In a move to demystify critical illness insurance for consumers in Canada, the Canadian Life and Health Insurance Association (CLHIA) has published a comprehensive guide.
The 26-page resource, now available on the association’s website, aims to shed light on the workings of critical illness insurance, along with the benefits and financial safety net it provides.
Stephen Frank, the CLHIA’s president and chief executive, highlighted the significance of the guide, noting: “Over two million Canadians are covered by critical illness insurance through individual or group plans.”
He suggested that the guide will be instrumental in illustrating the vital role that critical illness insurance plays in offering individuals enhanced financial flexibility upon diagnosis with a severe condition.
The guide comes as a response to the need for clarity regarding critical illness insurance, which offers a non-taxable lump sum payment to policyholders diagnosed with major illnesses such as cancer, heart attacks, strokes, multiple sclerosis, or Parkinson’s disease.
The payout is intended to help with the various personal expenses that arise due to the illness, with policyholders afforded the freedom to use the funds as they see fit.
Despite being available in Canada for three decades, critical illness insurance is not as widely understood as other insurance types. “A Guide to Critical Illness Insurance” aims to bridge this knowledge gap by answering frequently asked questions such as the differences between critical illness insurance and other insurance types like life and disability, the conditions covered under critical illness policies, and common limitations and exclusions.
The guide was produced by product experts from Canada’s life and health insurers, providing impartial, free guidance designed to assist consumers in navigating their options.
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