DEFINITION: Critical Illness and Disability Insurance in Canada refers to insurance plans designed to provide financial protection and support in the event the insured individual becomes disabled and unable to work due to illness or injury, or is diagnosed with a critical illness outlined in the insurance policy.
FAQs:
1. What is Critical Illness Insurance?
Critical Illness Insurance is a type of insurance that provides a lump sum payment to the insured individual if they are diagnosed with a specified critical illness such as cancer, heart attack, stroke, or kidney failure.
2. What is Disability Insurance?
Disability Insurance provides income replacement in the event the insured person becomes unable to work due to a disability caused by illness or injury. It offers financial support to cover living expenses while the individual is unable to earn an income.
3. Are Critical Illness and Disability Insurance the same?
No, they are different types of insurance. Critical Illness Insurance focuses on providing a lump sum payment if the insured person is diagnosed with a specified critical illness, whereas Disability Insurance provides ongoing income replacement if the insured person becomes disabled and unable to work.
4. Who should consider getting Critical Illness and Disability Insurance in Canada?
Anyone who relies on their income to meet financial obligations should consider getting Critical Illness and Disability Insurance. This includes individuals who have dependents, mortgages, or other financial responsibilities they need to fulfill.
5. How much coverage do I need?
The amount of coverage you need depends on your specific circumstances and financial obligations. It is advisable to consider factors such as your income, monthly expenses, outstanding debts, and potential medical costs when determining the appropriate coverage amount.
6. Can I have both Critical Illness and Disability Insurance?
Yes, it is possible to have both Critical Illness and Disability Insurance. In fact, having both types of insurance can provide comprehensive coverage in the event of a critical illness or disability that prevents you from working.
7. How do I make a claim?
To make a claim, you typically need to contact your insurance provider and inform them about your situation. They will guide you through the necessary steps, which may involve submitting medical documents or other supporting evidence. It is essential to review your policy and understand the specific claim process outlined by your insurance provider.