Before You Purchase Critical Illness Insurance In Canada Watch This!

You think about it, you're paying to get your money back. If you are fortunate enough to get through that whole period of time with no claims, they'll actually give you all the money that you've put into that particular policy back.

We're just going to talk about riders on critical illness insurance. We're not going to spend a lot of time talking about critical illness insurance, but. But one thing I want you to know, it's something that I highly recommend that everybody has in their life. Because if you think about it and you just think about how many people you've known that have had critical illnesses in their life, statistically it's very high, even some things like cancer. Now they're trying to tell us the stats on cancer are one out of every two people. So there's lots of good reasons why you should have critical insurance. But today we're just talking about what else can you put on that critical insurance as riders? And why might you consider that? Roman, what's one of those things that you could put on to a critical illness insurance policy as a rider? And why would somebody even do that?

Yeah, that's a great question, Dan. Thank you so much. And so critical illness can be standard, standalone as a critical illness without riders, but you can additionally put additional riders, which is a benefit which you're paying for in order to receive this additional benefit. So this is what rider is. So one of the riders that I wanted to mention is disability waiver of premium rider. Right. So many companies have this rider and they may vary from company to company, but in general, what this rider allows you to receive is, is if you get disabled within a specific period of time. So the insurance company will first refund you the premiums that you paid in this period, and moving forward.

They will be paying your critical illness premiums for you. This is what disability waiver premium is.

Exactly. Well, that's a good one. And it's a good one to have because, hey, you know, disability is real. And again, it just, you know, provides protection. And that's what this is about. Always about protection.

Yeah, Yeah. I just wanted to add that disability, when you get disabled, then the main idea is that your. Your income is stopped. You no longer have income from your job unless you have passive income. Right. So that's why it is very important to make sure you are still making those critical illness payments. That's why this rider, this benefit allows you to continue your critical illness insurance even though you got disabled.

All right, thanks. That was a great explanation for people around disability waiver or premium. So another one I wanted to mention again, you know, whatever life company you're working with, there's going to be some differences in what they offer for riders. Some offer an additional accidental death rider. That one's pretty straightforward. So that's if you want extra protection for your family, if you die accidentally, then you can put that rider on and it just helps your family at that time. And that's all that one is about, simply accidental death. And you can put more death benefit on your life. What's another one, Roman?

Yeah, another one the insurance companies offer. Again, not every insurance company has this rider, but it's a great one to have, which is a second event. So second event rider helps you receive a payout in a condition where you already have been diagnosed with something and you already got a payout from the insurance company as a claim. And God forbid anything happens to you with something else. For example, you got a payout as, for example, for a stroke or maybe for a heart attack. And then if you have been diagnosed with something else within the same period of this policy, then you can actually receive additional payout from the insurance company, which is a very good rider to have because the probability is more than zero. Right. Would you not agree, Dan?

Yeah, and that's a key one that adds value because that second condition is not related to the first one. So there's some very specifics that you need to be aware of. But again, what we're really hoping for you to understand is that you really got to take time and investigate what's the best critical illness insurance policy for you and your family. And that just helps you again, get a good, you know, get good protection in place and there's lots of options. That's what we're telling you. So another rider that some companies offer to those clients that own their contracts is a return of premium on expiry. So that one's just what it says. So if you have paid premiums all the way through right up until your critical illness expires, and you haven't had any payouts or you don't have any pending payouts, they will pay you for all the premiums that you put into the policy. So when you think about it, you're paying to get your money back. If you are fortunate enough to get through that whole period of time with no claims, they'll actually give you all the money that you've put into that particular policy back. And again, it's going to cost you. Like every one of these riders, there's Always a charge to have them on because there's a benefit. So you always pay for every benefit that's out there. So that's a great one. That's one I wanted to share. What else have we got on the list of riders that are available? Roman?

Yeah, that's. So this rider is my favorite because I just wanted to add to this rider is that not only you receive all your premiums back, but you also receive all the premiums that you're paying for this specific rider package. For this charge that you pay for this rider, you're also getting back, which is also great. So basically you're getting all your money back. Yeah, we understand that by that time your money will not be as valuable as it is today because of inflation and stuff like that. But hey, how often do we get this option with car insurance or home insurance? Right. So it's great to have it at least.

The amount of money you paid back, even though it is kind of lost its purchasing power. But still, it is a great benefit to have and it is my favorite. So I always add it to my personal policies and I recommend it to my clients. Another one that we have that we have is return of premium on death. So if you never been diagnosed with anything that is covered under this policy and you died of any cause, then the insurance company will actually, if you have this rider in place, if you are paying for this rider, then the insurance company will actually return all of the premiums that you paid by that point, by that moment, to your beneficiaries, which is also great addition to.

The family.

Yeah, I know. That's a good one. It's. Yeah, it's not for your benefit. It'll be for someone else's benefit. But again, it's. Again, it's about recapturing the cost of something that you didn't use, because even though it was there and it was ready to use, you just didn't. You're fortunate enough not to have to use it up until that point and you're unfortunate enough to die. So it's kind of one of those things. But, you know, when I think about critical illness and all the riders that are available and all those pieces, the other thing I always try to encourage people and help them understand is don't wait too long to put it in place. Because as you get older, it becomes more and more difficult to find companies that will give you critical illness insurance. Because, hey, let's face it, when you get into being my demographic, so that's over 60.

Less companies want to take a chance on you being critical ill. Because statistically, hey, all you got to do is go look at the stats out there. As you get older, the likelihood of you getting some illness goes up. So just a few things to be aware of. Again, that particular piece varies from life company to life company, and some will, you know, give you critical illness, as, you know, at an older age than other ones. So you might have to do a bit of shopping around. I'm just going to encourage you to get and find somebody that can help you with this process. And you know, here at Ascendant, we believe in helping people with all things financial. And one of it is just protection from some of those things that could happen in life. So that's why we talk about this. And it's something that's really important and we believe in that People at least are educated on what's available and why they should have it. What are the thoughts have you got about riders related to critical illness? Roman?

So we covered pretty much all the riders that we wanted to mention today. There may be more riders. For example, one that is also very popular is the loss of independent existence. So if someone cannot, you know, during to some condition, cannot actually take care of himself, you know, for example, cannot go to bathroom, cannot go to, you know, cannot take food by himself, he needs assistance. So that that rider will cover this, this condition, and.

The insurance company will list those activities that person should not be able to do for a certain period of time. And then once it happens, then insurance company will actually also pay out. Loss of independent existence. But there can be more riders from company to company. But the main idea here is that you need to understand, first of all, you need to understand what's out there, what's available, and what those terms mean. So you can, you know, better, better idea, better understanding what's available to you, what you can decide on if you want to decide and return a premium or if you want to decide on, you know, accidental death. Sorry, if you want to decide on something else, then, yeah, you can choose different riders. But the main idea is you need to take action now. You don't have to wait till you're diagnosed with something because it will be too late to put insurance on. Insurance company will not approve you if you have something existing. So main idea is don't wait.

Take action now and protect yourself and your loved ones.