Sneha is a 34-year-old marketing manager and the mother of two who recently went through a health scare that made her reconsider the security of her family’s future. She felt that, despite having a good Life Insurance Policy, her financial safety net in case of a critical illness was not as good as she imagined it would be.
And like 60% of Canadians, she did not really know whether she would be able to tack on Critical Illness Coverage to her existing Life Insurance. Being nervous at the thought of having to go through the exercise of selecting an insurance policy, Sarah put it off.
Are you also like Sneha? She thinks her financial plan could use a few more insurances to make it stronger, but she doesn’t know where to start because there is so much jargon and so many choices. You are definitely not alone in this. So many are in your predicament and wonder whether they can add critical illness to an existing Life Insurance Policy. In this blog, we will look at how to add Critical Illness Cover to an existing policy to protect you and your family.
So first, you must understand that Life Insurance contracts are not the same. There are Life Insurance Policies developed that have a feature to attach another benefit, like the case of Critical Illness Insurance, with the help of a rider. A rider is an extra provision tacked onto the basic policy. It allows policyholders like you to tailor their Critical Illness Insurance Coverage to suit a specific requirement without having to handle more than one policy.
Alternatively, in case your existing policy doesn’t facilitate this feature, you could either upgrade to a new plan that has ‘Critical Illness Insurance Plans’ incorporated within it or buy one as a standalone Critical Illness Insurance Policy. The details on each of these are what we will consider.
Just be sure to get acquainted with the terms of your present policy before you draw your conclusions. It may be tedious to do, but this way, you do not get yourself into some mess later. Go through your policy to see if there is a chance of conversion options, or whether it is renewable to include Critical Illness Cover. In most cases, you can beef up your insurance with very little change.
Consider the case of Michael, a freelance content writer who never really thought much about critical illness until his father had a stroke. That incident was an eye-opener for him, one in which he realized that a critical illness can be very damaging financially. The realization of such a fact made him attach Critical Illness Cover to his Life Insurance Policy, which gave him peace of mind that he would be able to support himself and his family in case such an incident were to happen to him. Know more on Can you take out a Critical Illness Cover without Life Insurance?
And then there is Liara, who, after her first delivery, became serious and added Critical Illness Insurance Coverage to her Life Insurance Policy. Her motive is obvious: in the unfortunate event of her falling ill from a serious illness, the expenses both for her ailment and the family’s lifestyle would be taken care of, and she would be in a better state of mind with which she would be able to concentrate on getting better.
When you combine ‘Life Insurance with critical illness’ covers, you’re not just simplifying your paperwork; you’re strategically fortifying your family’s financial future. To know the difference between Life Insurance and Critical Illness Insurance click here.
Let’s explore this approach through a few important points that highlight the undeniable advantages of blending these essential Critical Illness Insurance Plans into one comprehensive strategy.
Effortless Tracking: Imagine managing just one policy with all the benefits you need. That’s the convenience of combining your covers. You reduce the hassle of keeping track of multiple premiums, renewal dates, and terms.
Real-life Insight: Take John, for example, a busy IT professional who juggled multiple insurance policies. After merging his covers, John now enjoys the simplicity of a single premium and one set of paperwork, saving time and reducing stress.
Reduced Premiums: Often, adding a critical illness rider to your existing Life Insurance Policy can be more cost-effective than purchasing a standalone critical illness plan. You benefit from lower combined premiums while extending your Critical Illness Insurance scope.
Real-life Insight: Maria, a school teacher, opted to add a Critical Illness Cover to her Life Insurance Policy and discovered that the combined premium was significantly less than the two separate policies. This saving allowed her to allocate funds towards her son’s education fund.
Wider Coverage: By integrating Critical Illness Coverage with your Life Insurance, you ensure a broader safety net. This coverage extends beyond just life protection, offering financial aid during the critical times of battling severe illnesses.
