CLHIA-ACCAP - Consumer Information

A GUIDE TO CRITICAL ILLNESS INSURANCE 7 CRITICAL ILLNESS INSURANCE POLICIES This table describes how critical illness insurance differs from similar or related insurance products. The benefit is a non- taxable benefit paid as a lump sum. Benefits are usually paid monthly to replace a portion or all of your income. They may be taxable or non-taxable depending on how your premiums are paid. Benefits are typically paid monthly. They are not taxable. The benefit is paid in a non-taxable lump sum. Type of insurance Critical illness insurance Disability insurance Long-term care insurance Life insurance How is it paid? This payment is not related to whether or not you can work. Your diagnosis must meet the definition of the critical illness and any other qualifying requirements as defined in your policy to receive payment. You may have access to group coverage or purchase it as an individual. Disability benefits are an income replacement benefit paid during a period you are unable to work. The definition of disability must be satisfied to be eligible to receive benefits. For most disability benefits policies you must be totally disabled from performing your occupational duties and satisfy a waiting period. This coverage may be offered by your employer or purchased by an individual. Provides coverage in the event you become unable to care for yourself or independently manage your activities of daily living such as bathing, dressing, or feeding. The need for specialized long-term care can stem from a chronic illness, cognitive or physical impairments, or age conditions. Your policy may be for facility or home care, which covers either the costs towards a long-term care facility or to pay for a caregiver in your own home. The policy will designate what kind of coverage you have. This coverage is purchased by an individual. A life insurance claim is payable upon death of the insured person. It is a lump sum paid to a beneficiary (or beneficiaries) designated by the policyholder or the policyholder's estate. You may have access to group coverage or purchase it as an individual. What does it cover?

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