Critical illness is nothing one would want to try. But since the probability of encountering critical illness is always there, it’s crucial that we take precautions so that one is able to manage effectively the adverse financial implications of a hypothetical instance of an illness. And that is why there are more than half a million critical illness policies currently in force in Canada.
Life-and-death situations are but the tip of the iceberg. Even when one survives for a longer time than was initially anticipated, the insurer may take time to assess the claim. For example, it may take some time to confirm whether the claimant knew of the critical illness at the time of the initial application.
Lately, some Canadian Criticall Illness insurance providers brought about what is called an automatic increase benefit rider. It enables the client to automatically increase their critical illness benefit at agreed-upon dates. These automatic increases also mean that the premiums in accordance with the benefit increase.
For example, RBC Insurance has an Automatic Increase Benefit Rider, which allows the insured to add to their policy benefit once every 24 months.
On each increase date for the first decade of your Critical Illness plan, the customer can top up his or her insurance coverage without fresh check-up of insurability. The maximum rate of increase will be 20% of the originally agreed-upon policy benefit. Effectively, this means that you can double their coverage within a decade.
One caveat: RBC automatic benefit increases may not be postponed or avoided. If the customer turns down an increase, the rider terminates, even though previous increases will remain in effect.
Unrelated to coverage increases, Canada Life is the only company that has a specific attitude when act toward critical illness policy assessment for cigar and pipe smokers in that they treat these individuals as if they were non-smokers on critical illness and disability policies . This fact has a significant potential to cut down the resulting price.
Brought to you by Lorne S. Marr, an independent insurance broker and an expert on no medical life insurance . Lorne works with more than a dozen Canadian life insurance companies.