DEFINITION:
Disability and Critical Illness Insurance: Disability and critical illness insurance refers to a type of insurance coverage designed to provide financial protection to individuals who are unable to work due to a disability or a critical illness.
FAQs:
1. What is disability insurance in Canada?
Disability insurance in Canada is a type of insurance coverage that provides income replacement to individuals who are unable to work due to a disability. It pays a portion of the insured person’s income on a regular basis.
2. What is critical illness insurance in Canada?
Critical illness insurance in Canada refers to a type of insurance coverage that provides a lump sum payment if the insured person is diagnosed with a specific critical illness. This payment can be used to cover medical expenses, debts, or other financial obligations.
3. What does disability insurance cover?
Disability insurance typically covers a percentage of the insured person’s pre-disability income. The coverage can be for a specific period or until the insured person reaches a certain age or recovers from the disability.
4. What does critical illness insurance cover?
Critical illness insurance covers a range of specified critical illnesses, which may include cancer, heart attack, stroke, organ transplantation, and paralysis, among others. The policy will outline the specific illnesses covered and the payout amount associated with each.
5. Can I have both disability and critical illness insurance?
Yes, it is possible to have both disability and critical illness insurance. Having both types of coverage can provide more comprehensive financial protection in the event of illness or disability.
6. Is disability and critical illness insurance mandatory in Canada?
No, disability and critical illness insurance are not mandatory in Canada. However, it is strongly recommended to consider having these types of insurance coverage to protect oneself and their financial well-being in case of unexpected circumstances.
7. How much does disability and critical illness insurance cost in Canada?
The cost of disability and critical illness insurance in Canada varies depending on various factors such as age, health condition, occupation, and coverage amount. Generally, premiums for disability and critical illness insurance are determined based on the level of risk associated with each individual.