CLHIA-ACCAP - Consumer Information

A GUIDE TO CRITICAL ILLNESS INSURANCE 8 You can purchase an individual policy through an agent or broker, or online. Your answers to a set of health and personal background questions are typically used to determine the coverage you are eligible for and the price, or premiums, that you will pay. The maximum amount of coverage you may purchase is relative to a multiple of your annual income. You own the policy as long as it remains in effect and even if your health changes. Group insurance may be offered to you through your employer or an association you belong to. To be eligible, you need to satisfy the employment or association criteria set out in the plan. In the case of a workplace plan, your employer is the policyholder and may pay some or all of the premiums for your coverage. Coverage can be offered as basic, alternatively called mandatory, which means you will automatically be enrolled for a given amount and the employer may pay all or some of your premiums. You may also have access to optional coverage, where you can choose to enroll and will pay the full premium amount yourself. In many cases, you will not need to answer health questions to qualify for up to a given amount of coverage. If you leave your employer or association your coverage will terminate; though some plans allow the possibility to transfer to an individual policy. Sometimes offered with a mortgage, a bank loan, car financing or other debts, this type of critical illness insurance covers your loan payments, usually for a certain amount of time, if you are diagnosed with a covered critical illness. Some credit card balances can also be insured this way. Critical illness policies associated with a mortgage may cover your monthly payments for a set period. If your mortgage is renegotiated, you will need to reapply and requalify for this type of coverage. Applying for special purpose policy usually involves checking a box on your credit application or completing an insurance application after approval of the credit, indicating that you would like to have this coverage. As special purpose coverage doesn't usually involve an insurance agent, you will need to look into the coverage and policy details yourself. Individual policy Group plan Special purpose How is critical illness insurance sold? Critical illness insurance is available in different ways, the most common are individual policies and group plans. It's also available through special purpose plans, that are often linked to credit products like a mortgage. It is possible to have more than one type of policy in force at the same time. CRITICAL ILLNESS INSURANCE POLICIES Tip: You may also have an option to purchase critical illness coverage for your spouse and children. The covered conditions for child policies may be specific to childhood diseases or conditions.

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