One of the most comprehensive medical plans in the world is found in Canada, offering basic medical services to all citizens and residents. To many, a provincial health insurance plan gives the individual security, knowing that their health needs will be cared for. But despite offering health insurance, there’s always this crucial gap in its coverage that needs to be addressed. That’s where critical health insurance comes into play. If you already have some health insurance in place, you may wonder if you need critical health insurance. The answer to this question again involves an examination of the essential differences between both forms of insurance, further identification of how particularly critical health insurance contributes to your overall portfolio, and an explanation of why it will still be important, even if you feel that your main health insurance policy adequately covers you.
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Understanding Health Insurance Policies in Canada
One great advantage that Health Insurance Policies in Canada, particularly the ones that are provincial, provide is extensive coverage for a variety of health services. They typically include visits with your family doctor, care from hospitals, surgical operations, and some diagnostic testing. Although these services are comprehensive in nature, they don’t always meet every medical requirement. For example, many provincial health insurance plans have excluded prescription drugs such as dental, physiotherapy, and ophthalmology when taken outside of hospitals.
To fill these gaps, most people look to private health insurance coverage. Private health insurance is available to fill the gaps that may be found in provincial plans and offers coverage for prescription drugs, paramedical services, and other long-term care. Individual purchasing of private health insurance or through an employee benefits package can be done.
Even with this added private cover, however, one remains unanswered: what happens if you are diagnosed with some serious illness, like cancer, heart attack, or stroke? How would your finances fare if you could no longer work for months or even years while recovering?
What is Critical Health Insurance?
Critical health insurance is a form of coverage that pays you a sum of money in case you receive a diagnosed specified critical illness covered under the terms of your insurance. Common conditions typically covered include life-threatening diseases such as cancer, heart attack, stroke, kidney failure, major organ transplants, and others. As such, each critical health cover has a set list of illnesses covered, and the payout is, therefore, intended to manage the economic burden which often comes with such diagnoses.
Unlike routine health insurance, which covers direct medical costs, such as seeing a doctor or spending some time in the hospital or having surgery, critical health insurance pays “what you can use however you want.” The payment might be paid for medical care that you do not have through your health insurance plan; on the other hand, it might be something altogether non-medical, such as:
- Mortgage payments
- Everyday living expenses
- Modifications to your home if you need specialized equipment or renovations to accommodate mobility needs
- Travel for treatment or accommodation costs if treatment is required in another city
- Care for dependents while you recover
- Income replacement if you or a family member must stop working to focus on recovery
This is the principal area of difference between critical health insurance policies and traditional Health Insurance Policies. The latter takes care of all the medical bills you may incur; however, the former also takes care of the indirect expenses that could be incurred when you are suffering from some serious illness.
Why Critical Health Insurance Could Be Necessary, Even If You Have Health Insurance
One of the biggest myths is that your local health insurance or even a private health insurance plan will cover everything for you should you contract a potentially life-threatening illness. The truth is that most health insurance plans in Canada are geared toward paying the direct costs of medical care but provide little to no support against the indirect financial consequences of illness.
Income Loss Due to Illness
If you contract a serious disease, you may have to be off work for long, extended periods of time. Some employers offer short- and/or long-term disability insurance, but these coverages typically only replace a percentage of your average earnings. Depending on your condition and the extent of time that you are unable to work, your loss of income could severely jeopardize your finances.
That is where critical health insurance steps in. The single payment can pay for loss of income, so you’ll be able to pay all your monthly bills and keep your financial stability even if you’re out of work for a prolonged period of recovery.
Non-Medical Expenses
As discussed above, provincial health plans lack wide coverage of non-medical expenses, such as travel for specialized treatment, home modifications, and sometimes extended care services. Even private health insurance is likely to exclude these additional costs. For example, if one suffers from cancer and treatment is only available in another city or province, it creates a huge gap between what would be covered and the rest, which would fall under your out-of-pocket expenses.
A diagnosis of a critical illness can also mean lifestyle changes for you. You might have to modify your home to be more accessible to your condition with the installation of ramps, stairlifts, or other types of support. In most cases, if you are likely to get in-home care as you recover, these costs will add up really fast, and regular Health Insurance Policies do not cover such costs. Critical health insurance can offset such costs and give you room to be flexible in making the necessary arrangements.
