According to the Canadian Cancer Society, nearly 1 in 2 Canadians will face cancer or any other critical illness in their lifetime. While the Canadian healthcare covers many medical expenses, a critical illness like cancer or a stroke can leave you with huge medical bills, lost income, and extra expenses. That’s where critical illness insurance can save you by paying a lump sum if you are diagnosed with a covered critical illness, so you can focus on your recovery without stressing over money. 

But with so many options available, how do you find the most affordable critical illness coverage in Canada? This article will guide you to the best and cheapest critical illness insurance companies in Canada and how to get the best plan within your budget.

Frequently Asked Questions 

Is having critical illness insurance worth it in Canada?

Yes, having critical illness insurance can be worthwhile as it can provide you with the much-needed financial support when you are dealing with a life-threatening condition. It will offer a lump-sum payment to help cover medical expenses, supplement lost income, and provide monetary support to your family.

Can I get critical illness insurance if I have a pre-existing condition?

Yes, you can get critical illness insurance even if you have a pre-existing condition. However, having a pre-existing condition may affect your policy premium and its terms. You may have to go through a waiting period and get limited coverage. So, make sure to check the policy wordings before proceeding.

How do I get cheap critical illness insurance in Canada?

To get the best critical illness insurance in Canada, you can follow a few basic steps. These include:

• Applying when young and healthy
• Shopping around and comparing critical illness insurance quotes from insurance brokers like PolicyAdvisor
• Go for basic plans with limited coverage
• Opting for a limited time (such as 10, 20 years) policy

If I already have a life insurance policy, do I still need critical illness coverage?

Life insurance and critical illness cover both serve different purposes. While life insurance pays you a death benefit if you pass away, critical illness cover pays a lump sum amount while you are alive and dealing with a serious illness, like a heart attack, cancer, stroke, to name a few. This lump sum money can help you with recovery and daily expenses while you are dealing with a critical illness.

How is critical illness insurance different from disability insurance?

Disability insurance provides a monthly income replacement if you can’t work due to injury or illness for a period of time. It gives you a monthly payment until you feel better and return to work. Critical illness insurance provides a one-time lump sum payment if you are diagnosed with a serious illness mentioned in your policy. Whether you can work or not, this policy will pay you a lump sum amount upon diagnosis.

A cancer diagnosis changes everything. With an estimated 247,100 new cancer cases expected in Canada in 2024, the reality is that cancer affects nearly every Canadian family.

Beyond the emotional and physical challenges, Canadian families face significant financial pressures that can devastate their savings and future security. [Source: Canadian Medical Association Journal]

What many don’t realize is that cancer accounts for approximately 67% of all critical illness insurance claims paid in Canada. Understanding the difference between critical illness insurance and life insurance could save your family from financial hardship when facing cancer.

This comprehensive guide examines how critical illness insurance and life insurance protect Canadian cancer patients differently, helping you make an informed decision about which cancer insurance coverage suits your needs best. 

Understanding your insurance options for cancer protection

In Canada, critical illness insurance and life insurance offer distinct protection for cancer patients. Critical illness insurance delivers a tax-free lump-sum payout upon cancer diagnosis, to help you manage immediate expenses and maintain financial stability during treatment. 

In contrast, life insurance ensures your family’s long-term financial security by providing a death benefit to cover debts, mortgages, or living costs after your passing. 

What is critical illness insurance?

Critical illness insurance provides a lump-sum payment when you’re diagnosed with a covered serious illness, including cancer. In Canada, most critical illness policies cover over 25 conditions, with cancer being the most commonly claimed condition. 

Key features:

• Immediate cash payment upon diagnosis
• No restrictions on how you spend the money
• Covers living expenses during treatment
• Available while you’re still alive to benefit

What is life insurance?

Life insurance pays a death benefit to your beneficiaries when you pass away. For cancer patients, life insurance ensures your family’s financial security after you’re gone, covering debts, mortgages, and ongoing living expenses.  

Key features:

• Death benefit paid to beneficiaries
• Protects the family’s long-term financial security
• Can include living benefits riders
• Builds cash value (permanent policies)

Critical illness insurance for cancer patients

How critical illness insurance works for cancer

Critical illness insurance becomes invaluable the moment you receive a cancer diagnosis. Most Canadian insurers pay benefits for invasive cancers after a brief waiting period (typically 30 days from diagnosis). 

Coverage details:

• Invasive cancer: Full benefit payment for cancers that have spread beyond the original site
• Carcinoma in situ: Partial payment (usually 15-25% of coverage) for early-stage cancers
• Skin cancer: Limited coverage for melanomas and certain skin cancers

Financial protection during treatment

Cancer treatment in Canada involves significant out-of-pocket expenses despite universal healthcare. Critical illness insurance for Canadian cancer patients helps cover these costs that government health plans don’t address:

• Income replacement: Average treatment period ranges 6-18 months
• Treatment costs: Experimental drugs, private clinics, alternative therapies
• Living expenses: Transportation, accommodation, childcare, household help
• Mortgage protection: Prevents foreclosure during treatment

Can you get life insurance after cancer in Canada?

Obtaining life insurance after a cancer diagnosis presents unique challenges for Canadian patients. The life insurance underwriting process becomes more complex when cancer is involved, but options exist for cancer survivors seeking financial protection.

Timing considerations:

• During treatment: Most insurers decline applications
• Post-treatment: Waiting periods of 2-10 years depending on cancer type
• Remission period: Gradual acceptance with higher premiums

Is cancer considered a pre-existing condition?

Yes, cancer is considered a pre-existing condition by insurance companies. A pre-existing condition refers to any illness, disease, or health issue that existed before you applied for health or life insurance. Cancer is specifically included in this category, meaning that if you’ve been diagnosed with cancer prior to applying, insurers will typically treat it as a pre-existing condition during their assessment.

