Insuring yourself against cancer
Critical illness insurance vs. cancer insurance: What to know
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Ask MoneySense
What is cancer insurance, how does it differ from critical illness insurance, and how do I know if I qualify?
–Julianne
There are some key differences between cancer insurance and critical illness insurance. The key detail: cancer insurance only pays out if the insured is diagnosed with cancer. Critical illness insurance, on the other hand, pays out if the insured is diagnosed with cancer or other illnesses, which can include stroke, heart attack, coma, paralysis, loss of hearing, loss of sight and other conditions. About 70% of all critical illness claims are for cancer.
Several companies offer critical illness insurance in Canada, whereas cancer insurance is primarily offered by one carrier, iA Financial Group, which offers a product called Cancer Guard. This is a guaranteed issue cancer insurance product that covers you for up to $150,000 (depending on the level of coverage selected) in the event of a cancer diagnosis. No medical exam or blood test is required, says the company’s website.
There are also differences in cost. Cancer Insurance is less expensive than a full critical illness plan, which a lot of people are unable to qualify for because the underwriting is so stringent. So it’s harder for people to qualify under a standard critical illness policy than it is to qualify for cancer insurance.
Cancer insurance offers coverage from day one of a diagnosis of life-threatening cancer, while with most critical illness plans, there’s at least a 90-day waiting period. This is certainly important for people who need treatment quickly.
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Qualifying for cancer insurance
To qualify for cancer insurance, you must be under age 65. You must also answer a short medical questionnaire. Newcomers must be in Canada for at least 12 months to become eligible.
Before signing up for any insurance policy, be sure you understand the terms, definitions and restrictions within it. For more details, talk to your financial planner or insurance agent and read this.
Lorne Marr, is the founder of LSM Insurance, an independent Canadian Life Insurance Brokerage company in Markham, Ont.
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More about insurance:
- Critical illness and disability insurance in Canada
- How to save on disability insurance
- What you need to know about disability insurance
- 8 critical insurance myths
- Critical illness insurance: Is it worth it?
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