Critical Illness Insurance
Financial Strength When Health Takes a Hit.
Critical illness insurance provides a tax-free lump-sum payment if you’re diagnosed with a covered serious illness, such as cancer, heart attack, or stroke. This benefit can be used for any purpose—covering medical expenses, lost income, or lifestyle adjustments—helping you focus on recovery instead of finances.
Key Benefits:
- Lump-Sum Payment: Receive a one-time, tax-free payout upon diagnosis of a covered illness.
- Broad Coverage: Most plans cover 26 conditions, including major illnesses like cancer, heart attack, stroke, and more, depending on the provider. Additional conditions covered for children.
- Flexible Use: Funds can be used for medical costs, bills, or any financial needs during recovery.
- Customizable Coverage: Choose coverage amounts typically ranging from $10,000 up to $1 million.
- Eligibility: Available to Canadian residents; some plans offer simplified applications or coverage for those with pre-existing conditions.
Critical illness insurance acts as a financial safety net, providing vital support if you face a life-altering diagnosis. It helps protect your savings and maintain financial stability during a health crisis.
Frequently asked questions (FAQ)
Yes, life insurance pays out only if you pass away, while critical illness insurance provides a living benefit: a lump-sum payment if you survive a covered illness, helping with expenses during recovery.
Not always. Disability insurance typically provides a monthly income replacement, while critical illness insurance pays a one-time lump sum that can be used for any purpose, such as medical expenses or home modifications.
Yes, many insurers offer critical illness policies for children, which can provide financial support if your child is diagnosed with a covered condition and help with costs like travel, care, or time off work.
Some policies offer a return-of-premium feature, which means you may get back some or all your premiums if you never make a claim, depending on the policy terms.
No, the lump-sum payment you receive upon diagnosis of a covered illness is tax-free under Canadian law.
Yes, if your diagnosis meets the policy’s criteria, you receive the lump-sum benefit regardless of your ability to return to work, provided you survive the required waiting period (often 30 days).
