Critical Illness Insurance (Dreaded Disease Coverage)

Critical illness insurance is a form of health insurance that provides a lump-sum payment (the amount of insurance you applied for) should you become seriously ill with one of the covered diseases.  The three biggest disease covered is heart attack, cancer and stroke.

The last thing you want to face when you’re busy concentrating on your recovery is seeing the lifestyle that you and your family have established destroyed in the process. Critical Illness Insurance provides a tax-free lump sum payment you can use however you choose in the course of dealing with your illness.  When you or your loved one is recovering the last thing you need is any added stress from not working and meeting your financial obligations.

What are the types of illnesses covered by critical illness insurance?

Although they differ from company to company, typical illnesses and diseases covered by critical illness insurance may include:

  1. Aortic Surgery
  2. Aplastic Anemia
  3. Bacterial Meningitis
  4. Benign Brain Tumour
  5. Blindness
  6. Cancer (Life Threatening)
  7. Coma
  8. Coronary Angioplasty
  9. Coronary Artery Bypass Surgery
  10. Deafness
  11. Dementia including Alzheimer’s Disease
  12. Early Breast Cancer
  13. Early Prostate Cancer
  14. Early Skin Cancer
  15. Early Stage Blood Cancer
  16. Early Stage Intestinal Cancer
  17. Early Thyroid Cancer
  18. Heart Attack
  19. Heart Valve Replacement or Repair
  20. Kidney Failure
  21. Loss of Independent Existence
  22. Loss of Limbs
  23. Loss of Speech
  24. Major Organ Failure on Waiting List
  25. Major Organ Transplant
  26. Motor Neuron Disease
  27. Multiple Sclerosis
  28. Occupational HIV Infection
  29. Paralysis
  30. Parkinson’s Disease and Specified Atypical Parkinsonian Disorders
  31. Severe Burns
  32. Stroke

Coverage can also vary according to the degree of severity of, or conditions associated with, an illness or disease. For example, if you are diagnosed with a type of cancer that is treatable and that results in minimal “down time”, you may not be eligible to make a claim.

Coverage cannot be purchased for a pre-existing condition or illness.

Frequently Asked Questions about critical Illness Insurance

Do I need critical illness insurance?

In determining your need for critical illness insurance, you should consider benefits that may already be available to you through other insurance policies, such as life insurance and group health insurance. For example, the benefits offered through your employer’s group benefits plan may provide appropriate and adequate coverage in the event of a critical illness or you may need to just top up the difference or gap in coverage.

You should also consider your personal circumstances and the added financial strain that could be brought about by dealing with a serious illness or disease. Public and private health insurance plans typically do not provide coverage for day-to-day living expenses such as travel to and from treatments, home care, child care or other bills.

Article from the Globe and Mail is it worth it?

How much does it cost?

Generally, the younger and healthier you are, the lower the premium (cost). However, the cost varies depending on your age, medical condition, the amount of coverage, the number of illnesses covered by the policy, and the insurance company.

It pays to use an advisor to shop around to get the best fit. When shopping for a critical illness plan, you should consider your income, financial obligations, dependents, and health care needs.


How can I make a claim?

You can make a claim if a physician, licensed to practice medicine in Canada and specializing in your particular illness, diagnoses you with a critical illness or disease covered by your policy.

If my claim is approved, when will I receive payment?

Generally, a lump-sum benefit payment will be made to you 30 days after the claim has been approved.  There are no restrictions on how you use the money.

Once your claim is paid, your critical illness insurance policy ceases.

What if I never make a claim?

If you die for a reason not covered by the critical illness policy, the premiums you paid may be refunded to your named beneficiary or they go to the insurance company. Some plans will return the premium or a portion of the premiums paid during the life of the policy if the policy matures and no claim has been paid.

What if I make a full recovery?

You are entitled to collect the entire benefit even if you make a full recovery.  The insurance coverage is meant to cover you if you get one of covered diseases, it is also meant for you recover with peace of mind without dipping into your retirement fund.  You can apply for new coverage again after 5 years.

Is long-term care insurance the same as critical illness insurance?

No. Long-term care insurance provides for personal care on a long-term basis if you need supervision or assistance with daily living activities due to a chronic illness, disabling condition or cognitive impairment.

Long-term care policies are broken up into two type of polices generally reimburse or for a set monthly benefit, up to a specified limit.  The expenses incurred for various types of care, such as nursing home or home health care need to be claimed to be reimbursed.


Is disability insurance the same as critical illness insurance?

No. Disability insurance, also known as “income replacement” or “pay cheque insurance”, provides a monthly income replacement benefit if you become disabled and can no longer perform the normal duties of your work. Generally, the benefit is limited to a percentage of your regular income (the most typically being 66%) and ceases once you are back to work or you no longer meet the definition of disability in the contract.

Unlike critical illness insurance which provides the full policy benefit in a lump sum payment on diagnosis of a critical illness, long-term disability policies usually have a waiting period from the onset of disability before the payments begin. Unlike critical illness benefits, long-term disability benefits may be affected by other income you receive or by your full recovery from the illness.

Typical disability insurance is based on your annually earned income and is based on also on your ability to earn an income.  Critical Illness insurance is strictly based upon your health and is not income related.

If you wish to apply online for Critical Illness you can apply up to $75,000 just click this link.