Types of life insurance for cancer patients

Life insurance offers vital financial protection for cancer patients and their families, with options tailored to varying health and financial needs. Term life insurance provides affordable, temporary coverage ideal for protecting dependents or paying off debts like mortgages. 

Permanent life insurance offers lifelong coverage with cash value growth, suitable for estate planning despite higher premiums. Guaranteed issue life insurance ensures accessibility without medical underwriting, perfect for those with active cancer or severe health conditions, though it comes with lower coverage limits and waiting periods.

Term life insurance:

• More affordable premiums
• Temporary coverage (10-30 years)
• Ideal for mortgage protection and dependents

Permanent life insurance:

• Lifelong coverage with cash value
• Higher premiums but guaranteed acceptance
• Estate planning benefits

Guaranteed issue life insurance:

• No medical underwriting required
• Lower coverage amounts ($50,000 maximum typically)
• Higher premiums and waiting periods

Living benefits for cancer patients

Modern life insurance policies often include accelerated death benefits that allow cancer patients to access their death benefit early. These living benefits can provide crucial financial support during cancer treatment:

• Terminal illness benefits (life expectancy under 12-24 months)
• Chronic illness benefits for long-term care needs
• Critical illness riders similar to standalone policies

Cost comparison: Critical illness vs. Life insurance

When considering cancer protection in Canada, the cost of insurance varies based on age, coverage amount, and whether you’re choosing critical illness or life insurance. 

For critical illness insurance, which pays out a lump sum upon a cancer diagnosis, premiums typically start around $50 per month for a 35-year-old and can increase to $500 per month for someone aged 55, based on $100,000 in coverage.

On the other hand, life insurance premiums are generally more affordable for higher coverage amounts. For example, term life insurance for a 35-year-old costs approximately $30 to $80 per month for $250,000 in coverage, while a 45-year-old may pay between $60 and $150 per month for the same coverage. 

Permanent life insurance offers lifelong protection but can cost 5 to 10 times more than term life options.

Which insurance is right for you?

When protecting your family against the financial impact of cancer, Canadians typically choose between critical illness insurance and life insurance, or both. The right choice depends on your age, financial responsibilities, and protection goals. 

Critical illness insurance offers immediate support during treatment, while life insurance focuses on long-term family security. Some families may benefit from combining both for comprehensive cancer coverage options.

Critical illness vs Life insurance: How to choose the best insurance for cancer patients?

Choose critical illness insurance if:

• You have dependents relying on your income
• You want to cover treatment and recovery expenses
• You’re focused on maintaining lifestyle during illness
• You already have life insurance in place

Choose life insurance if:

• Your priority is your family’s long-term financial security
• You have large debts or a mortgage
• You want maximum coverage at a lower cost
• You aim to leave a financial legacy

Consider both if:

• You have high financial obligations
• You want full protection against both life and health risks
• Your budget can handle both premiums
• You’re the main income earner

 Imagine receiving a life-changing diagnosis like cancer, a heart attack, or a stroke—not only would you face emotional and physical challenges, but the financial strain could be overwhelming. 

Critical illness insurance promises a financial safety net during these difficult times, providing a lump sum payout to cover medical costs, replace lost income, or help with daily living expenses. But is it truly worth the investment? Let’s unpack the details together.

Is critical illness insurance worth it in Canada?

Yes, having critical illness insurance is worth it in Canada! It helps insured individuals during difficult times by paying them a lump sum benefit amount that is non-taxable. Canadians who have a critical illness insurance policy can utilize this payout for their treatment or other expenses and focus on complete recovery.

Frequently asked questions (FAQs)

What is the difference between critical illness insurance and health insurance?

Critical illness insurance in Canada provides a lump-sum payment if you’re diagnosed with a life-threatening illness. This payment can help pay for any purpose, like covering treatment costs, paying off debts, or adapting your lifestyle. 

Health insurance covers routine medical expenses that provincial health coverage may not offer. This may include doctor visits, prescription drugs, and hospital stays. It may also include extended benefits like dental and vision care.

Can I purchase critical illness insurance if I have a pre-existing condition?

Yes, you can purchase critical illness insurance if you have a pre-existing condition, but it may be more challenging.

Insurers often assess the risk associated with your pre-existing condition.  This could lead to higher premiums, exclusions, or denial of coverage for illnesses related to that condition. 

Can I customize my critical illness insurance policy?

Yes, you can often customize your critical illness insurance policy to fit your specific needs. Insurers typically offer various options that allow you to tailor your coverage. They are as follows:

• You can select from a range of critical illnesses to include in your policy
• You can determine the lump-sum payout amount
• You can add optional riders, like the return of premium or disability income,  for additional benefit
• You can choose the length of coverage, whether it’s a set number of years or until a certain age

What are the exclusions typically found in critical illness insurance policies?

Critical illness insurance policies often include several common exclusions. These exclusions may vary from one insurer to another, but they generally include:

1. Self-inflicted injuries: Conditions resulting from intentional self-harm are usually not covered
2. Substance abuse: Illnesses arising from alcohol or drug abuse are commonly excluded
3. Non-disclosure: Failure to fully disclose your medical history can lead to denial of claims
4. Less severe conditions: Early-stage or less severe forms of certain illnesses, like some cancers, may be excluded

The cost of critical illness insurance can vary depending on your age, lifestyle, and coverage amount. While no one plans for a life-altering illness, the financial impact of a critical condition can be as devastating as the diagnosis itself. 

In this guide, we’ll take you through the cost of critical illness insurance and share tips to help you find affordable coverage.

What is critical illness insurance?

