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Are you prepared for life’s unexpected health challenges? Imagine the peace of mind that comes with knowing you’re financially protected against the costs of serious illnesses.
Equitable Life’s critical illness insurance plans offer this security, providing comprehensive coverage that allows you to focus on recovery rather than worrying about expenses. With options tailored to your needs, including coverage for 26 conditions, Equitable Life stands out as a robust choice in the market.
But is an Equitable Life critical illness insurance policy the right choice for you? This post will help you decide by highlighting the strengths and limitations of its plans and comparing them to similar offerings from other leading insurance companies. By the end, you will be able to make an informed decision on ensuring that a health setback doesn’t derail your financial stability.
- Key takeaways:
- The critical illness plan from Equitable Life is called EquiLiving, which covers 26 adult illnesses and five additional childhood conditions.
- EquiLiving offers affordable term-10 policies with low premiums in the first 10 years and term-75 and term-100 plans with guaranteed premiums until age 75 and 100, respectively.
- Adult plans offer substantial payouts, reaching up to $2 million, while children's plans have a maximum of $500,000.
About Equitable Life Insurance Company
Equitable Life is one of Canada’s largest federally regulated mutual insurance companies, boasting a rich history and a strong financial foundation. Founded in 1920 as The Ontario Equitable Life and Accident Insurance Company in Waterloo, Ontario, it has grown significantly over the decades.
In 1936, the company changed its name to The Equitable Life Insurance Company of Canada and began offering participating life insurance products for the first time.
By 1963, Equitable Life was one of the first insurance companies in Ontario to receive government permission to develop a plan to mutualize, reflecting its commitment to prioritizing policyholders over shareholders. This mutual status has allowed Equitable Life to focus on long-term stability and customer satisfaction.
As of the end of 2023, Equitable Life demonstrated its robust financial health with a LICAT ratio of 172%, far exceeding the minimum requirement of 90%. This high ratio indicates that the company is well-capitalized and capable of meeting its obligations to clients both now and in the future.
Throughout 2023, Equitable Life paid out $1.1 billion in claims and benefits, underscoring its reliability. Additionally, it distributed over $104 million in dividends to clients with participating whole life contracts, reaffirming its commitment to sharing its financial success with its policyholders.
Equitable Life currently offers the following insurance products to Canadians:
- Term and whole life insurance
- Universal life insurance
- Group insurance
- Segregated funds
- Payout annuities
Key facts about Equitable Life Assurance Company
AM Best Rating: Not rated
Head office:1 Westmount Road North, P.O. Box 1603 Stn Waterloo, Waterloo, Ontario N2J 4C7
Website: https://www.equitable.ca/
Contact phone number: 1-800-668-4095
What Critical Illness Insurance Plans Does Equitable Life Offer?
Critical illness insurance is a type of coverage that provides a tax-free lump sum payment if you are diagnosed with a covered illness, like cancer, heart attack, or stroke. Upon diagnosis, the insurance company pays the benefit, which can be used at your discretion. Cardiovascular diseases require a 30-day survival period before you receive the payout.
Unlike health insurance, which covers medical expenses directly, critical illness insurance gives you the financial flexibility to use the funds as you see fit. This might include covering out-of-pocket medical costs, addressing non-medical expenses like mortgage payments and everyday living costs, or even paying for home modifications to improve accessibility.
The need for critical illness insurance arises from the financial strain that accompanies serious health conditions. Illnesses like cancer, heart disease, and stroke can lead to significant medical expenses, loss of income, and the need for additional support services. Without adequate coverage, these costs can deplete savings and disrupt long-term financial plans. By providing a substantial cash benefit, critical illness insurance ensures that you can maintain financial stability and focus on recovery without the added stress of economic hardship.
Determining the amount of coverage you need depends on various factors, including your financial obligations, income, and overall healthcare costs. Generally, it’s recommended to choose a benefit amount that would cover at least one to two years of your current income. Additionally, consider your existing debts, future financial goals, and the potential cost of specialized treatments. Getting the appropriate amount of critical illness insurance ensures comprehensive protection against life’s uncertainties.
Now that you know the basics of critical illness insurance, let’s explore Equitable Life’s product in more detail.
EquiLiving
EquiLiving, Equitable Life’s critical illness insurance plan, is designed to offer comprehensive protection and peace of mind. It covers 26 major illnesses, providing a significant financial safety net for individuals facing serious health conditions.
