WHICH CI POLICY SHOULD YOU PURCHASE?

As I mentioned in the previous CI entry, everyone should begin with a “Simplified Issue” product in order to obtain coverage for the 3 (or 4) key illnesses, which are, cancer, heart attack, stroke, and (if 4 are provided) Coronary Artery Bypass surgery. Once your policy is in place, you can start to look at more complete coverage. At least we have moved away from the “My definition is better than YOURS” war and advisors do not have to be doctors. My professional opinion is that you can basically choose the company/product you most like/prefer and go with that.

That being said, there are points which may be important to you as an individual. Do not put too much emphasis on the total number of illnesses covered, as those additional illnesses generally represent an extremely tiny percentage of claims. However, should you have a personal reason for wanting coverage for one of those additional illnesses; that may sway your purchasing decision.

Certain contracts provide an early payment of part of the benefit prior to completion of the (generally) 30-day survival period. While admittedly useful, you must decide what level of importance you place on this.

Of somewhat (at least in my opinion) more importance is the coverage offered for less severe illnesses (early stage prostate cancer for example). The points to consider here are (1) How much coverage is offered? and (2) Does it reduce the amount payable for more serious illnesses? The actual illnesses covered under this feature are normally of lesser importance, unless you have a personal reason (yet again) for wanting that illness covered.

Another point is the coverage offered by “Best Doctors”. This is an often overlooked feature, but having listened to many people agonize over: “Am I getting the proper diagnosis?” “Why do I have to wait so long?” etc, this feature is a far more important item than it is often considered to be. Do not worry so much about care outside of Canada or in the private system. There are far cheaper and even better ways to provide for THAT than Critical Illness insurance. DO concern yourself with knowing that the help you will need in making choices and obtaining fast answers will be there if and when you need it. KEY questions include: “Who are these services available to? Is it only to the insured? To the immediate family of the insured? To the extended family of the insured – including in laws?”

In my opinion, these are some of the important points to consider when deciding on a CI policy for an adult.

What about a policy for a child?

I know that no one wants to think of their child being diagnosed with a serious illness, but it DOES happen, and when it does, it can be shattering financially as well as emotionally. If our child is seriously ill, there are only two things on our minds: “Make him/her WELL!” and “Be there!” Work is a non-starter. Money? If we have it we will spend whatever it takes. If we do not, we will beg or borrow all that we can. Over Christmas 2010, my niece went through a terrible month before her 6-year-old daughter’s tumor was confirmed benign and subsequently removed. At least consider purchasing CI for your child. If you do, there is one “best” product out there for children. I will neither purchase nor sell a product that either terminates at age 18 or 25 or that does not provide guaranteed rates beyond those ages. Rates will be higher or not guaranteed, or there will be other weaknesses. I will only buy, or sell, a permanent policy. Also, for a child, I vastly prefer a “20 Pay” policy where premium payments end after 20 years. Add it all up and today (March 25, 2011 – I will update this comment as needed) there is one product/policy today that is the best in Canada and that I suggest to clients: the one offered by Desjardins Financial Security.

Click these for more information on the respective topics :
Long Term Care Insurance
Disability Insurance
Critical Illness Insurance
Life Insurance
Mortgage Insurance