Critical illness insurance is a type of coverage that provides a lump-sum payout if you’re diagnosed with a serious illness covered by the policy, such as cancer, heart attack, or stroke. This money can be used for medical expenses, lost income, or other financial needs during recovery. 

Unlike traditional health insurance, it offers financial flexibility to help cover non-medical costs like mortgage payments or home care. It’s designed to ease financial stress during a challenging time, ensuring better financial security.

What factors affect the cost of critical illness insurance in Canada?

The cost of critical illness insurance in Canada can vary from one individual to another, based on several factors such as age, gender, health status, coverage amount selected, and certain lifestyle choices. 

• Age: Younger individuals pay lower premiums, while rates increase significantly after an individual turns 40
• Health status & medical history: Pre-existing conditions or past illnesses lead to higher premiums or exclusions
• Coverage amount & policy term: Higher coverage and longer terms increase costs. Short-term policies are more affordable
• Lifestyle choices: Smoking, alcohol use, and risky activities raise premiums
• Family medical history: A history of critical illnesses in the family can result in higher rates
• Gender: Men and women face different risks, affecting premium costs
• Insurance provider & policy features: Prices vary by insurer, and added benefits like a return of premium increase costs

How much does critical illness insurance cost in Canada?

In Canada, the cost of critical illness insurance can vary between $15 to $385 per month, based on the age, gender, family medical history, or smoking status of an individual. Here’s what the cost may look like for men of various age groups (both smokers and non-smokers) opting for $50,000 or $100,000 in coverage:

Cost of critical illness insurance in Canada

*Illustrative costs for male individuals of various age groups opting for either $50,000 or $100,000 in coverage

How does smoking status affect the cost of critical illness insurance?

Smokers typically pay higher premiums than non-smokers due to the increased risk of developing serious conditions such as cancer, heart disease, and stroke. This amount can vary between $35 to almost $400 per month, depending on your age and other health complications.

Many insurers classify applicants as smokers if they have used tobacco or nicotine products within the last 12 months. Here’s what you can expect to pay per month to purchase a critical illness insurance plan for the top insurance providers in Canada:

Cost for critical illness insurance for smokers from top Canadian insurers

*Illustrative costs for male smokers of various age groups with $100,000 in coverage

Are there any age-specific discounts for critical illness insurance?

Although it is not typically guaranteed, age-based discounts can be provided by some insurers who offer lower premiums for younger applicants.

Also, some providers offer promotional discounts for specific age groups if you make sure to lock in lower rates by participating in an early enrollment. Group policies that are often purchased by employers or associations sometimes include age-based pricing benefits.

You can compare various plans offered by several companies to make sure which critical illness insurance plan suits your budget best.

How does my occupation affect the cost of critical illness insurance in Canada?

Certain occupations, particularly those with higher physical risks or exposure to hazardous conditions, may result in higher premiums. This is because individuals in these fields are perceived to have a higher likelihood of facing critical illnesses or injuries. Understanding how your occupation impacts your premium can help you assess your coverage options effectively.

Do pre-existing conditions increase the cost of critical illness insurance?

Yes, pre-existing conditions will typically increase the cost of your critical illness insurance plan. Most insurance companies assess an applicant’s medical history during underwriting. Individuals with pre-existing conditions are considered at higher risk as they may fall sick more frequently as compared to healthy individuals.

This is why people with pre-existing conditions may face higher premiums, exclusions for certain conditions, or even denial of coverage. Some policies may offer coverage with a waiting period, meaning pre-existing conditions won’t be covered for a particular period of time after purchasing the policy. 

What is the average critical illness insurance coverage that Canadians typically choose?

The average critical illness insurance coverage that Canadians typically choose ranges between $50,000 and $100,000. This is considered to be an ideal amount that can help cover medical expenses, loss of income, and other financial burdens during recovery. 

However, you can also opt for a higher coverage—up to $250,000 or more—depending on your financial obligations, lifestyle, and family needs. Certain factors such as age, health status, and premium amount may also influence what coverage option you’re going for. Make sure to assess your personal expenses and potential medical costs to determine the right coverage amount for your needs.

Is critical illness insurance tax deductible in Canada?

Critical illness insurance premiums are generally not tax-deductible for individuals when purchased for personal use. Since the benefit is paid out as a lump sum and is typically tax-free, the Canada Revenue Agency (CRA) does not allow individuals to deduct premiums as a medical expense.

However, if a business purchases a critical illness policy for an employee, the tax treatment can vary. In some cases, premiums paid by an employer may be considered a taxable benefit for the employee.

Who offers the best critical illness coverage in Canada?

Although the best critical illness insurance company can depend solely on the specific needs of an individual compared to the offerings of various providers, some of the most prominent names in Canada include Canada Life, Sun Life, Manulife, Desjardins, and RBC.

• Canada Life: Offers flexible term and permanent coverage with customizable benefits and lump-sum payouts for medical and recovery expenses
• Sun Life: Covers up to 26 illnesses, providing tax-free lump-sum payments and optional return-of-premium benefits for added financial security
• Manulife: Provides coverage for up to 24 illnesses, along with second medical opinions and flexible payout options for comprehensive protection
• RBC Insurance: Offers up to $2 million in coverage with critical illness and long-term care benefits to ensure financial stability during recovery
• Desjardins: Covers up to 26 conditions, with partial payouts for early-stage diagnoses and wellness support services for a holistic approach

How to reduce the cost of critical illness insurance in Canada?

Reducing the cost of critical illness insurance in Canada involves several options which include buying insurance at a younger age, choosing a higher deductible, considering policy riders, and limiting your coverage amount. These strategies can help lower your premiums without sacrificing essential coverage. 

