Critical Illness

Critical Illness vs Bank Mortgage Critical Illness

 

Critical Illness+

Bank Mortgage Critical Illness

Premiums

Gtd level for 10 years.

Gtd Renewable to age 85.

Market competitive.

Gtd Level for duration of mortgage

Not guaranteed renewable.

Coverage

Gtd level for duration of policy

Decreases as mortgage is paid down

Primary Coverage

25 Conditions:

Heart attack, Cancer, Stroke, Plus:

Alzheimer's disease, Aortic surgery, Aplastic anemi,a Bacterial meningitis, Benign brain tumor, Blindness,
Coma, Coronary artery by-pass surgery, Deafness, Heart valve replacement, Kidney failure,
Loss of independent existence, Loss of limbs, Loss of speech, Major organ failure on waiting list,
Major organ transplant, Motor neuron disease, Multiple sclerosis, Occupational HIV, Paralysis, Parkinson's disease, Severe Burns

3 Conditions:

Heart attack, cancer, stroke.

Secondary coverage

4 conditions:

Angioplasty, Ductal carcinoma in-situ of the breast, Early prostate cancer, Superficial malignant melanoma

None

Cancellation

Non-cancellable by insurance company

Most banks have a full page of conditions where they can cancel your policy.

Underwriting

Underwritten at time of application.

Underwriting done at time of claim.  Errors found at that time can lead to denied claims.

Policy owner

You

The bank

Beneficiary

Your choice

The bank

Provincial Sales tax on premiums

No

Yes

On A Personal Note:

I purchased an individual critical illness policy for my kids when they were younger. At the age of 23, my daughter developed superficial malignant melanoma.

She is now of course uninsurable for both life and critical illness insurance.

Compare what would happen if she had bank mortgage life insurance vs. An individual term life insurance policy as offered here.  First, she received a payment from her individual critical illness policy.  Under a bank mortgage life insurance policy she would have received no money at all – due to the limited number of conditions covered by the banks.

Secondly bank mortgage life insurance would have potentially left her without any life insurance coverage.  With bank mortgage life insurance she would lose coverage as soon as she switches mortgage companies. And since she’s uninsurable, she’d now be out of luck for any more life insurance. However, the individual term life policies offered here have a conversion option – this option would allow her to exchange her term life insurance and lock in a permanent, lifetime policy with NO medical exam – so unlike the bank mortgage life insurance which could leave her uninsurable, she instead has the opportunity to lock in her coverage for life even though she’s uninsurable.

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