Verified claims provide a lump sum, tax-free payout that can cover costs and hidden expenses that can add up quickly, says Brian Henderson, regional vice-president, field sales, Western Canada, at RBC Insurance Services Inc.Critical illness insurance is gaining prominence slowly but surely as more and more Canadians become aware of the flexibility the coverage provides and more companies make CI part of their employee group health benefits plans.
“When you think about the things that you weren’t expecting, especially when you have a critical illness, you need to have adequate coverage to pay for things without having to dip into your savings,” says Mr. Henderson. Ms. Freed tells the story of an advisor who thought he had covered off everything very carefully when he sold a CI policy to a client. Sometime after the policy was sold, the client caught a bad flu and was off work for two weeks. He believed that because he wasn’t paid for lost time, he could claim it on his CI policy.
For example, RBC Insurance’s CI products can cover more than 30 illnesses and conditions, provide for a choice of premium and term options, while the lump-sum benefits can range from $25,000 to $2-million.