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Have you ever stopped to wonder what impact a critical illness could have on your finances? Consider this: a serious medical condition can not only disrupt your health, but also throw your financial security off track. Medical bills, lost income, and additional caregiving needs can quickly add up.
Critical illness insurance can be a powerful tool to provide financial assistance in the face of such challenges. But with so many options from different insurance companies, which is the best for you?
This blog post will examine the details of Industrial Alliance’s critical illness plans, look at the pros and cons, compare them to competitors, and equip you with the knowledge to make informed decisions about protecting your financial future.
About iA Financial Group
Industrial Alliance, also known as iA Financial Group, is a pillar of the Canadian financial landscape since 1892. Today, iA boasts operations that extend beyond Canada and into the United States, managing over $200 billion in assets on behalf of over 5 million clients. With a workforce exceeding 9,000 employees and a network of 50,000 representatives, iA has grown into one of the country’s largest insurance and wealth management groups.
Interestingly, the company’s centennial year in 1992 marked the adoption of the elephant as its iconic symbol. This powerful creature embodies the very essence of iA Financial Group: wisdom accumulated through experience, unwavering attentiveness to clients’ needs, a strong sense of responsibility, and a commitment to family values. Just as the elephant exudes strength and stability, so too does Industrial Alliance strive to be a pillar of financial security for generations to come.
Industrial Alliance Insurance and Financial Services Inc. serves as the lifeblood of the organization, providing these insurance products:
- Term and permanent life insurance
- Disability insurance
- Travel insurance
- Home and auto insurance
- Group insurance
- Segregated funds
- Payout annuities
By offering a wide range of products and services, Industrial Alliance can address the diverse financial needs of people at different stages of life.
Key facts about iA Financial Group
AM Best Rating: A+
Head office: 1080 Grande Allee West, Quebec City, QC G1K 7M3
Website: https://ia.ca/
Contact phone number: 1-800-463-6236
What Critical Illness Insurance Plans Does Industrial Alliance Offer?
Before we get into Industrial Alliance’s products, let’s discuss critical illness insurance. It is a type of insurance designed to provide financial assistance if you are diagnosed with a covered critical illness. Here’s a breakdown of how it works, why it might be a good fit for you, and how to navigate the key considerations:
How it works:
- You choose a policy with a specific list of covered critical illnesses (e.g., cancer, heart attack, stroke).
- After a critical illness diagnosis with a covered condition and meeting the policy’s criteria (e.g., severity of illness, survival period after diagnosis), the insurance company pays you a tax-free lump sum benefit.
- The payout can be used for any purpose, such as covering treatment costs, loss of income due to treatment, or modifying your home to accommodate your needs.
Why you might need it:
A critical illness can be a significant financial burden. Even with provincial health insurance, a serious illness can lead to out-of-pocket expenses, reduced income due to missed work, or the need for additional caregiving. Critical illness insurance provides a financial cushion to help you weather these storms and focus on your recovery.
What you can use the benefit for:
- Medical bills: The lump sum can help cover any out-of-pocket medical expenses not covered by your provincial health plan.
- Loss of income: If you need to take time off work for treatment or recovery, the benefit can help replace lost income to maintain your financial stability.
- Home modifications: A serious illness may permanently affect your mobility, necessitating modifications to your home to improve accessibility.
- Caregiver expenses: You may need a caregiver to help you with daily activities, like moving, feeding, and dressing.
- Debt repayment: Meeting financial commitments while battling an illness can be overwhelming. The benefit can be used to pay off debts, like a mortgage, and ease financial stress during this challenging time.
How much coverage do you need?
The ideal amount of coverage varies depending on your financial picture. Consider your current debt, living expenses, and potential income loss during illness. Typically, critical illness insurance coverage ranges from $50,000 to $250,000 to address these potential financial burdens.
Now, let’s explore Industrial Alliance’s critical illness insurance plans and see what coverage options they offer.
Cancer Guard
If you want affordable critical illness coverage, Cancer Guard offers a compelling option. This simplified issue plan is available to ages 0-65 and allows you to choose a lump sum benefit ranging from $5,000 to $150,000 to help manage the financial impact of a cancer diagnosis.
Cancer Guard prioritizes simplicity and affordability, making it an attractive choice for those seeking core cancer coverage. However, for even broader protection, the plan offers the option to add coverage for five additional critical illnesses, including heart attack and stroke, at a minimal cost. This option also adds five juvenile diseases for children’s coverage, ensuring comprehensive coverage for your children.