Real-life Insight: When Alex was diagnosed with cancer, his combined ‘Critical Illness Insurance Plans‘ and Life Insurance provided a lump sum that helped cover his treatment costs without tapping into his savings, which were meant for his daughter’s college fund.
Accessibility to Funds: The Critical Illness Insurance Plan typically pay out a lump sum upon diagnosis of specified conditions. This feature allows you to access necessary funds quickly without the financial strain of waiting periods.
Real-life Insight: Sarah, who we met earlier, utilized her Critical Illness Insurance payout to cover immediate medical bills and ongoing treatments, which enabled her to focus on recovery rather than financial pressures.
Income Replacement: If a critical illness leaves you unable to work, the lump sum from your insurance can act as a temporary income replacement, helping maintain your standard of living.
Real-life Insight: Consider the case of Tom, a freelance photographer, who suffered a stroke. His Critical Illness Cover provided a financial cushion that compensated for his lost income during recovery, ensuring his family’s expenses were covered.
Stress Reduction: Knowing that you and your family are protected against both the eventualities of death and critical illnesses can provide immense peace of mind. This coverage ensures that your family’s future is secure, no matter what life throws your way.
Real-life Insight: Emily, a single mother, chose to add Critical Illness Cover to her life policy for the sheer peace of mind it offered. She wanted to ensure that her children would be taken care of financially, regardless of any health complications she might face.
Isn’t it reassuring that with combined cover, you can protect both the family’s lifestyle and your health at the same time? Remember, today’s decisions about your insurance coverage will determine your family’s financial ability tomorrow.
After all, complexity shouldn’t get in the way of a good decision. Contact a Canadian LIC advisor now to learn more about how ‘Life Insurance with critical illness’ and ‘Critical Illness Insurance Plans’ can be customized to your life’s story, ensuring your family’s future with every policy you choose.
This blog has provided you with various scenarios and what actions you can take to add Critical Illness Coverage to your existing Life Insurance. Now, it is your chance to do something before it is too late. Before you get a wake-up call like Michael or a life-changing event like Liara, review your current coverage today and think about how adding Critical Illness Coverage can help you feel more at ease.
With Canadian LIC, you have a partner who understands what it really means to give the fullest advantage to the customer and is willing to help you review your options to find the best way forward for you and your family.
Check with Canadian LIC today and take the most important step in securing your family’s financial future from the unpredictability of critical illnesses.
Find Out: What cancers are not covered by Critical Illness Insurance?
Find Out: Does Critical Illness Insurance cover death?
Find Out: The right age to get Critical Illness Coverage
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Canadian Life and Health Insurance Association (CLHIA): Overview of Critical Illness Insurance in Canada. This site provides general information about what Critical Illness Insurance covers, the types of plans available, and tips on what to consider when buying a policy.
Website: CLHIA – Critical Illness Insurance
Insurance & Investment Journal: Articles and news updates on insurance products in Canada, including Critical Illness Cover and how it integrates with Life Insurance.
Website: Insurance & Investment Journal
Canadian Insurance Top Broker: This source offers insights from industry experts on the latest trends and options in Critical Illness Insurance, helping consumers make informed decisions.
Website: Canadian Insurance Top Broker
Financial Consumer Agency of Canada (FCAC): Provides information on various types of insurance, including critical illness, and offers advice on managing and choosing insurance plans effectively.
Website : FCAC – Insurance
Insurance Bureau of Canada (IBC): Offers detailed explanations of insurance products, including critical illness, and their importance in financial planning.
Website: IBC – Critical Illness Insurance
These resources will provide a deeper understanding of Critical Illness Insurance and Life Insurance integration, helping you make well-informed decisions about your insurance needs.
We’re interested in understanding the challenges and concerns you may have experienced when considering or adding Critical Illness Insurance Coverage to an existing Life Insurance Policy. Your feedback will help us improve our services and provide better information to those in similar situations.
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