• Buy at a younger age: Premiums tend to be lower when you’re younger and in better health. The sooner you purchase coverage, the more affordable it will likely be.
• Choose a higher deductible: Opting for a higher deductible can reduce your premiums. However, ensure you’re comfortable with the out-of-pocket expenses in the event of a claim.
• Consider policy riders: Some insurance providers offer the option to add critical illness coverage as a rider to a life insurance policy. This can be more cost-effective than purchasing a standalone critical illness policy.
• Limit coverage amount: If you don’t need extensive coverage, consider opting for a lower coverage amount. This can help you save on premiums while still providing essential protection.
• Shop around: Different insurers offer varying rates for similar coverage. Compare policies from multiple providers to find the best deal that meets your needs.
• Maintain a healthy lifestyle: Insurers may offer better rates to those with good health. Maintaining a healthy weight, not smoking, and exercising regularly can improve your eligibility for lower premiums.
• Opt for limited coverage: Some policies offer limited-term coverage (e.g., coverage for a specific number of years), which can lower premiums compared to lifetime coverage.
• Review and update your policy regularly: As your life circumstances change, such as becoming debt-free or experiencing a decrease in financial responsibilities, you can review your policy and adjust your coverage to reflect your current needs

How to find the best critical illness insurance rates in Canada?

Searching for the best critical illness quotes in Canada can indeed be daunting. Comparing several plans to choose one that suits your needs the best can be hectic, especially if you lack extensive industry knowledge. This is exactly where PolicyAdvisor comes in.

Our team of expert advisors can take you through all your options based on your budget and lifestyle choices. Moreover, through PolicyAdvisor, you can access lifetime after-sales support in case you run into any problem or have queries about your plan at a later point of time! Book a call with us today and make sure you’re fully prepared when a health crisis hits your life!

Every year in Canada, roughly 63,200 people are diagnosed with a heart attack for the first time (source: Government of Canada). With the heart attack mortality rate of about 12% (source: Healthline), that means that every year over 55,000 people live with varying degrees of heart damage, which can impact lifestyle, mobility, and the ability to work.

Critical illness insurance can play a vital role in supporting people’s heart attack recovery by providing financial protection should they undergo this life-threatening health event. Critical illness insurance is a living benefit that can be used at the insured’s discretion, whether it’s to pay for care, treatment, income replacement, or anything else they may need. Keep reading to learn more about who is eligible for heart attack insurance and how it can protect your financial future.

Can I claim critical illness insurance for a heart attack?

Yes, you can typically claim critical illness insurance for a heart attack, but it depends on the policy terms. Most critical illness policies cover heart attacks, but they may specify severity levels or medical criteria that must be met, such as evidence of heart muscle damage or elevated cardiac enzymes. 

Minor heart conditions might not qualify. It’s essential to review your policy’s definitions and exclusions to understand coverage details and ensure your claim aligns with the requirements.

What is a heart attack?

A heart attack, also called myocardial infarction, is when the heart muscle suffers damage due to a lack of blood flow and, consequently, lack of oxygen. Just as a stroke is caused by loss of blood flow to the brain, a heart attack is caused by a lack of blood flow to the heart.

The severity of heart attacks varies depending on how long the blood supply is cut off from the vital organ. In worst-case scenarios, it can lead to cardiac arrest and death.

What are the probable causes of a heart attack?

There are several factors that can cause heart attacks. The most common cause is obstructed coronary arteries due to buildup of plaque, cholesterol plaque, or blood clots. Heart attacks can also be caused by a coronary artery spasm, which temporarily restricts the coronary artery, inhibiting blood flow.

While heart attacks are often unexpected, there are certain factors that influence your risk of heart disease—some of which can be mitigated. For instance, smoking, stress, recreational drug use, obesity, high blood pressure, and high cholesterol can all increase your risk of this medical condition. Other uncontrollable factors—such as age, family medical history, and certain autoimmune conditions—can contribute to your risk of a heart attack.

What is critical illness insurance?

Critical illness insurance is a type of coverage offered by life insurance companies (typically as an add-on to a life insurance policy, but can also be purchased as a stand-alone policy) that pays out a tax-free lump sum should the insured be diagnosed with a life-threatening illness or suffer a serious health event while the policy is active.

Unlike traditional life insurance, critical illness insurance issues a benefit while the insured is alive, providing them and their family with financial support as they manage the financial and health impact of a life-threatening illness. This money can be used to pay medical expenses, cover non-traditional treatment, travel expenses or any other expenses the family sees fit.

It should be noted that the critical illness insurance benefit is only paid if the insured is diagnosed with a covered illness, as specified in the policy. The proceeds of the insurance can be used fully at the discretion of the insured.

How does critical illness insurance work?

Critical illness insurance offers financial protection by paying out a tax-free lump sum if you are diagnosed with a covered condition. To activate the policy, you must:

• Be diagnosed with a specific illness listed in your plan (e.g., cancer, heart attack)
• Submit a claim with medical documentation
• Meet the waiting period requirements (if applicable)

The payout can be used for any purpose, including medical expenses, income replacement, or lifestyle adjustments during recovery.

Does critical illness insurance cover heart attack?

Yes, critical illness policies cover heart attacks. In fact, heart attacks are the second most claimed health event through critical illness coverage (representing 13%), following cancer (63%). If you’ve suffered from a heart attack, it is important to note what insurance companies consider when approving claims.

First, a heart attack requires a medical specialist diagnosis, and the insured must have undergone symptoms as well as electrocardiogram (ECG) changes that are consistent with a heart attack.

How much does critical illness insurance cost?

Critical illness insurance can cost between $22 and $921 per month depending on factors like age, health, coverage amount, and policy term. For example, A 25-year-old male non-smoker could pay $22.49 per month for $100,000 coverage over 10 years and $56.70 per month for $250,000 coverage over 20 years.

Critical illness insurance premiums across different categories

Is critical illness insurance tax deductible?

