| Benefits of CI |
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Employee benefits. These usually include life insurance and some short-term disability income insurance, but do not cover large expenditures related to a critical illness. The benefits are not portable—and you do not own the plan—when you change jobs or quit work. Government benefits. Health plans offered by provincial governments are not established to help you progressively build an RRSP or replace your invested wealth depleted by unexpected costs (due to job loss and overwhelming medical expenses). They only provide basic health care, not drugs or related pharmaceuticals (costing consumers $13,707 million in 2004). If one has no money, they may also pay a small disability benefit to subsist on. Life insurance benefit. Life insurance is designed to pay out a lump sum benefit to your dependant survivors when you die. In the case of a critical illness, you continue to live. The similarity between life insurance and CI insurance is that a lump sum benefit is paid out. The dissimilarity is that the CI benefit is directly paid to the insured—to the one experiencing the critical illness, to utilize while alive. Life insurance can pay out a living benefit (as it is referred to) in some cases, if the coverage is provided under the contract and an illness is diagnosed as terminal. However, a critical illness is not always a terminal illness. Furthermore, the payment of a living benefit is an advance of life insurance proceeds and reduces the amount payable to beneficiaries at death. Disability income insurance benefit. Disability insurance is designed for income replacement and is important coverage that normally provides an ongoing income for a predetermined period of time, up to age 65 (in most cases, reduced to 60-70% of pre- disability income). It is designed to cover normal living expenses when a disability interferes with working—such as a typist breaking her arm. CI insurance, on the other hand, is designed to provide a substantial lump sum amount of money up-front to meet the large additional expenses related to living through a critical illness crisis. Long-term care benefit. This coverage helps pay for in-home or nursing home expenses associated with chronic illnesses related to cognitive or motor impairment when one requires assistance with bathing, eating, dressing, or toileting. A CI lump-sum living benefit. "Living"—meaning useable while you are living—can provide immediate financial independence for you and your family—some payouts as high as $2,000,000—usually paid 30 days after the diagnosis of a covered critical illness. Such financial stability can help you recover in dignity while being able to easily pay for any necessary medical treatment. The lump sum remains payable regardless how long the insured survives—and pays regardless of your ability to work.
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There are numerous differing benefits derived from various insurances and the government. However, a comparison shows that CI is the only benefit that protects your wealth against erosion if you have and survive a serious critical illness.