Critical illness is something nobody wants. As long as the probability of acquiring an illness is not to be disregarded, itâ€™s crucial that one takes precautions so that one is able to manage with minimal losses the adverse financial implications of a possible instance of an illness. And that is the reason why there are more than half a million critical illness insurance policies operational across Canada.
Life-or-death circumstances are not the only things that policyholders should consider. Even when the ill person lives longer than expected, the insurance company may take time to satisfy itself that there is an eligible claim. One of the measures taken, for example, is to validate whether the insured knew of the critical illness when applying for coverage.
Lately, some Canadian Criticall Illness insurance providers introduced what is referred to as an automatic increase benefit rider. It allows the client to automatically increase their critical illness insurance benefit at planned times. Naturally, the monthly premiums also rise up by the appropriate ratio.
For example, RBC Insurance has a 24-month Automatic Increase Benefit Rider. This particular add-on provides the insured with an opportunity to add to their policy benefit every second policy anniversary for as long as the rider is in force.
What is more, on every increase within the initial decade of your policy, the client can boost their total coverage without having to provide verification of her or his insurability. Customers can add to their coverage by 20% each time. This means you can increase their coverage to 200% within this period.
Be aware that when we say that the RBC increases to the critical illness benefit are automatic, it means that they can not be waived or rescheduled. In case the insured person resists an increase, the add-on automatically terminates. Though, any previously accepted increases and associated premium increases will remain in effect.
Speaking of variances between insurance providers Canada Life has a unique approach to dealing with critical illness policy assessment for pipe and cigar smokers in that they class pipe smokers and cigar smokers as if they were non-smokers on their critical illness and disability plans. This has a great potential to bring down the total price, seeing as smokers occasionally face almost double the rates of non-smokers. This likely has to do with the quality of tobacco used and the "smoking technique" that makes cigars and pipes objectively less harmful.
If you are interested in finding out more on Critical Illness insurance, you are welcome to continue reading on how Equitable Life Insurance upgraded its Equiliving Critical Illness Plan for your children.
News brief prepared by Lorne S. Marr, an insurance specialist and an authority on no medical life insurance, in early October 2011.Â Lorne works with more than 13 Canadian life insurance companies.