Illness Insurance is generally available to those between
the ages of 18 and 65 although some polices accept applicants
and pay out to age 75. The benefit is paid out as a lump sum
and is tax free. The insured may use the benefit in any way
he sees fit. The benefits range from $10,000 to $1,000,000
depending on the policy and the amount of coverage that the
Care policies generally cover the following conditions:
► Heart Attack
► Kidney Failure
► Major Organ Transplants
► Multiple Sclerosis
conditions may be covered by a particular insurer. Policies
that are more comprehensive cover Alzheimer's, Parkinson's
disease, and severe burns.
policies exclude injuries that are incurred while the insured
is under the influence of alcohol or illegal substances, and
operating a machine or vehicle of any kind.
on the insurer, the premiums will be based on the following
► the age of the applicant
► the amount of coverage required
► smoking status
Illness Insurance benefits are tax-free. The premiums however,
are not deductible or eligible for income tax purposes. If
the policy is owned by a business, the proceeds are tax-free
if the corporation does not deduct any portion of the premiums
as a business expense.
Critical Illness Insurance is an important piece to your overall
risk management strategy, it should never be implemented in
place of disability insurance. A disability plan should start
with sufficient long-term income replacement insurance that
will protect the insured from an extensive absence from work.
Of equal importance is adequate life insurance. Following
the implementation of these pieces, Critical Illness Insurance
may be added as it offers an opportunity for the insured to
receive additional support during a difficult time.
The information contained in this commentary is designed
to provide you with general information only, and is not intended
to be comprehensive advice applicable to the circumstances
of any individual. We strongly urge you to seek professional
assistance before acting upon information included herein.