For less severe conditions, EquiLiving offers a lesser benefit equal to 15% of your coverage amount, up to a maximum of $50,000, ensuring some level of support even for less critical diagnoses.
The plan is also available to children, with juvenile plans that cover an additional five childhood illnesses such as type 1 diabetes and cerebral palsy until your child turns 25. This makes EquiLiving a valuable option for families looking to secure comprehensive protection for all members.
Available to individuals aged 0 to 65, EquiLiving allows you to choose coverage amounts ranging from $10,000 to $2,000,000, offering flexibility to meet diverse financial needs and obligations. Furthermore, you can add EquiLiving as a rider to an existing life insurance policy, simplifying the management of multiple insurance policies and saving on policy fees.
In the event of a claim, Equitable Life enhances its support by offering six months of free monitoring of vital signs through its partner, Cloud DX. This added benefit ensures that you not only receive financial assistance but also have access to vital health monitoring, contributing to better recovery and health outcomes.
- Pros:
- EquiLiving covers 26 illnesses, including acquired brain injuries, which many other insurance companies typically exclude. This broader coverage ensures that you have financial protection against a wider range of critical health conditions.
- EquiLiving offers a unique 20-year payment option for its term-75 product, allowing you to complete your premium payments within a shorter timeframe.
- You can easily add EquiLiving as a rider to an existing life insurance policy, and conversely, you can also add life insurance as a rider to an EquiLiving policy. This flexibility allows for seamless integration and management of your insurance needs under one comprehensive plan.
- You can convert a term-10 policy into a term-75 or term-100 policy if your circumstances change and you need longer coverage. This conversion can be done without medical underwriting, ensuring that even if your health declines, you can still extend your coverage seamlessly.
- Cons:
- EquiLiving doesn't offer a term-20 option, unlike many other insurance companies that provide this term length. This may limit flexibility for those looking for intermediate-term critical illness coverage.
- For high-net-worth clients and business owners seeking higher coverage amounts, EquiLiving's maximum coverage of $2,000,000 may be insufficient, especially compared to other insurance companies that offer coverage up to $3,000,000.
Below is a table highlighting the features of the Equitable Life critical illness insurance plan:
EquiLiving | |
|---|---|
Age eligibility | 0-65 |
Number of illnesses covered | 26 |
Plan types | Term-10, Term-75, Term-75 20-pay, Term-100, Term-100 20-pay |
Guaranteed premiums | Yes |
Expiry | Age 75 or 100, depending on the plan |
Coverage limits | $10,000 to $2,000,000 |
Survival period | 30 days for cardiovascular diseases only |
Partial benefits | Pays 15% of the chosen benefit amount, up to $50,000, for less severe illnesses. Covers eight illnesses. Pays once per illness |
Conversion privileges | Term-10 can be converted to term-75, term-75 20-pay, term-100, or term-100 20-pay. Term-75 can be converted to term-75 20-pay or term-100 20-pay. Term-100 can be converted to term-100 20-pay |
Type of underwriting | Fully underwritten. A medical exam may be necessary |
Riders | Return of premium on surrender or maturity, return of premium on death, waiver of premium on death or disability |
Value-added service | Cloud DX |
How to purchase | Through a licensed insurance advisor |
What Illnesses Does Equitable Life Critical Illness Insurance Cover?
EquiLiving critical illness insurance plans cover a broad range of conditions. These 26 critical illnesses offer a full payout for the benefit amount you selected:
Living Benefit
- Acquired brain injury
- 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
With coverage for 26 critical illnesses, EquiLiving boasts one more than many competitors’ products, which often exclude acquired brain injury.
Equitable Life also offers an “Early Detection Benefit” that recognizes the importance of early diagnosis and treatment. If diagnosed with one of eight less severe conditions, you’ll receive a payout of 15% of your chosen benefit amount, capped at $50,000. These conditions, often identified early, include:
- Coronary angioplasty
- Ductal breast cancer in-situ
- Early prostate cancer
- Gastrointestinal stromal tumours (AJCC Stage 1)
- Grade 1 neuroendocrine tumours (carcinoid)
- Papillary or follicular thyroid cancer stage T1
- Rai Stage 0 chronic lymphocytic leukemia (CLL)
- Superficial malignant melanoma
The Early Detection Benefit can be a lifesaver on multiple occasions. You’re eligible to claim it once for each of the eight covered conditions. This means you could potentially receive the benefit amount several times throughout your coverage period.
