Critical illness insurance is coverage that can help Canadians or those living in Canada pay the additional costs associated with life-altering illnesses like cancer, stroke, heart attack and dementia.
What is Critical Illness Insurance?
If you’re ever diagnosed with a life-threatening illness covered by your policy, critical illness insurance can help you focus on you and your family. It’s a one-time tax-free payment you can use however you want. Critical illness insurance can help pay the bills, potentially protect your retirement savings, and contribute to expensive drugs or alternate treatments. And if you never need to make a claim, with the optional return of premium benefit, you may be able to get back some of the money you paid for your coverage.
Critical Illness Insurance is Ideal for Canadians Who:
Critical illness insurance is for anyone between the ages 18-65. Benefits become payable after a 30-day survival period from the date of diagnosis. With proper financial planning, a critical illness plan can play an important role in meeting your retirement planning objectives.
- Are single, with no support in case you suffer a major illness
- Support family member such as siblings or parents
- Are married or have a partner with children
- Are not eligible for disability insurance
- Are self-employed or the owner of a company
Is it Good to Get Critical Illness Insurance?
Critical illness insurance can provide you with a tax-free payment if you’re diagnosed with a serious condition. Your contract will define which conditions you’re covered for, but some examples of common claims include cancer, heart attack or stroke. With advanced in medical science improving the chance of survival after the diagnosis of a serious illness, there is a heightened need for insurance benefits to help protect an individual’s lifestyle.
What Conditions Are Covered by Critical Illness Insurance?
Advances in modern medicine has increased the survival rate of patients diagnosed with a life-threatening illness. Nearly 1 in 2 Canadians will be diagnosed with cancer in their lifetime. Most common claims included cancer, heart attack and stroke.
| Acquired Brain Injury | Deafness | Major Organ Transplant |
| Alzheimer’s Disease | Dementia | Motor Neuron Disease |
| Aortic Surgery | Heart Attack | Multiple Sclerosis |
| Aplastic Anemia | Heart Valve Replacement or Repair | Occupational HIV Infection |
| Bacterial Meningitis | Kidney Failure | Paralysis |
| Benign Brain Tumour | Life-threatening Cancer | Parkinson Disease |
| Blindness | Loss of Limbs | Severe Burns |
| Coma | Loss of Speech | Stroke |
| Coronary Artery Bypass Surgery | Major Organ Failure on Waiting List for Transplant |
How Does Critical Illness Pay Out?
Choose the coverage amount you want. Pay your premium. File a claim if you’re diagnosed with a critical illness. Receive your payment. You may have to wait a set period depending on your condition. It’s more than just a payout. Coping financially with an illness is just part of the picture. Having access to emotional support and medical treatments can help your recovery.
How Can You Use the Money?
A critical illness can be emotionally and physically draining for you and your family. Our policy also has counseling and support services. For each critical illness full claim payout, a $500 donation is made to the charity of your choice.
- Payments for your mortgage, business loans or other debts
- Replace income while you take time off work to recover
- Pay for medical and wellness expenses not covered by your provincial healthcare plan
- Supplement your household income if your spouse needs to take time off work to support you, family members and childcare costs
- Seek alternative care or out-of-country treatment or private care
- Ensure the sustainability of your business and standard of living
- Alterations to your home or automobile to accommodate special needs
- Parking costs or transportation to and from treatment
Why Do You Need Critical Illness Insurance?
A life-altering illness affects one in three Canadians in their lifetime. Use your payout to help with expenses while you recover. Avoiding “dipping” into your TFSA or RRSP. You can add a return-of-premium benefit to your critical illness insurance policy. If you don’t experience a serious illness after as early as 10 years, you can choose to get your money back. If you choose this option, your policy expires.
Critical Illness Insurance Surgery Advance
This benefit pays the owner an advance on the critical illness benefits if the insured is diagnosed with a critical illness the required surgery. The payment will be the lesser of $15,000 or 10% of the critical illness benefit amount. The critical illness benefit will be reduced by the amount of this surgery advance payment.
Return-of-Premium at Death
Upon the death from at cause, the estate will receive the premiums collected since the start of the rider. If the owner of the policy is the spouse, they will receive the benefit.
Return-of-Premium 15, 20, 65 or Expiry
A full withdrawal will be equal to the sum of the premiums paid the policy. The return of premium benefit is not payable if the lump sum critical illness benefit has been paid. The return of premium benefit is significantly reduced if taken prior to the rider chosen.