The payout from a critical illness policy  is tax-free. However, the premiums paid by individual policyholders, are considered a personal expense and are not tax deductible. For businesses providing critical illness coverage to employees, the premiums may be deductible as a business expense.  

How to claim critical illness insurance?

To claim your critical illness insurance, you need to submit a claim form to your provider within their specified timeframe. For instance, companies like Canada Life and RBC require you to submit your claim form along with satisfactory proof of diagnosis within 30 to 90 days of the diagnosis date or surgery.

Can I be denied critical illness claim for a heart attack?

There can be certain scenarios in which your critical illness claim may be denied. For instance, a claim may be denied if a policyholder has ECG changes that point to a pre-existing heart attack, displays other acute coronary syndromes, or has undergone a medical procedure or received another diagnosis that has caused elevated cardiac biomarkers.

How long do I have to wait to file a claim after having a heart attack?

In order to make a claim for heart attack insurance, policyholders must be diagnosed with a heart attack by a physician and wait 30 days after the diagnosis. This waiting period is called a survival period. Some insurance providers do offer shorter survival periods. Typically, the critical illness benefit will be paid within a month of the claim being submitted.

Can I start a critical illness insurance policy after I’ve had a heart attack?

While it is much easier to start a critical illness insurance policy before suffering any major health events, it is still possible to find coverage after a heart attack recovery. In other words, you have options, though you may not qualify for the most competitive rates or highest benefits.

The most common route for those who have recovered from a heart attack is guaranteed critical illness insurance. This type of policy, though inclusive, has some limitations. For example, guaranteed critical illness insurance typically includes a two-year pre-existing condition exclusion.

This means that if you’ve suffered from a heart attack in the two-year period before the start of the policy, any heart attack or related health event in the next two years will not be covered.

Can I get critical illness insurance if my family has cardiovascular health concerns?

If your family has a history or signs of heart disease, it is prudent to think about investing in critical illness insurance. Though most life insurance companies take family medical histories into account when evaluating a critical illness insurance application, having an increased risk of heart disease will not necessarily exclude you from coverage. Your coverage limit and premium rates, however, may be impacted.

In cases where family history is a consideration, it is advisable to purchase critical illness insurance sooner rather than later. This will increase your chances of being able to place coverage and improve the premium rates you are offered.

To find out more about insurance for heart attacks and other critical health conditions, head to our critical illness insurance learning centre. To better understand how much critical illness insurance coverage you might need, consult our critical illness insurance calculator.

How to get the best critical illness quotes in Canada?

Finding the best critical illness insurance quotes in Canada can be a hassle, but PolicyAdvisor makes it simple and stress-free. With the help of our experienced advisors, you can compare rates from Canada’s top insurance providers, offering side-by-side comparisons of critical illness plans tailored to your needs.

Whether you’re looking for broad coverage, competitive premiums, or specific illness inclusions, PolicyAdvisor can help you curate options based on your unique requirements.

 If you have diabetes or are at risk of developing it, you might be wondering whether critical illness insurance can offer financial protection for the condition.

In this article, we’ll explore how critical illness insurance covers diabetes in Canada, what coverage options exist if you’re already diagnosed, and what alternatives to consider if you don’t qualify.

What is critical illness insurance?

​​Critical illness insurance is a type of insurance policy that pays out a tax-free lump sum should the insured be diagnosed with a life-threatening illness covered by the insurer. This type of coverage is also available as an optional add-on with life insurance policies.

Unlike traditional life insurance, critical illness insurance issues a benefit while the insured is alive, providing them and their family with financial support as they manage the financial and health impact of a life-threatening illness.

What does critical illness insurance cover?

Most critical illness insurance providers cover around 26 conditions, including blindness, limb loss, dementia, cancer, heart attack, and stroke, based on the definitions standardized by the Canadian Life and Health Insurance Association (CLHIA).

However, children’s critical illness policies, or riders, may cover up to 35 conditions, including illnesses commonly diagnosed in children such as autism, cerebral palsy, and more.

What is not covered by critical illness insurance?

Critical illness insurance in Canada typically excludes pre-existing conditions — conditions diagnosed before purchasing the policy, such as diabetes, arthritis, or osteoporosis. Most policies also have a waiting period of 90 days to one year for conditions like cancer and Parkinson’s disease. If you’re diagnosed during this waiting period, you won’t be eligible for benefits.

What is diabetes?

Diabetes is a chronic condition classified by the body’s inability to properly use or produce insulin. Insulin is a hormone normally found in your pancreas that controls glucose (sugar) levels in the blood. 

If you have diabetes, your body doesn’t respond to or produce insulin how it should. This results in high blood glucose (blood sugar) levels. High levels of blood glucose and diabetes can lead to a lot of complications such as cardiovascular disease, stroke, kidney disease, eye damage(retinopathy), glaucoma, gangrene, or even Alzheimer’s. 

Diabetes can impact anyone at any age although some types are more prevalent among certain demographics. According to the Public Health Agency of Canada, men are more likely to be diagnosed with diabetes than women, except for gestational diabetes. 

What are the various types of diabetes?

There are three main types of diabetes: type 1, type 2, and gestational.   

Type 1 Diabetes

Type 1 diabetes is an autoimmune disease that typically develops during childhood but can also occur in adults. In this condition, the immune system destroys the pancreatic cells that produce insulin. Because Type 1 diabetes is an autoimmune disease, there are no proven ways to prevent it.

Type 2 Diabetes

Type 2 diabetes is a metabolic disorder that most typically appears in adults over the age of 40, however, you can be diagnosed when you’re younger. It occurs when your pancreas doesn’t produce enough insulin to metabolize the amount of glucose in your body or your body isn’t able to properly use the insulin it produces. Contributing factors include fitness levels, weight, ethnicity, family history, and genetics. This condition can be prevented to an extent through lifestyle choices such as diet and exercise.