Specialized Treatments and Medications
While comprehensive health insurance is available under policies in Canada, it does not cover everything. For example, specialty medications and treatment for specific diseases may not be considered within government-sponsored provincial or private plans. Out-of-pocket costs for cancer treatments, when reviewing the cost of medications, might not be covered by the government’s provincial drug programs.
In some cases, you may require other treatments not covered by a list from classical insurance plans. This flexibility gives comfort in using the best available treatment for your needs.
Examples of Covered Conditions by Critical Health Insurance
There are a few basic Health Insurance Policies in Canada that cover life-threatening conditions, though the different Critical Health Insurance Companies in Canada do have their differences; the following are common illnesses most of them usually cover:
- Cancer (life-threatening)
- Heart attack
- Stroke
- Coronary artery bypass surgery
- Kidney failure
- Major organ transplant
- Multiple sclerosis
- Parkinson’s disease
- Alzheimer’s disease
- Loss of limbs
- Severe burns
- Coma
However, while generally very good, each critical health insurance firm may differ slightly in what they provide, including additional conditions covered, so it’s important to go through the fine print of the policy. In fact, a good Canadian health insurance agent will help guide one through all the provisions of such a policy.
Who Should Consider Critical Health Insurance?
If you’re still unsure whether critical health insurance is necessary, consider your current financial situation and risk factors. Ask yourself the following questions:
- Do I have sufficient savings to cover my living expenses if I need to take extended time off work due to a severe illness?
- Will my current health insurance policy cover all of my medical and non-medical expenses if I’m diagnosed with a life-threatening illness?
- Do I have dependents or a family who rely on my income? How would they be impacted if I could not work for an extended period?
If any of the following questions leads to no, then critical health insurance may be useful alongside what you already have. This financial security will, therefore, enable you and your family to be clear about safety in case anything bad happens.
Critical Health Insurance for Self-Employed Individuals
For a freelancer or independent contractor, such critical health insurance might be even more necessary since he may not have disability insurance, whether short-term or long-term. This is an imperative safety net for the self-employed individual since such workers are not assured of benefits from their employers in case they suffer a disabling injury or illness. Being self-employed and depending on your income to pay your living expenses, a critical illness would mean the loss of your business and financial instability.
That’s why, for instance, Canadian Health Insurance Agents engage with all kinds of entrepreneurs and freelancers whose sources of income are more often unprotected, as is the case with salaried jobs, making it quite imperative for them to incorporate critical health insurance as part of their plans. The rapid payment in one go can also ensure that there’s a way to continue operating and meeting all one’s financial obligations even while still recovering.
Choosing the Right Critical Health Insurance Policy
There will be the need to choose an adequate critical health insurance policy based on some requirements. The sort of coverage you require depends on the wealth you have, your family members, and the lifestyle you will maintain even when you are being healed. You should opt for a policy that corresponds to your actual needs and risk patterns.
Critical health insurance firms in Canada offer a wide range of options; it will, therefore, be necessary to compare policies and seek the recommendations of Canadian Health Insurance Agents to ensure you settle on the right plan. Some critical factors to consider include:
- Coverage amount: How much money will you need if you’re diagnosed with a critical illness?
- Covered conditions: Does the policy cover illnesses that are relevant to your personal or family medical history?
- Waiting period: What is the waiting period before you can make a claim after diagnosis?
- Policy exclusions: Are there any conditions or circumstances that are excluded from coverage?
By thoroughly reviewing your options and working with a qualified insurance agent, you can ensure that your critical health insurance policy provides the protection you need.
Conclusion: Is Critical Health Insurance Necessary if I Already Have Health Insurance?
Critical health insurance provides that critical protection needed to fill the holes in coverage, no matter how comprehensive the overall health insurance policy is. While the provincial and private health insurance programs do mitigate direct medical costs, they fail to mitigate indirect financial costs of a deadly illness.
A critical health insurance policy can provide you with much-needed financial support when you need it the most to help you pay for your lost income, everyday expenses, or potentially much more complex treatments. Choose the right critical health insurance company in Canada by consulting with one of the many Canadian Health Insurance Agents and reviewing a wide selection of options to find a plan that provides you with the peace of mind and security you need to face whatever the future may bring.
