. Here are some factors to consider when determining if Critical Illness Insurance is worth buying in Canada:

Current Financial Situation: Evaluate your current financial situation, including savings, investments, and other insurance coverage. Suppose you have substantial financial resources that can comfortably cover medical expenses and maintain your lifestyle in the event of a critical illness. In that case, you may have less need for Critical Illness Insurance. However, if a significant financial burden arises from such an illness, insurance can provide valuable protection.
Health and Family History: Consider your personal health history and your family’s medical history. If you have a family history of specific critical illnesses or if you have lifestyle factors that put you at higher risk (e.g., smoking, sedentary lifestyle), having Critical Illness Insurance may be more important to you.
Existing Insurance Coverage: Review your existing insurance coverage, including health insurance and disability insurance. While these policies provide certain protections, they may not cover all the financial challenges associated with a critical illness, such as non-medical expenses or experimental treatments. Critical Illness Insurance can complement these policies by providing additional coverage.
Debt and Financial Obligations: Consider your financial commitments, such as mortgage payments, student loans, or other debts. Critical Illness Insurance can ensure that these financial obligations are met if you become critically ill and are unable to work. It can provide peace of mind knowing that your debts won’t become a burden to you or your family during recovery.
Risk Tolerance: Assess your risk tolerance and willingness to take on financial risk. Some individuals prefer to have a financial safety net in place, even if it means paying insurance premiums. The knowledge that they have protection in case of a critical illness outweighs the cost of the premiums.
Affordability: Determine if the premiums for Critical Illness Insurance fit within your budget. It’s essential to strike a balance between coverage and affordability. Work with an insurance advisor to find a policy that aligns with your financial situation.
Family and Dependents: If you have dependents or a family that relies on your income, Critical Illness Insurance can provide significant benefits. It ensures that your family’s financial needs are met and that they can maintain their standard of living during your recovery.
Personal Peace of Mind: Beyond the financial considerations, think about your peace of mind. Some people value knowing that they have financial protection in place for unforeseen circumstances. This emotional security can be an essential aspect of Critical Illness Insurance. In conclusion, Critical Illness Insurance in Canada can be a valuable investment for individuals who want to protect their financial well-being in the event of a severe medical condition.

Does my health insurance cover critical illnesses?

In Canada, the healthcare system provides universal access to medically necessary hospital and physician services through provincial and territorial health insurance plans. This coverage ensures that Canadians have access to essential medical services without direct out-of-pocket payments at the point of care.

However, it’s important to note that while Canada’s public healthcare system covers a wide range of medical services, including hospital stays and physician visits, it does not provide comprehensive coverage for all aspects of healthcare. In particular, the public healthcare system does not cover certain expenses related to critical illnesses, such as:

Prescription Drugs: While some provinces have programs that provide drug coverage for specific populations (e.g., seniors and low-income individuals), prescription drug coverage is not universally comprehensive. Many prescription medications used in the treatment of critical illnesses may not be fully covered.
Medical Equipment and Supplies: Specialized medical equipment and supplies, such as mobility aids or devices required during recovery, may not be covered by the public healthcare system.
Home Care Services: In some cases, individuals recovering from a critical illness may require home care services, which may not be fully covered or may have limitations under the public system.
Travel Expenses: If you need to travel for specialized medical treatments or consultations not available locally, the public healthcare system does not typically cover travel expenses.
Non-Medical Expenses: Critical illnesses can result in non-medical expenses, such as modifications to your home to accommodate your condition, child care, and other related costs. These expenses are generally not covered.
Lost Income: If you are unable to work due to a critical illness, the public healthcare system does not provide income replacement. This can result in a significant financial burden, especially if you have ongoing financial obligations.

This is where Critical Illness Insurance comes into play. Critical Illness Insurance is a separate insurance policy that provides a lump-sum payment to the policyholder upon the diagnosis of a covered critical illness. The lump-sum payment is tax-free and can be used for various purposes, including covering the expenses and financial challenges associated with a critical illness that is not covered by the public healthcare system.

While Canada’s public healthcare system provides essential medical coverage, it does not provide comprehensive coverage for all aspects of healthcare, especially when it comes to critical illnesses. Critical Illness Insurance is designed to fill these gaps by offering financial protection and flexibility in the face of a life-altering medical condition. It can help you maintain your financial stability and access the best possible care during a challenging time.

How much critical illness insurance do I need?