Another key advantage of Cancer Guard is its ease of application. There’s no need for a medical exam, and you only need to answer two simple questions. This streamlined process allows for quick approvals, with policies sometimes issued on the same day.
Furthermore, Cancer Guard policyholders gain access to MediGuide, a valuable second opinion service. This service can provide peace of mind by connecting you with medical specialists for consultations on your diagnosis and treatment plan.
- Pros:
- No needles or lengthy appointments are required. Simply answer two straightforward health questions and you can get covered right away.
- While some cancer insurance plans might cap coverage at $50,000, Cancer Guard lets you choose up to $150,000, ensuring you have the financial flexibility you need in case of a cancer diagnosis.
- It also doesn't have a 30-day survival period like other insurance companies' products.
- Customization is also possible with riders like return of premium or accidental death and dismemberment.
- Cons:
- Premiums are subject to change over time, unlike with Transition, where the premiums are guaranteed never to increase.
- While there are term-10, term-20, and term-75 plans, Cancer Guard doesn't offer permanent coverage.
- The focus on core benefits translates to fewer covered conditions compared to comprehensive plans, which offer complete coverage for up to 25 illnesses.
Transition
Industrial Alliance’s Transition critical illness insurance plan caters to a wide range of needs with its two coverage options. For those seeking a more affordable option, Transition offers a streamlined plan that focuses on the four most common critical illnesses: cancer, heart attack, stroke, and coronary artery bypass surgery. This targeted approach makes it an attractive choice, particularly considering these four illnesses represent a significant portion (85%) of critical illness claims.
Transition also offers a comprehensive option that matches the breadth of coverage found in plans from other companies. This plan extends protection to 25 critical illnesses, providing a financial safety net in the event of a wider range of health challenges, like paralysis, severe burns, and major organ failiure. Both options are available for individuals aged 0-65 with coverage ranging from $10,000 to $3,000,000, ensuring a plan for various life stages.
You can also extend coverage to your loved ones by buying coverage for children up to age 18 with a maximum benefit of $500,000. Policies for children include five additional childhood illnesses, including muscular dystrophy and cystic fibrosis.
Transition pays a partial benefit of 15% of the chosen coverage amount, capped at $50,000, for seven less severe illnesses like early breast or prostate cancer. Similar to Cancer Guard, Transition policyholders also have access to MediGuide.
- Pros:
- Unlike many other critical illness insurance plans, Transition offers a unique term-25 option, guaranteeing your premiums and coverage for a full 25 years.
- For added convenience, Transition integrates seamlessly with iA's life insurance policies as a rider. This allows you to consolidate your critical illness and life insurance coverage under one unified policy, simplifying administration and recordkeeping.
- Transition's unique "increased benefit rider" is a powerful tool to combat inflation's impact on your financial security. By increasing your benefit amount on your policy's fifth and tenth anniversaries, this rider helps ensure your coverage keeps pace with rising costs.
- By bundling Transition coverage for your entire family under one insurance policy, you can take advantage of discounted policy fees.
- Transition offers a unique decreasing benefit option, mirroring the structure of a mortgage amortization. This lets you get critical illness coverage at a lower initial cost, with the benefit amount gradually decreasing over time.
- Cons:
- The decreasing benefit option is only available on the plan that covers four illnesses, not the one that covers 25.
- While Transition offers children's coverage for up to $500,000, other companies may be able to insure them for $1,000,000 for high-net-worth families who require more extensive coverage.
- The Transition plan encompassing 25 illnesses does not include acquired brain injury, a condition covered by many other companies, bringing their total covered conditions to 26 illnesses.
