Critical Protection, Life Advance, Health Priorities, Live Well, Transition, Lifecheque...all of these names convey the purpose of the critical illness insurance product: To pay a benefit to insured who contract a major illness, to help them recover...and even take on new projects!
InsuranceINTEL provides a comparison chart of 17 products from 16 suppliers, to let you focus on the features that matter most to your customers. Here are the answers to some frequently asked questions.
At what age can I insure myself or a loved one?
Most insurers are willing to issue a CI policy to people between the ages of 18 and 65, the comparison chart shows.
Some insurers offer an expanded window at younger ages, depending on the type of coverage or premium selected. For example, IA Financial Group offers its Term 100 product with a 10-year premium payment option to individuals ages 0 to 65. Ivari provides access to its T10 coverage to people ages 15 days to 65. Equitable Life Insurance and Sun Life offer coverage from ages 30 days to 65, under certain conditions.
Some insurers offer specific limits for children: from ages 0 to 25 years at Desjardins Insurance, and from 13 days to 17 years at both Beneva (products of La Capitale and SSQ Insurance) and UV Insurance.
How much coverage can I get?
Limits on the amount of CI insurance that a client can purchase vary considerably between insurers, especially regarding the maximum. Many insurers offer a $2 million limit: iA raises the limit to $2.5 million, while Canada Life and Desjardins push it to $3 million.
The minimum amount of insurance available in the market ranges from $10,000 to $25,000, depending on the insurer or type of coverage. Minimum and maximum ages or amounts of insurance may vary depending on premium or coverage options.
Over a lifetime, it’s too expensive. Are there other options?
All 16 insurers offer some form of coverage with a guaranteed premium and long duration. T65 and T75 term insurance guarantee a level payment until the specified age. T100 is lifetime coverage, often offered with an accelerated premium payment period (e.g. in 10, 15 or 20 years). These options are sound but expensive.
A young breadwinner may opt for shorter term coverage, which is more affordable. T10 and T20 coverage are the most common options available. Many insurers also offer Term 15 and Term 25. Some insurers offer longer terms.
Can term coverage be converted?
Clients that have purchased term coverage can convert it to a longer term product at a later date. Note that the RBC Insurance product lets policyholders aged 55 to 65 convert the product to a long-term care policy. This is worth noting because there is only one stand-alone long-term care product left on the market: Sun Retirement Health Assist.
This article is a Magazine Supplement for the September issue of the Insurance Journal.