Determining how much Critical Illness Insurance you need is a personal decision that depends on various factors, including your financial situation, lifestyle, and specific needs. Here are some steps to help you estimate the appropriate coverage amount:

Assess Your Financial Situation:

Start by evaluating your current financial status, including savings, investments, and existing insurance coverage.

Calculate your monthly or annual expenses, including mortgage or rent, utilities, groceries, transportation, and discretionary spending.

Consider any outstanding debts, such as a mortgage, car loans, credit card balances, and student loans.

Identify Your Financial Obligations:

Determine if you have any specific financial obligations or goals, such as funding your children’s education, saving for retirement, or paying off debts.

Assess how a critical illness diagnosis might affect your ability to meet these obligations.

Calculate Medical Expenses:

Estimate potential medical expenses associated with a critical illness, including treatments, medications, medical equipment, and specialized care. Consider expenses not covered by public healthcare or other insurance policies.

Factor in Non-Medical Costs:

Recognize non-medical expenses that may arise during your illness, such as home modifications, travel for specialized treatments, child care, and household help. These expenses can have a significant impact on your financial well-being.

Assess Income Replacement Needs:

Determine whether you would need income replacement if you were unable to work during your illness.Calculate the duration for which you might require this income replacement.

Review Existing Insurance Policies:

Understand the coverage provided by your existing insurance policies, such as disability insurance and life insurance.Determine if these policies would cover some of the financial needs arising from a critical illness.

Consider Family and Dependents:

If you have dependents or a family that relies on your income, consider their financial needs and how they would be affected by your illness.

Factor in Savings and Investments:

Assess how much of your savings and investments you are willing to use to cover expenses during your illness.Decide if you want to preserve these assets for future goals.

Consult with a Financial Advisor:

Consider seeking advice from a financial advisor or insurance professional who can help you assess your specific needs and create a customized plan.

Choose a Coverage Amount:

Based on your assessment, determine the coverage amount that would adequately address your financial needs and provide peace of mind.

Remember that the appropriate coverage amount can vary widely from person to person. It should align with your unique financial goals and risk tolerance. It’s also important to review and adjust your coverage periodically as your financial situation changes, such as when you take on new financial responsibilities, have children, or reach retirement age.

Ultimately, Critical Illness Insurance is designed to provide financial protection and flexibility during a challenging time. The coverage amount you choose should offer peace and help you maintain your financial stability, allowing you to focus on your recovery and well-being in the event of a critical illness.

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When to buy Critical Illness Insurance?

The timing of when to buy Critical Illness Insurance in Canada is an important consideration that can impact your coverage and premiums. Here are some key factors to help you determine when it may be the right time to purchase Critical Illness Insurance:

When You’re Young and Healthy:

One of the most advantageous times to purchase Critical Illness Insurance is when you’re young and in good health. Premiums are typically lower for younger individuals because the risk of developing a critical illness is lower. Buying coverage early can lock in lower premiums for the life of the policy.

When You Have Dependents:

If you have dependents, such as a spouse or children, purchasing Critical Illness Insurance becomes more crucial. It ensures that your family’s financial needs are met in the event of a critical illness diagnosis.

Before Developing Health Issues:

It’s generally easier to obtain Critical Illness Insurance when you’re in good health and haven’t been diagnosed with any pre-existing medical conditions. Some medical conditions may make it more challenging to qualify for coverage or result in higher premiums.

When You’re Financially Stable:

It’s ideal to purchase Critical Illness Insurance when you are financially stable and have the means to pay the premiums. This ensures that you can maintain coverage without financial strain.

When You Have Financial Obligations:

If you have significant financial obligations, such as a mortgage, student loans, or other debts, purchasing Critical Illness Insurance can provide peace of mind that these obligations will be met even if you are unable to work due to a critical illness.

When You Have Specific Health Risks:

If you have a family history of certain critical illnesses or lifestyle factors that put you at higher risk, it may be wise to purchase coverage sooner rather than later. Some insurance policies may exclude coverage for pre-existing conditions, so obtaining coverage before a diagnosis is essential.

When You’re Planning for the Future:

Critical Illness Insurance can be a valuable part of your long-term financial planning. If you have specific financial goals or want to protect your assets and investments, it’s worth considering this type of insurance.

Before Major Life Events:

Significant life events, such as getting married, having children, or buying a home, can be ideal times to assess your insurance needs, including Critical Illness Insurance. These events may increase your financial responsibilities and make insurance coverage more important.

