BUT WILL YOU LIVE TO COLLECT IT?
Critical illness insurance a concern
JAMES DAW

A type of insurance sold in Canada for nearly 10 years could lead to a dramatic tug of war around a policyholder's hospital bed.

But a lawyer specializing in trust and estate matters says he, for one, has yet to hear the thorny issues raised at professional seminars or conferences.

Critical illness insurance will provide a sum of cash in the event the purchaser suffers a stroke, heartattack, cancer, coma or any one of a couple dozen medical conditions.

Coverage is more costly than life insurance, and for some people it's more difficult to obtain. But the money from the policy may be used for any purpose, including a private nurse, additional living expenses or quicker access to care outside of Canada.

No money will be payable unless the insured person is eligible and the claim is made within there required time period. In addition, the person would have to live for 30 to 180 days after the illness is diagnosed.

The so-called elimination period may vary by insurer and by the nature of illness. Most illnesses have a 30-day elimination period. A claim for cancer may not be made for 120 days after the purchase of a policy.

More often than not, purchasers of critical illness insurance will have time to discuss these matters with their family, attorney or the future executors of their estate after becoming ill.