Additionally, receiving the Early Detection Benefit won’t reduce the payout you’d receive for a major critical illness down the line. So, you get financial support for early diagnosis and treatment without impacting the full coverage amount for more severe illnesses.
For children, Equitable Life critical illness insurance plans go beyond standard adult coverage by adding five critical illnesses specifically affecting young lives. These include:
- Cerebral palsy
- Congenital heart disease
- Cystic fibrosis
- Muscular dystrophy
- Type 1 diabetes
How Much Does Equitable Life Critical Illness Insurance Cost?
The cost of critical illness insurance can vary significantly based on several key factors. One of the primary determinants is age; premiums tend to increase as you get older because the likelihood of developing a critical illness rises with age. Gender also plays a role, with women generally paying slightly lower premiums than men at older ages, although this can vary by insurer.
Smoking status is another major factor, with smokers facing substantially higher premiums due to the increased risk of critical illnesses like lung cancer and heart disease. Additionally, an individual’s medical history can affect costs, as those with pre-existing conditions or certain health issues may need to pay additional premiums to offset the insurer’s risk.
Lifestyle choices and activities are considered as well. Engaging in dangerous hobbies, using recreational drugs, or having a history of driving infractions can lead to higher premiums, exclusions in the policy, or even denial of coverage. Family history also influences the cost; if there is a history of major hereditary illnesses such as heart attacks or cancer, insurers may increase premiums to account for the higher risk.
The benefit amount chosen significantly impacts the cost, with higher coverage amounts resulting in higher premiums. Finally, the term length of the policy plays a crucial role; longer terms, like term-75 or term-100, are more expensive than shorter-term policies due to the extended period of coverage and increased risk over time.
The table below will give you a rough idea of EquiLiving’s cost. It shows the monthly premium for $100,000 of term-10 coverage for male and female non-smokers in the first 10 years.
Age | Male | Female |
|---|---|---|
25 | $24 | $25 |
30 | $27 | $28 |
35 | $32 | $33 |
40 | $43 | $52 |
45 | $64 | $63 |
50 | $107 | $94 |
55 | $175 | $143 |
60 | $314 | $221 |
How Do You Buy An Equitable Life Critical Illness Insurance Plan?
Purchasing critical illness insurance from Equitable Life involves several key steps to ensure you get the right coverage tailored to your needs. Here’s a step-by-step guide to help you through the process:
- Consult an insurance advisor: Your first step is to seek out a qualified insurance advisor. They will work with you to identify the right policy and any optional riders, such as a return of premium option. An advisor can provide expert guidance and help you understand the different coverage options available.
- Preliminary assessment: Before applying, it’s important to perform a preliminary underwriting assessment. If you have health issues, engage in risky activities, or have a family history of major illnesses, this assessment will help determine if you can get coverage at standard rates or if additional premiums might apply.
- Apply for critical illness insurance: Once you have decided on the right policy, you can proceed with the application. Equitable Life offers the convenience of an electronic application process, simplifying the initial steps and making it easier to submit your details.
- Underwriting process: After submitting your application, the underwriting process begins. During this stage, Equitable Life will gather and evaluate your information, which may include medical exams, health records, and lifestyle assessments, to determine your eligibility for coverage.
- Underwriting decision: Based on the underwriting process, the insurance company will make a decision. The outcomes can vary: you may be approved at standard rates, offered coverage with a rated (increased) premium, given a policy with certain exclusions, or have your application postponed or declined.
- Accept the policy: If you are approved, the final step is to accept the policy. Review the terms and conditions carefully, and once satisfied, you can start your coverage by paying the premium. This activates your policy, providing you with the critical illness protection you need.
By following these steps, you can effectively navigate the process of purchasing critical illness insurance from Equitable Life, ensuring you have the financial support necessary in the event of a serious health condition.
Need An Equitable Life Critical Illness Insurance Quote?
Choosing the right critical illness insurance plan is a crucial step in securing your financial future and protecting your health. Equitable Life’s EquiLiving offers comprehensive coverage with flexible options to meet diverse needs.
We offer a free, no-obligation consultation to determine your optimal critical illness insurance policy. Contact us at info@briansoinsurance.com or by phone at 604-928-1628. Alternatively, you can use the form below for a quick quote. We will compare the pros and cons of Equitable Life’s offering with other insurance companies to ensure you receive the optimal policy.
We also provide ongoing support to review your policy, ensuring it continues to meet your changing needs over time. Don’t wait—reach out today and secure your peace of mind with the best critical illness insurance coverage available.
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.
