The High Cost of Critical Illness

Rates have and will continue to increase for Critical Illness Insurance

Will obesity affect the rates of Critical Illness Insurance in the future? No question about it.
First of all, since most Canadians have yet to understand the unique benefits of Critical Illness insurance, let’s be clear about what Critical Illness Insurance is and why it’s so important.

Critical Illness insurance HAS EVERYTHING TO DO WITH LIVING AND ABSOLUTELY NOTHING TO DO WITH DEATH. It’s what most people would need should they ever contract a critical illness (e.g., stroke, heart attack, cancer etc.) and survive the ordeal or diagnosis for 30 days.With few exceptions, a person must simply live for 30 days beyond the date of diagnosis. That’s it! Then a tax-free lump sum is paid out to you - hassle free.

What are the chances of contracting a critical illness you ask? Well, here are a few startling statistics: In Canada, 1 in 2 will contract some form of cancer; 1 in 2 heart attack victims are under age 65; 1 in 3 stroke victims are under 65 and 3 out of 4 families are affected by a critical illness of one kind or another.
The good news is that 75% of stroke victims and 95% of heart attack victims survive the initial attack. That means the passage of 30 days beyond diagnosis is almost a certainty.
But there’s one more thing: The fact that a person survives a critical illness for 30 days may not mean they are going to be fully functional beyond that point. Insurance money would provide the funds needed if, say, you’re not able to perform normal tasks and need nursing care, or if you can’t go back to work for many weeks or even months. Or money may be needed for expensive ramps perhaps or other medical equipment. Who knows? Trips out of country for more timely treatment are expensive.

Now let’s turn to obesity and Critical Illness Insurance;

FACT: Canadians are heavier (do we dare say fatter?) now than they’ve ever been before. Literally thousands of Canadians struggle with their weight. In fact, it’s estimated that almost 50% of Canadian adults are overweight, with 15% considered obese. Some experts are even calling it an epidemic.
But the greatest toll of excess weight is on our health. AN INCREASED RISK FOR HEART DISEASE AND STROKE, WHICH ARE THE LEADING CAUSES OF DEATH FOR CANADIAN MEN AND WOMEN, GOES HAND IN HAND WITH CARRYING TOO MUCH BODY FAT. : It also contributes to diabetes, gall bladder disease, osteoarthritis, and cancers of the colon, breast and prostate.

With automobile insurance, the higher the incidence of reported accidents the higher the insurance premiums. Similarly, with Critical Illness Insurance, an increase in the number of cases of diabetes, heart attack, stroke, cancer and other related conditions, the higher the rates will go and the quicker that will happen.

In the last three years most Critical Illness plans offered by Canadian insurance companies have had rate increases of anywhere from 8 to 15%. The problem that still faces Canadians is the fact that insurance companies can, and may take away the guaranteed rates that currently apply in our Critical Illness plans.

In Europe the insurance companies have the right to increase the cost of an insured’s Critical Illness Insurance plan every five years if the plan is proving unprofitable. Guess why it is always unprofitable every five years? The answer is the increased number of claims every year.

Right now in Canada we have the best of both worlds. We have companies that insure more than 24 covered conditions, and realistic definitions of terms that allow reasonable leeway when it comes to making a claim on a Critical Illness insurance policy. And we’re the only country in the world that has guaranteed rates and Return-of-Premium features: that is, if you die without a claim all the premiums paid are refunded; if you survive to the termination date and don’t claim, your premiums are refunded; and if you claim you get paid a tax-free lump sum payment!But with the growing epidemic of obesity it can be reasonably assumed that it’s only a matter of time, sooner rather than later, that Canadian companies will begin to adopt the European model mentioned above.
So, if you’re obese and in good health; run, don’t walk, to a licensed insurance broker and determine whether you qualify for Critical Illness insurance. It won’t save your life but it could help maintain your lifestyle by preserving your assets!

For more precise information about Critical Illness plans and how it would apply to you, contact one of our Brokers at:
Assure-All Associates
204 - 100 Craig Henry Dr
Ottawa, Ont.
K2G 5W3
866 341 3220
info@assure-all.com