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Critical illness insurance: Essential coverage

Critical illness insurance: Essential coverage that remains largely unknown by the average population...

TRANSITION - Financial protection in the event of a critical illness

Sudden events such as a widespread power failure, a flood, a tornado or a forest fire near a major city often make people more aware of their vulnerability to the unexpected. A critical illness can also confront us to this reality in a very dramatic and unforeseen manner.

Since illness often strikes without warning, your clients should be made aware that there are ways to safeguard another precious asset, their financial health, should they become stricken with a critical illness.

Statistics1 that offer a multitude of sales opportunities

  • Almost 50% of Canadians have no financial plan in place to safeguard their assets and lifestyle in the event of a critical illness.

  • Almost 90% of the population knows someone close to them who has been stricken with a critical illness.

  • 54% of the population, if they were to fall ill with a critical illness, would rely on their personal savings, investments or pension fund as a means of income during their recovery while 17% would mortgage their home.

Which critical illnesses occur most often?

In the insurance industry, the illnesses that most often result in the payment of benefits are as follows:


Industrial Alliance Group

Claims made to Industrial Alliance

  • Over $4 million in benefits have been paid out since the introduction of this product in 2001

  • The average benefit was $53,000

  • Of 85% of claims, 59% were for a cancer, 10% were for a heart attack and 16% were for a stroke.

  • 78% of claimants are between 40 and 60 years of age

  • 11% of claimants are under 30 years of age

View the new compact and handy version of the needs analysis

The importance of knowing which illnesses are covered

Main reasons for rejected claims2

  • 27% of critical illness claims are rejected by Canadian insurers because:

  • More than half of the claims are rejected because the illness in question is not covered under the contract or it does not correspond to the contract definition.

The situation is the same at Industrial Alliance: 13% of claims are considered unfounded because the illness or medical condition is not covered under the terms of the contract.

View the list of 23 illnesses and medical conditions currently covered by Transition

TRANSITION offers our clients:

  • Financial protection up to 100 years of age
  • Tax-free, lump-sum payment
  • Coverage of between $10,000 to $2,000,000 and contract issues from age 0 to 65
  • Partial benefit payment equivalent to 10% of the face amount
  • Guaranteed premiums, renewable every 10 years or levelled up to age 75 or for life with Transition 10, 75 or 100.
  • Flexible return of premiums
  • Return of premiums at death
  • Up to 9 insureds on the same contract, including members of a same family or business associates
  • Child Critical Illness rider - TRANSITION Child
  • WPDis rider - Waiver of premiums in the event of disability  

TRANSITION critical illness insurance: Financial protection that no client should go without!

1 Results from a survey of 971 Canadian respondents conducted last May that appeared in the Insurance Journal.
2 Statistics obtained from Munich Re.



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Critical illness insurance: Essential coverage

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