Gestational Diabetes

Gestational diabetes occurs during pregnancy when your body is unable to produce enough insulin, leading to an increase in blood glucose levels. While gestational diabetes usually goes away a few weeks postpartum, it does signify an increased risk for developing type 2 diabetes in the future. Gestational diabetes can be prevented to an extent through lifestyle choices such as diet and exercise.

Symptoms and Complications

Diabetes can express itself through various symptoms and can lead to a variety of complications. Diabetics can experience increased thirst, increased urination, increased hunger, weight loss, blurry vision, numb hands or feet, and tiredness among other things.

If diabetes isn’t managed properly it can lead to conditions such as high blood pressure, heart disease, kidney failure, stroke, or other complications. These symptoms and complications will all be relevant in determining the level of coverage as well as the cost of a policy that an insurance provider may offer

Treatment & Management

Diabetes is treated through the management of blood sugar and insulin levels. Less serious cases of type 2 diabetes can be managed through diet and exercise. For type 1 and more serious cases of type 2, condition management involves monitoring blood glucose levels and administering insulin in response. 

Before offering coverage, most insurance providers will require at least two tests to determine how well your diabetes has been managed:

• Glucose test or sugar reading: This reveals your current blood glucose level.
• HbA1C or A1c test: This test shows your blood glucose levels over the past two to three months by measuring the amount of glucose attached to your red blood cells.

Higher glucose levels can be an indicator of poor health and diabetes management and could result in higher insurance prices.

Does critical illness insurance cover diabetes?

No. Critical illness insurance doesn’t cover diabetes, as it’s considered a chronic condition rather than a life-threatening illness. However, complications arising from diabetes can be life-threatening and are typically covered by critical illness insurance plans. For example, diabetes-related complications like cardiovascular disease, stroke, kidney failure, limb loss, and Alzheimer’s are often covered by these policies.

If you are at risk for diabetes due to your family history, consider getting critical illness insurance to protect yourself against any potential complications. To ensure coverage of future illnesses, be sure to consult your policy and any pre-existing condition exemptions. If you are unsure, consult an advisor to understand your coverage options.

Can I get critical illness insurance if I have been diagnosed with diabetes?

Yes, you can get critical illness insurance after a diabetes diagnosis, but your options will be limited. Your diabetes will be considered a pre-existing condition that can lead to higher premiums. Potential coverage will also vary, depending on the type of diabetes you have, past complications, and how well-managed your diabetes is. If your diabetes is well managed, then the insurance company may approve you for coverage, although there will be a risk of an insurance rating i.e. a price increase. 

Alternative coverage options for individuals with diabetes

If you don’t qualify for standard critical illness insurance coverage plans, you can still qualify for non-medical critical illness insurance policies — simplified issue or guaranteed issue.

If you have a family history of diabetes, it’s better to get critical illness insurance sooner than later as a diagnosis of diabetes can severely limit your coverage options. Simplified or guaranteed coverages, while being more accommodative, may impose a pre-existing condition exclusion as well as a 2-year waiting period.

Read more about simplified issue vs guaranteed issue insurance.

To determine what kind of coverage you qualify for, be sure to chat with one of our advisors.

How do I apply for critical illness insurance with diabetes?

If you want to buy critical illness insurance with diabetes, book a free consultation with our licensed advisors, who’ll help you compare different providers, understand policy terms and exclusions, and find coverage options that match your specific needs.

With one in two Canadians expected to be diagnosed with cancer in their lifetime, as reported by the Canadian Cancer Society, it is no surprise that critical illness insurance covers cancer.

Cancer, a disease caused by the uncontrolled growth of abnormal cells, can affect nearly any part of the body. The treatment costs for cancer can be astronomical, involving surgeries, chemotherapy, radiation, and sometimes experimental treatments.  

In such cases, critical illness insurance provides a lump-sum benefit to help you focus on recovery without the added stress of finances. In this article, we’ll discuss how cancer is covered under critical illness insurance to ensure you’re always prepared for the unexpected.

What is critical illness insurance?

Critical illness insurance is a type of policy that provides a lump-sum payout if the insured person is diagnosed with a covered critical illness. It’s designed to help people financially when faced with a serious health condition.

Commonly covered illnesses include cancer, heart attack, stroke, and organ failure. This coverage can assist in managing medical costs, living expenses, or other financial burdens during a difficult time.

What cancers are not covered by critical illness insurance?

Typically, non-invasive or early-stage cancers (such as stage 0 or carcinoma in situ) and certain types of skin cancers, like basal cell carcinoma or squamous cell carcinoma, are not covered under most critical illness insurance policies in Canada. Coverage usually focuses on life-threatening and advanced-stage cancers.

However, melanoma, which is an aggressive form of skin cancer, is typically included if it meets the policy’s severity criteria (e.g., the cancer must have invaded deeper skin layers or spread). Other types of cancer that may be covered are:

• Blood cancers like leukemia may be covered if they reach a specific stage
• Thyroid cancers may only qualify if they exceed a specific tumor size or require aggressive treatment

Is breast cancer covered by critical illness insurance? 

Yes, breast cancer is covered by most critical illness insurance providers in Canada as long as the policyholder meets their terms and conditions and is not diagnosed during the initial waiting period (typically 90 days). 

Some policies, like RBC’s Critical Illness Insurance Plan, also provide you the full benefit amount if you’re diagnosed at an early stage.

Are genetic tests for cancer covered under critical illness insurance policies?

No, critical illness insurance policies typically do not cover genetic tests for cancer, as they are considered preventative or diagnostic rather than treatment-related.