When You Can Afford It:

While it’s essential to purchase insurance when you’re financially stable, you should also consider the affordability of the premiums. Choose a policy that fits within your budget to ensure you can maintain coverage over the long term.

After Consulting with an Advisor:

Consider consulting with a financial advisor or insurance professional who can assess your unique circumstances and recommend the right time to purchase Critical Illness Insurance based on your financial goals and risk tolerance.

The timing of when to buy Critical Illness Insurance in Canada should align with your health, financial situation, and life stage. Purchasing coverage early can provide cost savings and peace of mind, but it’s never too late to consider this insurance if you haven’t already. The most important factor is to make an informed decision based on your individual needs and priorities.

Benefits of Critical Illness Insurance

Critical Illness Insurance in Canada offers several significant benefits that can provide financial security and peace of mind to policyholders. Here are the key advantages of having Critical Illness Insurance:

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Financial Security During Critical Illness: The primary benefit of Critical Illness Insurance is that it provides a lump-sum payment to the policyholder upon the diagnosis of a covered critical illness. This lump-sum payout is tax-free and can be used at the discretion of the policyholder. It serves as a financial safety net, helping you cover medical expenses, treatments, and other costs associated with a critical illness.
Flexibility in Use: Unlike some insurance policies with restrictions on how the payout can be used, Critical Illness Insurance offers unparalleled flexibility. You can allocate the funds as needed, whether it’s for medical bills, mortgage or rent payments, household expenses, debt repayment, or pursuing alternative treatments. This flexibility ensures that you have the financial means to address your specific needs during a challenging time.
Protection for Your Loved Ones: Critical Illness Insurance doesn’t just protect you; it safeguards the financial well-being of your loved ones. The lump-sum payment ensures that your family doesn’t bear the financial burden while they support you through your recovery. In the unfortunate event of your passing, the payout can serve as a financial legacy for your beneficiaries.
Coverage Gaps in Traditional Health Insurance: While Canada’s healthcare system is comprehensive, there can still be significant gaps in coverage, especially for certain treatments and medications. Critical Illness Insurance bridges these gaps by providing financial support that isn’t limited to medical expenses. This ensures that you have the means to access the best possible treatments, including experimental or alternative therapies.
Coverage Beyond Disability Insurance: People often confuse Critical Illness Insurance with Disability Insurance. While both provide financial support in times of health-related challenges, they serve different purposes. Disability Insurance typically provides ongoing income replacement if you are unable to work due to a disability, whereas Critical Illness Insurance provides a lump-sum payment upon the diagnosis of a critical illness, regardless of your ability to work. Having both types of coverage can offer comprehensive protection for your financial future.
Additional Peace of Mind: Knowing that you have Critical Illness Insurance can bring peace of mind. In a world where health is unpredictable, this coverage offers reassurance that you and your family will be financially secure if the unexpected occurs. It allows you to focus on recovery rather than worrying about medical bills and other financial obligations.
Coverage for Non-Medical Expenses: Critical Illness Insurance doesn’t just cover medical costs. It can also assist with non-medical expenses that may arise during your illness. These can include travel expenses for specialized treatments, childcare, home modifications to accommodate your condition, or hiring a caregiver to assist with daily tasks.
Preservation of Financial Assets: Critical Illness Insurance can help protect your savings, investments, and retirement funds from being depleted by medical expenses. It allows you to preserve your financial assets for future goals and needs.
Customized Coverage: Critical Illness Insurance policies in Canada can be tailored to your specific needs and budget. You can choose the coverage amount and options that align with your individual circumstances.

In Conclusion

Critical Illness Insurance in Canada is a valuable component of a comprehensive financial plan. It offers financial security, flexibility, and peace of mind during times of severe illness. While it may not be necessary for everyone, it is a valuable consideration for those with specific health risks, financial obligations, or a desire for added security. When considering Critical Illness Insurance, consult with a financial advisor like Canadian LIC who can assess your unique circumstances and help you determine if it’s the right choice for you. Having this coverage provides the reassurance that, should the unexpected occur, your health and financial well-being are protected, allowing you to focus on what truly matters—your recovery and your loved ones.

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Call 1 844-542-4678 to speak to our advisors.

Please let us know if there is anything that should be updated, removed, or corrected from this article. Send an email to [email protected] or [email protected]

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About Critical Illness Insurance

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Is it worth buying critical illness insurance in Canada?

Does my health insurance cover critical illnesses?

How much critical illness insurance do I need?

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Benefits of Critical Illness Insurance

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