Critical Illness Insurance is one of the newer insurance products available in Canada. But most insurance companies have been gearing their plans towards adults and the work industry.
Parents should know that there are critical illness insurance plans available for children and youth. There are certainly many illnesses that one can become afflicted with as an adult but a child should be protected from childhood illnesses as well.
Insurance companies are offering plans that cover illnesses like Type 1 diabetes, cystic fibrosis, cerebral palsy, muscular dystrophy, congenital heart disease.
Features and optional benefits of the plans include the option to convert the policy to an adult policy when the child becomes 25, without further underwriting ( a portion or the full policy can be converted). You can ask for a guaranteed premium, for a supplementary benefit for certain non-life threatening conditions. As well, you can have your premiums returned when the policy expires (when child turns 25) if you choose not to convert the policy.
As with any critical illness policy, the insured must meet the test for the survival period before the policy can come into force.
The “survival period” is the number of consecutive days the insured person must be alive and not have experienced irreversible cessation of all functions of the brain after the date the written diagnosis is made.
For most critical conditions, it is 30 days. For Bacterial Meningitis, Paralysis and Type 1 Diabetes it is 90 days. for Loss of Speech it is 180 days.
The diagnosis must meet the definition of the condition.
At Aaron Waxman and Associates, we take on cases where claims for critical illness insurance have been denied. You can see where claimants may have difficulties with their insurance companies with respect to the definitions of survival periods and definitions of conditions.
We have successfully handed these claims and continue to successfully protect our clients’ interests and rights against insurance companies.