Critical illness insurance
Coverage when it counts
Focus on your recovery knowing that you have money to help with your expenses if you’re diagnosed with a serious illness.
Tax-free payout
A one-time benefit payment that you can use for whatever you need.
Health experts
World-renowned specialists can help you and your family at any time for any condition.
Additional support
Get counselling and other services from professionals during your recovery.
What is critical illness insurance?
Critical illness can give you 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 include cancer, heart attack or stroke.
How does it work?
- 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 of time 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.
Expert medical help
Get access to the top 5% of specialists in their fields. They can:
- Provide a second opinion
- Help understand medical conditions
- Explain treatment options
- Help navigate the health care system
Additional support
You and your family can get professional help to deal with the impact of your illness. They can provide:
- Counselling services
- Family support services (child care, home care)
- Legal and financial consultations
- Nutritional advice
Why do you need critical illness insurance?
It’s more common than you think
A serious, life-altering illness affects one in three Canadians in their lifetime.
Cover daily costs
Use your payout to help with your expenses while you recover.
Protect your retirement savings
Don’t dip into your RRSP or other investments to pay for additional medical costs.
Focus on your recovery
Concentrate on getting healthy knowing your benefit payment can help with your finances.
How much do you need?
Depending on the severity of your illness, you may need to take time off work.
Let’s consider your income and expenses to determine how much coverage you need.
First, let’s look at your income.
- How much income might you lose if you were too sick to work?
- If your spouse had to take a leave of absence how much income would they lose?
Now, let’s look at your current expenses.
- Mortgage or rent
- Loans and other debts
- Groceries and utilities
- Credit card payments
- Other living expenses
Lastly, keep in mind you may incur additional expenses.
- Healthcare (hospital room, drug costs, etc.)
- Travel for treatments
- Childcare during treatment and recovery
- Domestic help (live-in nurse)
These are some of the expenses that can give you an idea of how much coverage you may need. This is only the first step.
An advisor can do a thorough needs analysis with you.
What happens if you don't experience a critical illness?
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.
Do you need critical illness or disability insurance?
Depending on your situation you may need only critical illness or disability insurance but there are many times when you need both to fully protect yourself.
Critical illness and disability insurance work together to help reduce the impact of disability or serious illness.
| Critical illness insurance | Disability insurance | |
|---|---|---|
Payment type? | Tax-free, one-time payout | Monthly income replacement |
| When do you receive the payment? | If you’re diagnosed with a covered condition | If you can’t work because of injury or illness |
Do you have to wait? | No waiting period in certain cases | Usually will have to wait |
How long does your coverage last? | Coverage for life | Ends at age 65 |
Ideal for? | A large sum that you can use for what you want like paying medical expenses, mortgage and pay off debt | Covering monthly expenses |