Here is a table comparing Industrial Alliance’s critical illness insurance products:
Cancer Guard | Transition | |
|---|---|---|
Age eligibility | 0-65 | 0-65 |
Number of illnesses covered | One. Can increase to six with an optional rider | 4 or 25 |
Plan types | Term-10, Term-20, Term-75 | Term-10, Term-20, Term-25, Term-75, Term-100, Term-100 10-pay, Term-100 20-pay |
Guaranteed premiums | No | Yes |
Expiry | Age 75 | Age 75 or 100, depending on the plan |
Coverage limits | $5,000 to $150,000 | $10,000 to $3,000,000 |
Survival period | 30 days for cardiovascular diseases only | 30 days for cardiovascular diseases only |
Partial benefits | Available as an optional rider. Pays 50% of the chosen benefit amount, up to $25,000 for less severe illnesses. Covers three illnesses. Only pays once | Pays 15% of the chosen benefit amount, up to $50,000, for less severe illnesses. Covers seven illnesses. Can pay up to four times |
Conversion privileges | No | Term-10, term-20, and term-25 can be converted to term-75 or term-100 |
Type of underwriting | Simplified underwriting. A medical exam is not necessary | Fully underwritten. A medical exam may be necessary |
Riders | Partial benefits, return of premium on expiry, additional illnesses covered, accidental death and dismemberment, accidental fracture, extended medical care | Return of premium on death, flexible return of premium, increased benefit rider, disability waiver of premiums, owner waiver of premiums on death and/or disability, accidental fracture, hospitalization, hospitalization and home care, supplementary income, paramedical care in the event of an accident, Transition children’s coverage |
Value-added service | MediGuide Medical Second Opinion | MediGuide Medical Second Opinion |
How to purchase | Through a licensed insurance advisor | Through a licensed insurance advisor |
What Illnesses Does Industrial Alliance Critical Illness Insurance Cover?
Let’s take a look at the specific conditions covered by Industrial Alliance’s critical illness policies.
Cancer Guard
The base policy only covers one illness:
- Life-threatening cancer
If you add an optional rider to the insurance policy, it covers these additional five conditions:
- Coma
- Coronary artery bypass surgery
- Heart attack
- Paralysis
- Stroke
Lastly, if you are buying it for your child and add the optional rider, your child will be covered for these five childhood illnesses:
- Cerebral palsy
- Congenital heart disease
- Cystic fibrosis
- Muscular dystrophy
- Type 1 diabetes mellitus
Transition
Industrial Alliance’s Transition plan offers critical illness insurance with two coverage options to meet your needs and budget:
Transition - 4 illnesses
This plan focuses on the four most common critical illnesses, prioritizing affordability while still providing valuable coverage:
- Coronary artery bypass surgery
- Life-threatening cancer
- Heart attack
- Stroke
Transition - 25 illnesses
- Aortic surgery
- Aplastic anaemia
- Bacterial meningitis
- Benign brain tumour
- Blindness
- Coma
- Coronary artery bypass surgery
- Deafness
- Dementia, including Alzheimer’s disease
- Heart attack
- Heart valve replacement or repair
- Kidney failure
- Life-threatening cancer
- 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 infection
- Paralysis
- Parkinson’s disease and specified atypical Parkinsonian disorders
- Severe burns
- Stroke
Notably missing from the list is ‘acquired brain injury’, which many other insurance companies offer to cover a total of 26 illnesses.
If you purchase coverage for your child under 18, they automatically benefit from protection against five specific childhood illnesses until they reach the age of 25. This valuable coverage is included within both Transition plans. The covered childhood illnesses include:
- Cerebral palsy
- Congenital heart disease
- Cystic fibrosis
- Muscular dystrophy
- Type 1 diabetes mellitus
In addition to the core coverage options, both Transition plans include “Prevention+,” a valuable feature that provides financial support for seven less severe critical illnesses. While these conditions may not be life-threatening, they can still cause significant disruption and require financial resources. If you are diagnosed with one of the following illnesses covered under Prevention+, Transition will pay out 15% of your chosen benefit amount, capped at $50,000:
- Breast cancer (ductal carcinoma in situ of the breast)
- Coronary angioplasty
- Gastrointestinal stromal tumours (GIST) and neuroendocrine tumours (classified less than AJCC Stage 2)
- Papillary or follicular thyroid cancer stage T1
- Rai Stage 0 chronic lymphocytic leukemia (CLL)
- Stage 1 malignant melanoma
- Stage A prostate cancer (T1a or T1b)
Prevention+ allows you to receive the 15% partial benefit up to four times. This means you can potentially receive financial support for multiple qualifying critical illnesses throughout your coverage period. Importantly, each payout does not reduce your original chosen benefit amount. This ensures you still have access to the full lump sum payout if diagnosed with a covered critical illness under the main plan options.
How Much Does Industrial Alliance Critical Illness Insurance Cost?
