Critical illness insurance can be a vital safety net for anyone with a severe medical condition. Here, you’ll get a lump sum payment to deal with the loss of income, and expenses, and help you maintain your quality of life.
While this type of insurance can be important, it’s vital to know the cost of critical illness insurance and whether or not it fits in with your budget. That’s what we’ll look into here. We’ll also look at the factors that influence the cost, and what you can do to bring them down. Let’s get started!
Related Article: https://www.marathoninsurance.ca/blog/what-does-critical-illness-insurance-cover/

Average Cost of Critical Illness Insurance in Ontario

Giving an exact cost on your critical insurance premium is incredibly difficult without knowing your exact personal circumstances. However, to give you an idea of how much you are paying, here are some examples.
30-year-old – A basic policy with $50,000 coverage would usually cost between $20 to $40 per month.
45-year-old – The same policy could cost around $50 to $80 per month.
60-year-old – The premium could rise significantly, ranging from $100 to $200 per month.
All of those examples were of a non-smoker, which insurers will see as one of the biggest risk factors, along with age. Smokers can expect to pay up to 50% more for their policy compared to someone of the same age and health status.

Key Factors Influencing the Cost

Now you know the ballpark figures for critical illness insurance, what exactly goes into the cost of a premium? Let’s take a look at the key factors.
Age – This is going to be the main factor for obvious reasons. The older we become, the bigger the risk of developing a critical illness.
Health Conditions – Any pre-existing health conditions or history of family illnesses will result in higher premiums. Insurers will often require you to have a medical examination to assess your health status.
Lifestyle Choices – Your lifestyle choices can also make a difference, such as if you enjoy extreme sports. However, the most obvious example of a lifestyle choice affecting your premium is something we’ve already mentioned, smoking.
Coverage Amount – The coverage amount is how much will be paid out should you have a critical illness. As you may have guessed, the higher the coverage amount, the more expensive the policy will be.
Policy Term – Short-term policies are generally cheaper as there is less of a risk to the insurer. However, longer-term coverage can give you more protection, so it’s often worth extending your budget for better coverage.
Gender – Gender can influence the cost of a policy. Statistically, men are more likely to have high-risk jobs and engage in high-risk activities. Conversely, it may cost women more for specific coverage, such as protecting against breast cancer.
Policy Features and Riders – Several riders can be added to a policy such as a waiver of the premium or coverage for children. These add-ons will give you extra benefits but will all come at an extra cost.

The Importance of Comparing Policies

A crucial mistake that people make with any type of insurance policy is thinking they are all the same. No two critical illnesses insurance policies are alike, and you must choose one that best fits your circumstances.
This is especially important if there is anything you’re specifically worried about, such as a genetic link to a health condition. The last thing you want after being diagnosed is to find out that you won’t be covered under your policy.
Due to this, it’s a good idea to shop around and ask questions. It’s for this reason that using an insurance broker can be hugely helpful. They’ll consult with a range of different insurers to make sure your circumstances are taken into consideration.
Related Article: https://www.marathoninsurance.ca/blog/what-are-the-benefits-of-using-an-insurance-broker-in-toronto/

Tips for Reducing Premiums

Now we know the rough figures for these premiums and the factors that go into them, is there anything you can do to reduce these costs? Some factors, such as age, you can’t change, but there are a few ways to save money.
Maintain a Healthy Lifestyle – Being fit and healthy will have a positive impact on your premiums. And if you are a smoker, now would be the perfect time to stop. However, it’s vital to remember that you need to be honest on your application as otherwise you may invalidate the policy.
Opt for Basic Coverage – If higher payments would be an issue, look for a basic policy. While this policy may not have huge payouts or additional riders, it can still give you excellent financial protection should the worst happen.
Annual Premium Payments – If you have the budget, choose to pay annually instead of monthly. While this may come with a much higher upfront cost, the overall payment is usually much cheaper.
Workplace Benefits – Some employers will offer critical illness as part of their benefits package. Before signing up for a personal policy, it’s worth double-checking to see what your employer offers.
Shop Around – All insurers look at risk differently, and therefore all have different premiums. It pays to shop around or use an insurance broker to do the hard work for you.
Related Article: https://www.marathoninsurance.ca/blog/how-to-choose-the-right-insurance-broker/

Final Thoughts

As we’ve seen, the cost of critical illness insurance in Ontario depends on a wide range of factors. Age and health status are the most important factors, but policy features and coverage amount can also play a significant role in what you pay.
The only sure way of knowing exactly the cost of critical illness insurance is by getting a quote. Contact Marathon Insurance today and we’ll be happy to go through your circumstances. Once you’ve found the perfect policy, you can relax in the comfort of knowing your family will be financially protected.