Policies mostly cover the treatment of diagnosed conditions, rather than the cost of tests or screenings. However, some insurers may offer additional coverage or wellness benefits that could cover the cost of certain tests. 

Can I submit a claim on a critical illness policy upon diagnosis of cancer?

Yes, you can submit a claim on a critical illness policy upon being diagnosed with cancer, but it depends on the type and severity of the diagnosis. Most policies cover life-threatening cancers as defined in the terms of the policy. 

Early-stage or non-invasive cancers may not qualify for a claim or might require additional criteria to be met. You must always consult your insurer to understand the claims process and required documentation, such as medical reports.

Every year over 100,000 Canadians will experience a stroke, making it the leading cause of adult disability in the country (source: the Heart and Stroke Foundation of Canada). Symptoms vary, but the short and long-term effects of a stroke can be debilitating and even life-threatening. Strokes are also the third leading cause of death in Canada.

While insurance can’t protect against the medical risk of stroke, it can provide a financial safety net should you or a loved one be diagnosed with this critical illness. Critical illness insurance can help pay for treatment, care, or general support. In Canada, strokes represent the third most common diagnosis claimed through critical illness insurance. 

Keep reading to find out more about how critical illness insurance can benefit you if you or a loved one is at risk for stroke.

What is critical illness insurance?

Critical illness insurance provides a tax-free lump sum payment if you’re diagnosed with a life-threatening illness or experience a serious health event covered by your insurer. While available as a standalone policy, you can also add it to your life insurance plan as a rider (or an optional add-on), though its coverage may be limited.

Unlike regular health insurance that covers ongoing medical expenses, critical illness insurance offers a one-time payment that you can use however you need, whether that’s for replacing lost income, supporting your family, or paying off debts.

What is a stroke?

A stroke, or cerebrovascular accident, occurs when the brain loses blood flow due to a hemorrhage, embolism, or thrombosis. This loss of blood damages brain cells, leading to stroke symptoms. Early warning signs include numbness, confusion, severe headaches, and loss of balance, while long-term effects can include speech impairments, memory problems, and permanent loss of function.

There are three main types of stroke:

• Ischemic strokes: The most common type of strokes, ischemic strokes are caused when a blood vessel in the brain becomes blocked by a blood clot or plaque buildup
• Hemorrhagic stroke: Occurs when a blood vessel in the brain ruptures. This type is often linked to high blood pressure and can cause severe damage as blood pools in the brain
• Transient ischemic attack (TIA): Often called a “mini-stroke,” a TIA occurs when blood flow to the brain is temporarily blocked. While symptoms are usually mild and short-lived, a TIA often serves as a warning sign that a more severe stroke may be imminent

Does Critical illness insurance cover stroke?

Yes! Strokes fall under covered health conditions in most critical illness insurance policies. In fact, strokes are one of the main conditions covered by both basic critical illness policies (covering 3 or 4 conditions) and enhanced critical illness insurance policies (covering 25 or 26 conditions).

Coverage conditions

Most Canadian insurers use (and adhere to) the Canadian Life and Health Insurance Association’s (CLHIA) definition of stroke when assessing claims for the condition. According to the CLHIA, a stroke is an acute cerebrovascular event caused by intracranial thrombosis, or hemorrhage, or embolism from an extracranial source, with:

• Acute onset of new neurological symptoms, and
• New objective neurological deficits on clinical examination,
• Persisting for more than 30 days following the date of diagnosis. These new symptoms and deficits must be corroborated by diagnostic imaging testing. The diagnosis of stroke must be made by a specialist

Potential Exclusions

Depending on the type or severity of stroke, there may be exclusions. For example, TIAs or mini-strokes, intracerebral vascular events (strokes caused by trauma), and lacunar strokes that don’t meet the above definition may not be covered.

How long do I have to wait to file a claim after having a stroke?

Most critical illness insurance policies include a survival period clause. This means you must survive for at least 30 days after a stroke diagnosis before filing a claim. It is only after this period that the benefit will be paid. 

Most companies will require medical information about the diagnosis, including signs, symptoms, and related investigations, within six months of the date of diagnosis.

Can I get critical illness insurance after having a stroke?

Yes, you can buy critical illness insurance after having a stroke in Canada. You have two options:

• Guaranteed critical illness insurance: This coverage doesn’t require a medical evaluation but includes a two-year pre-existing condition exclusion. This means if you had a stroke within two years before applying, the policy won’t pay out if another stroke occurs during the first two years of coverage. The exclusion may also apply to other critical illnesses directly related to the stroke
• Traditional fully underwritten insurance: Depending on the severity of your stroke and how much time has passed (typically several years), you may qualify for traditional, fully underwritten insurance. Your eligibility will be assessed based on your medical history and current health status
  

Can I get critical illness insurance if I have a family history of stroke?

Yes, but your eligibility and premiums will be based on your current health condition and risk factors. If you have a family history of stroke, insurers will take that into account while deciding on your premiums and coverage levels.  You may receive an insurance rating, leading to higher premiums, or specific coverage exclusions.

Despite this, if you’re at high risk for stroke due to family history, you should absolutely get critical illness insurance. We recommend speaking with an insurance advisor to understand how your family history might affect your coverage options.

How can I purchase critical illness insurance?

You can buy critical illness insurance as an individual policy, get coverage through your employer, or opt for a special plan that’s linked to your mortgage:

• Individual policy: You can purchase this directly through an insurance agent or online. These types of policies usually require medical underwriting but also give you more control over your coverage
• Group plan: You might already have access to this through your employer or a professional association. These plans are partially or fully paid for by their providers, and their coverage usually ends when you’re no longer associated with them
• Special-purpose plan: This type of insurance covers your loan payments for a set period if you’re diagnosed with a covered condition. You can apply for it when completing your loan application or after your loan’s approval

You can hold multiple types of critical illness insurance simultaneously for broader protection. As always, we recommend booking a free consultation with our licensed advisors for personalized guidance on your coverage needs.

