How Much is Critical Illness Insurance in Canada?
It makes sense to be worried about the financial impact on your family if you are unable to work. If you are diagnosed with a critical illness, this type of insurance can cover your income and allow you to focus on your treatment.
However, one of the biggest questions is how much is critical illness insurance. That’s what we’re going to find out here. Along with giving your approximate costs, we’ll also go through the factors involved so you can understand your quote. Let’s get started!
What is Critical Illness Insurance?
With critical illness coverage, you will get a tax-free lump sum if the insured person is diagnosed with a covered illness. The coverage can vary from one provider to the next, but it usually includes the likes of cancer, serious heart issues, stroke, organ failure, brain disorders, and much more.
The payout can be used in whichever way the policyholder wishes and there are no strings attached. For example, if their medical bills are covered, they may wish to pay off a mortgage. Critical illness insurance gives you plenty of flexibility you may not get from other insurance types.
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How Much is Critical Illness Insurance in Canada?
The average cost for critical illness insurance is around $75 per month. However, this isn’t a figure you should focus on too much as it can be substantially more or less depending on your circumstances.
The general range for non-smokers is $25 to $200 per month, with the biggest factor being your age. For smokers, you can expect to pay anywhere from 40% to 100% more for your premiums than a non-smoker due to the associated health risks.
Factors That Affect the Cost of Critical Illness Insurance in Canada
As we mentioned, your individual circumstances will play a huge role in exactly how much you pay. Let’s take a closer look at these key factors.
1. Age
Age is usually the most significant factor in all types of health-related insurance. The older you are, the more likely you are to develop a critical illness. This means the cheapest time to get critical illness cover will always be as soon as possible.
2. Health and Medical History
Of course, not everyone at the same age is at the same level of health. This is why your current health status and medical history will also be taken into account. This is usually done in the form of a questionnaire, but a medical exam may also be required.
If you have a pre-existing condition, you’ll usually face higher premiums or this condition can be excluded from your coverage. This may also be the same if you have a family history of a certain illness. It’s always vital to double-check you’re covered for everything you want to be included.
3. Smoking Status
Smokers generally pay much more for their critical illness insurance. Smoking increases the risk of many of the covered conditions, such as cancer, heart attack, and stroke. This increased risk for the insurer is passed on to the customer.
4. Coverage Amount and Term Length
The coverage amount is how much will be paid out if the policy is activated. The higher it is, the more expensive the policy. Some may also add a term into their coverage, which is how long the policy will be active. The longer the term, the more you’ll pay.
How to Reduce the Cost of Critical Illness Insurance
If you’re worried about the cost of critical illness cover, there are a few things you can do to reduce it and lower your costs:
1. Buy When You’re Young and Healthy
With age being the biggest factor, you’re most likely to get the best deal when you are young and healthy. If you put off getting critical illness insurance, you may come to regret it if you do develop a health issue.
2. Compare Quotes from Multiple Providers
Rates will vary significantly between providers. Due to this, it’s vital to shop around and compare quotes. Working with an insurance broker who can access a wide range of providers can be a great way to find a cheap quote without doing all the hard work.
3. Choose a Lower Coverage Amount
You should ideally have enough coverage to meet all your financial needs. Having more than this can increase your premium. However, even lower coverage can be a great idea as it can help with vital expenses.
4. Bundle Insurance Products
Some insurance providers will offer you discounts if you bundle critical illness insurance with other types. This can reduce the overall cost you pay for all your insurance products.
Do You Need Critical Illness Insurance?
Critical illness insurance is important for everyone, as you never know what life will throw at you. That being said, there are people to whom critical illness insurance can be particularly important. Let’s find out what they are:
No existing coverage – If you don’t have any coverage privately or through your employer, critical illness insurance can be vitally important.
Minimal savings – Without substantial savings, you are more vulnerable to a financial emergency. Critical illness cover can be your safety net.
Family and dependents – If you have a partner and/or dependents that rely on your income, critical illness cover can give you financial stability.
Final Thoughts
How much is critical illness insurance in Canada? As we’ve seen, it’s not a simple answer. But for a $100,000 policy, you can expect to pay between $25 to $200 as a non-smoker. That mostly depends on your age, but other factors can play an important role.
The only way to know exactly what you’ll be paying is by getting a quote. You can either search for insurers yourself or get an insurance broker to do it for you. If you’re looking to get critical illness insurance, contact Ron Johnston Insurance today and we’ll be happy to answer any questions you have.