The cost of Industrial Alliance’s critical illness plans is personalized based on your unique profile. Here’s a breakdown of key factors that influence your premium:
Health and lifestyle
- Age and gender: Generally, younger applicants and females pay lower premiums.
- Smoking status: Smokers can expect significantly higher premiums due to the increased risk associated with tobacco use.
- Health and family history: Pre-existing conditions and a family history of certain illnesses may affect your eligibility or increase your premium.
- Lifestyle habits: Engaging in high-risk activities may influence your eligibility or lead to an exclusion or higher premium.
Coverage choices
- Benefit amount: The higher the coverage amount you choose, the more you will pay in premiums.
- Plan term: Shorter terms (e.g., term-10) are typically less expensive than longer terms (e.g., term-75) that provide coverage for a longer period.
- Optional riders: Adding riders like return of premium or increased benefit rider will raise the premiums.
Below is a table showing the current monthly premiums for a Transition (25 illnesses) term-10 policy for $100,000 in benefit amount. These rates are for healthy non-smoking men and women in the first 10 years of the policy:
Age | Male | Female |
|---|---|---|
25 | $25 | $25 |
30 | $29 | $28 |
35 | $33 | $33 |
40 | $44 | $44 |
45 | $64 | $63 |
50 | $97 | $86 |
55 | $154 | $133 |
60 | $241 | $184 |
How Do You Buy An Industrial Alliance Critical Illness Insurance Plan?
Industrial Alliance’s critical illness insurance plans are available exclusively through licensed insurance agents. These advisors play a crucial role in ensuring you get the right coverage for your needs.
Your dedicated agent will start by working with you to assess your situation. They’ll consider your financial goals, risk factors, and budget to recommend the optimal plan (Cancer Guard or Transition) and benefit amount. Optional riders can also be explored to further tailor your protection.
Once you’ve decided on the plan details, your insurance advisor will guide you seamlessly through the application process. This includes navigating the underwriting stage, where your health information is assessed to determine your eligibility and premium rate.
Cancer Guard: Due to its streamlined focus, Cancer Guard’s underwriting process is refreshingly simple. You’ll only need to answer a couple of health questions for approval. However, you can answer a few additional questions for potentially lower premiums.
Transition: The underwriting process for Transition may involve a medical exam depending on your age and desired coverage amount. This exam typically involves blood and urine samples, blood pressure readings, and height and weight measurements.
Following a thorough review of your information, the underwriter will make a coverage offer. You’ll have the opportunity to examine the policy details and premiums before accepting. Once you accept the plan and pay for the policy, your coverage goes into effect.
Need An Industrial Alliance Critical Illness Insurance Quote?
iA Financial Group offers a strong selection of critical illness plans, but navigating the insurance landscape on your own can be overwhelming. That’s where we come in.
As your independent insurance brokers, we champion your needs, not those of any particular insurer. We’ll take the time to understand your unique financial situation, risk factors, and budget. Then, we’ll leverage our expertise and market knowledge to find the critical illness insurance solution that perfectly aligns with your goals, not a one-size-fits-all approach.
Here’s what sets us apart:
- Tailored solutions: We don’t push products—we find the right fit for you.
- Independent expertise: Our focus is on your needs, not on quotas from any particular insurance company.
- Long-term commitment: We’re here for the long haul, offering ongoing policy reviews to ensure your coverage remains optimal as your life evolves.
Ready to take charge of your financial security? Don’t wait! Contact us today for a free, no-obligation consultation. We’ll answer your questions, guide you through your options, and help you find peace of mind for the future.
Here’s how to reach us:
- Email: info@briansoinsurance.com
- Phone: 604-928-1628
- Quick Quote: Fill out the form below and we’ll send you a quote directly.
Together, let’s build a secure financial future for you and your loved ones.
Get Your Critical Illness Insurance Quote Now
While we make every effort to keep our site updated, please be aware that timely information on this page, such as quote estimates, or pertinent details about companies, may only be accurate as of its last edit day. Brian So Insurance and its representatives do not give legal or tax advice. Please consult your own legal or tax adviser. This post is a brief summary for indicative purposes only. It does not include all terms, conditions, limitations, exclusions, and other provisions of the policies described, some of which may be material to the policy selection. Please refer to the actual policy documents for complete details which can be provided upon request. In case of any discrepancy, the language in the actual policy documents will prevail. A.M. Best financial strength ratings displayed are not a warranty of a company’s financial strength and ability to meet its obligations to policyholders.
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