There are multiple ways to get critical illness insurance coverage. A critical illness rider is often a less expensive option, but whether it’s better for you than a full policy depends on your health risks, financial obligations, and personal and family needs.

This article examines the key features and differences between both options to help you decide which is right for your situation.

What is a critical illness rider?

A critical illness rider is an optional add-on for your main insurance policy. In Canada, most people add it onto their life insurance as a way to get additional coverage. But you can add it to other policies too, like mortgage insurance or disability insurance.

Riders will still cover you for major illnesses, but they won’t have all the same features a full policy can give you. A rider may also not cover you for as many health issues or for as much money as a full-scale critical illness policy will.

But, it does cost less than a full, separate policy does. And it can be convenient to buy multiple coverages at the same time like this. Critical illness is one of the most common riders Canadians get for their life insurance coverage.

How does a critical illness insurance rider work? 

With a critical illness rider, if you get a serious illness that your insurance provider has agreed to cover, they will pay you out a portion of your life insurance death benefit early.

They will give this to you as a one-time, lump sum payment that’s tax-free. But only once, and only for qualifying illness — which could be as little as 3 or 4.

Does a critical illness rider cover the same things critical illness insurance does?

It depends. Most CI riders cover fewer conditions than a full-scale policy will. It depends on the company, though. Some life insurance companies have riders that cover the same number of illnesses as a regular plan. And some of those can cover as many as 26 health conditions. But that’s rare for riders.

What is a critical illness insurance policy?

Critical illness insurance is a form of insurance that pays you a lump sum if you are diagnosed with a serious illness. The critical illness benefit money can be used for anything you need, like covering costs for:

• At-home or specialty medical care
• Prescription medication
• Other treatment costs
• Home modifications
• Debt
• Lost income
• Daily living expenses
• Other financial obligations

Most standalone CI policies will cover at least the major health conditions that are most common in Canada, like cancer, heart disease, multiple sclerosis, and more.

If you get a critical illness diagnosis and you have a standalone policy, you get a full lump-sum payment to use however you need to.

What is the difference between critical illness riders vs critical illness insurance?

A critical illness rider is like a smaller version of a critical illness insurance policy. They’ll both give you a payout if you’re diagnosed with a serious, life-altering illness. But a full policy will normally give you better coverage. An optional rider will be cheaper, but will have more coverage limits.

Think of it like a donut vs a mini donut. They’re both the same thing in a way, but on different scales. Let’s look at the different features of each below.

You should buy critical illness insurance in Canada as early as possible, ideally in your 20s or 30s, when premiums are lower, and you’re more likely to qualify for coverage without health complications.

Purchasing coverage early ensures financial protection if you’re diagnosed with a severe illness later in life, offering a lump-sum payout to cover medical costs, lost income, or other expenses. 

In this article, we’ll explore the best time to buy critical illness insurance in Canada and why acting early can greatly benefit you.

What is critical illness insurance?

Critical illness insurance is a type of policy that provides a lump-sum payout if the insured person is diagnosed with a covered critical illness. It helps people financially when facing serious health conditions.

Commonly covered illnesses include cancer, heart attack, stroke, and organ failure. This coverage can assist in managing medical costs, living expenses, or other financial burdens during a difficult time.

Is critical illness insurance worth it in Canada?

Yes, critical illness insurance is worth it in Canada because provincial healthcare only covers basic medical needs, such as hospital stays and essential treatments.

It doesn’t cover lost income, specialized treatments, or private care, leaving gaps that can cause financial strain during a serious illness. 

Critical illness insurance helps fill these gaps through a lump-sum payout. Given the high prevalence of serious illnesses like cancer, heart attacks, and strokes, critical illness insurance ensures that if you’re diagnosed with a life-threatening illness, you won’t have to bear the financial burden alone.

Here are a few situations where critical illness insurance can play a crucial role in saving your financial life:

• Your spouse needs to take time off work and does not have allowances for paid extended leaves of absence; the critical illness insurance can be used to replace all or part of their income (depending on how much coverage you purchase)
• You are self-employed and do not qualify for disability insurance, critical illness insurance can be used to replace your income
• Your medical expenses are not covered by your extended medical or universal health care. This might include adapting your home for any new physical disability you may have or physio appointments

When is the best time to buy critical illness insurance?

The best time to buy critical illness insurance is when you’re young and healthy. Early purchase ensures lower premiums, broader coverage, and fewer restrictions based on pre-existing conditions.

Life milestones, health changes, or shifts in financial responsibilities are also key moments to consider buying a policy.

Buying critical illness insurance in your 20s or early 30s has distinct advantages like lower premiums, easier chances of approval, and a solid financial foundation for your future.

Additionally, major life events like marriage, starting a family, or purchasing a home are ideal times to assess your insurance needs. 

Lastly, and importantly, if you’ve experienced a recent health diagnosis or learned of medical conditions in your family history, it’s crucial to get critical illness insurance sooner. 

What age should you get critical illness coverage?

The younger you are when you get critical illness insurance, the better it is. Younger people are generally healthier, which means your premiums will be lower. Insurance companies base premiums on factors like age, health, and lifestyle, so securing coverage while you’re younger helps lock in more affordable rates. 

By purchasing critical illness insurance early, you also ensure that you’re covered before any pre-existing conditions develop.

Pre-existing conditions such as high blood pressure, diabetes, or heart problems can make it harder to qualify for coverage or result in exclusions from your policy.  

Parents can also buy critical illness insurance for their children right after birth up to the age of 25. The premium costs for children’s critical illness insurance are substantially lower and the coverage is guaranteed.