Coverage under critical illness (CI) insurance pays a guaranteed lump sum benefit 30-90 days after the insured individual is diagnosed with a disease or illness specified in the policy, such as a heart attack or cancer. The benefit payment is tax-free. Critical illness insurance is designed to help individuals to meet financial needs while recovering from a life-altering illness.

Critical illness insurance covers the following:
the insured is diagnosed with a specified disease, such as cancer, ALS, or Alzheimer's Disease certain events occur, such as a stroke or heart attack
the insured undergoes specified procedures such as coronary artery bypass

When critical illnesses strike, there are often significant lifestyle changes that must be made. Critical illness insurance benefits allow the insured to focus on recuperating and relieve the insured of the worry of financial security. A key benefit of the critical illness insurance policy is its flexibility. The insured may use the funds in any way he or she chooses, depending on the nature of the illness and the needs of the individual.

The cash can provide funds to:
Allow the insured to extend his or her stay-at-home recovery period. An individual who is recovering from a heart attack or cancer may prefer to take extra time to recover before returning to work.

Arrange for immediate private treatment in another country. For example, radiation treatment for breast cancer is recommended within two weeks of diagnosis. If the waiting period for treatment in Canada is three months, the insured may choose to spend the insurance benefits on private treatment in another country.

Pay for alternative therapies or medications. The insured may choose to pursue treatments or medications that are not normally covered by provincial health plans.

Compensate for lost income. The insured might be off work for a prolonged period or might not ever work again. The guaranteed cash could be used to help compensate for the lost income.

Pay for childcare.
Compensate for the lost or reduced income of a healthy spouse. The healthy spouse of the insured may take unpaid leave from his or her employment to care for the insured. For longer-term illnesses, the spouse of the insured may elect to switch to part-time hours to devote more time to his or her ailing spouse.

Fund travel or other activities. The occurrence of an insured event is a stressful experience, yet a positive attitude can be important to recovery. The tax-free cash paid by a critical illness policy could be used to pay for a long vacation.

Renovate the home or vehicle. The insured may require renovations to accommodate changes in lifestyle, such as installing some form of elevating device in a home, or hand controls in a car.

Note: Only about 15% of disability claims would also trigger a critical illness claim, and not all critical illness claims would also result in a long-term disability, so critical illness insurance and disability insurance cannot be used as a substitute for each other. Both types of risk need to be insured separately.

Critical illness insurance is structured as a 10-year term, a term-75, or a term-100 policy. This type of insurance policy pays benefits only once. Face amounts are underwritten much like disability insurance, with special attention paid to the health history of the applicant and his or her family.

Face amounts offered range from $10,000 to $2,000,000.

Critical illness is available as a free standing A&S policy or as a rider added to a life insurance or disability policy. In some cases where critical illness is covered as a rider to a life insurance policy, a percentage of the face amount of the death benefit is paid out if an insured event occurs, with the balance being paid out at death.

If you would like more information about setting up a new policy, reviewing your existing policy or increasing your insurance needs, please use our online form to submit your request and a representative will get back with you very shortly.