If you’re a resident of Ontario, you probably know that we have a pretty comprehensive healthcare system provided by the government. The Ontario Health Insurance Plan (OHIP) covers doctor visits, hospital stays, and many other medical services that many people around the world would love to have. But here’s the problem: when a critical illness strikes, OHIP is not a blank cheque that will cover everything you need during your recuperation period. And if you think it does, well, get ready because we’re about to take a deep dive into why critical illness insurance might just be the best thing you ever do for yourself and for your family.
What is critical illness insurance?
You’re a self-employed business owner or a parent managing all the struggles of family life, and then one day, you are diagnosed with a critical illness. Heart attack, cancer, stroke… This can obviously be life-changing. While OHIP will pay for your hospital stay and some treatments, it won’t cover lost income, home modifications, or alternative therapies. That’s where critical illness insurance steps in, handing you a tax-free lump sum of money to use however you see fit. It’s like having financial support arrive just when you need it most.
Why do you need critical illness insurance?
Honestly… no one plans on getting sick. But illnesses have a crazy way of sneaking up on you when you least expect it. Regardless of whether you’re running a business or running after your little ones, a sudden critical illness can put your entire financial well-being in jeopardy.
Think about it:
If you’re a self-employed business owner, you don’t have a comprehensive employer benefits package to rely on. No sick leave, no disability coverage – just you and your invoices. How do you keep paying the bills if you’re too sick to work?
If you’re a family breadwinner, missing work for months can put a serious strain on your household finances. Groceries, mortgage payments, and that ever-growing pile of kids’ extracurricular fees will still need to be paid, and the people we owe money to will not just forget about it because we are sick.
A critical illness payout gives you the breathing room to focus on your health and getting better instead of stressing about money. One thing in life is true: when faced with hardships or difficult times in our lives, those hardships are always made worse when we compound them with financial struggles.
But you thought OHIP covered everything, didn’t you? So what does OHIP doesn’t Cover?
While OHIP is great, it’s not an all-inclusive, five-star medical package. Here are some surprising expenses that may be left that will cause you to dip into your savings:
1. Out-of-country medical treatment
Have you ever heard stories of a new groundbreaking treatment that’s only available in the U.S. or Europe? OHIP doesn’t cover that. If you want access to cutting-edge therapies or specialists outside Canada, you will be responsible for paying out of pocket.
2. Experimental or alternative treatments
Maybe traditional medicine isn’t working, and you want to explore holistic treatments, advanced cancer drugs, or other alternative therapies. OHIP won’t be able to help you out. But your critical illness payout can.
3. Private nursing and home care
You want to recover in the comfort of your own home until you realize that OHIP’s home care services are limited and often have long wait times. Need a private nurse or personal support worker? That’s coming out of your pocket. Once again, it’s a good thing you have that tax-free critical illness benefit being paid to you!
4. Loss of income
This one is huge. If you’re too sick to work, your bills don’t get sick leave. Rent, groceries, hydro bills – these bills still need to get paid even if you are too sick to work and have no income coming in.
5. Therapy and Rehabilitation
Physiotherapy, counseling, and occupational therapy are all crucial to recovery but are not always fully covered by OHIP. If your doctor tells you that something can really help you heal faster, do you really want to consider whether or not you can afford it?
6. Renovations or modifications to your home or vehicle
If your illness leaves you with mobility issues, you might need ramps, stairlifts, or even an accessible vehicle. OHIP won’t pay for those either, and they can be really expensive.
So how can the critical illness benefit? Let’s take a look at some potential examples:
Example A: John, a 45-year-old self-employed software programmer, is diagnosed with cancer. His hospital stay is covered by OHIP, but unfortunately, he’ll be taking a lot of time off of work. His mortgage company, though, isn’t sympathetic to his situation and doesn’t seem to care about his diagnosis. His critical illness payout? It helps them pay the bills and keep the mortgage payments going while he’s fighting his cancer without worrying about money.
Example B: Lisa, a mother of two, suffers a stroke. She recovers but needs months of physiotherapy that OHIP only partially covers. Her critical illness payout? It lets her afford The best rehab for her situation, ensuring she’s back she can get back to the joys of her children as soon as she can
Example C: Mark is an adventurous business owner, and he decides he wants a brand new experimental treatment in Rome. OHIP, of course, won’t cover treatment out of the country. But once he gets his critical illness benefit paid to him, he can spend the money on treatment that he chooses without having to rely on government approval.
So, how expensive is critical illness insurance?
You are probably thinking, “This sounds great, but I won’t be able to afford something like this”. Critical illness insurance costs vary based on factors like age, health, and the coverage amount. However, there are many plans to fit many different budgets, so it can be extremely affordable, especially when you compare it to the potential financial disaster of going without it.
For a monthly premium, you can have peace of mind knowing that if something major happens, you won’t be financially devastated.
Ready to explore your options? Talk to a financial advisor who really understands and can help you set up a Critical Illness Insurance policy. Contact DFSIN TORONTO WEST today to learn more about your options and find the coverage that best fits your needs.
