What does critical illness insurance cover in Canada?

Understanding what conditions are covered by critical illness insurance is crucial before purchasing a policy. While it provides a tax-free lump sum payment for serious health conditions like heart attack, cancer, and stroke, not all conditions qualify for a claim.

In this post, we’ll examine what critical illness insurance covers in Canada and what constitutes a valid claim.

But first, let’s take a closer look at how it works.

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.

Commonly covered critical illnesses and conditions

In 2018, the Canadian Life and Health Insurance Association (CLHIA) updated its Critical Illness Benchmark Definitions in order to help standardize the language around common conditions and afflictions across the industry.

CLHIA listed and defined 26 common illnesses, conditions or health events in their publication, but that is not the maximum number of conditions that can or will be covered by an insurance provider. Some insurers may offer coverage for illnesses not defined by the CLHIA and some may even use their own qualifying language.

However, these definitions are commonly used and adhered to by many insurers, so you should familiarize yourself with them before choosing a provider. This is true whether you have a critical illness insurance policy or riders. There are some important distinctions in their descriptions. Whether it’s as broad as specifying coverage is only for bacterial meningitis and not viral, or as specific as the hourly length of time of a coma and its grade on the Glasgow coma scale, this language is ultimately used to determine the validity of your claim and therefore vital to understand.

The 26 conditions that most common carriers cover are:

Schedule a call for visitor insurance
Need insurance answers now?

Call 1-888-601-9980 to speak to our licensed advisors right away, or book some time with them below.

Please note that not all of these are included in every insurance policy, unless explicitly stated. If you have an existing policy or intend to buy one, please refer to the policy documents for full terms, conditions, and definitions.

What critical illness insurance is offered by Canada’s biggest insurers?

Critical illness insurance in its current form was introduced in Canada in the 1990s and is still a developing sector in the insurance industry today. Most of the major companies do offer some kind of policy though.

Some plans feature coverage for just one ailment, like cancer (and its many forms), whereas others cover the full 26 illnesses listed above, and sometimes even more. More commonly, carriers will cover the big three—cancer, heart attack, and stroke. The number of covered conditions varies somewhat from company to company. So if you’re looking to cover a specific illness, it’s worth exploring products from a variety of providers.

Putting cost aside, a quick glance at the offerings from most providers shows that critical illness products are often offered in a similar fashion no matter the company, with the biggest differentiator being the number of illnesses covered. However, there are some additional features and benefits you can look for when deciding which policy is best for you.

Partial payouts and non-life-threatening illnesses

An interesting feature included in some policies is the partial payout option or—as some companies may call it—“an early discovery benefit”. What this means is that you can receive a small amount of money if you contract a non-life threatening or less-critical illness/condition while insured.

An example of this would be if you develop treatable skin cancer. To the average person this definitely still means the big “C” cancer, however you will not qualify for full payment of the policy benefit amount as most policies do not consider it a “critical illness”. However, if you had a partial payout clause, you’d still receive some money as you did contract a form of cancer listed as eligible, and your policy would carry on through the length of your term.

These partial payout clauses typically payout between 10 to 25 percent of your policy’s value (though generally there is a maximum payout) and most importantly it doesn’t void your policy or reduce your final payout if you do end up subsequently contracting a defined life-threatening critical illness.

So, what illnesses qualify for partial payout?

These vary between provider and policy, but partial payouts often cover forms of non-life-threatening cancer and coronary angioplasty. The number of covered conditions will typically range between 4 and 16. Some companies will allow for one partial payout while others may allow for multiple partial payouts.

What are the most claims for critical illness?

In Canada, the majority of critical illness insurance claims are made for cancer, heart attack, and stroke. According to Health Risk Services Inc., approximately 67% of all critical illness claims are for cancer!
Cancer, followed by heart attack and strokes are conditions that dominate the landscape of critical illness insurance claims due to their high prevalence, severe impact on individuals’ health, and the significant financial burden they can cause.

Most claimed critical illnesses

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.

How to get critical illness insurance?

There are several ways to obtain critical illness insurance, depending on your requirements. Here are the most common options:

  • Individual policy: Can be purchased through an agent or online, and usually requires medical underwriting to determine your eligibility and premium costs
  • Group plan: Available through your employer or association you’re enrolled with. These plans are either partially or fully paid for by the entity providing them (as they’re considered the policyholders). Coverage usually ends when you leave the employer or association
  • Special purpose plan: This type of critical illness insurance covers your loan payments for a specific period, if you’re diagnosed with a critical illness. You can apply for a special purpose policy by checking a box on your loan application or submitting an insurance application after your loan’s approval

Note that you can have multiple types of critical illness insurance simultaneously. To determine the right coverage for your needs, schedule a free consultation with our licensed advisors.

Insurance can be affordable

Find the lowest quotes from the best critical illness insurance providers in Canada 

Comparison with other health insurance products

While it provides coverage for specific medical conditions, critical illness insurance shouldn’t be confused with health insurance, which reimburses certain medical expenses, or disability insurance, which replaces your income if you become disabled. Each of these products serves a distinct purpose, as explained below:

Category Critical illness insurance Health insurance Disability insurance
Definition Provides a one-time lump-sum payment if you’re diagnosed with a covered condition Covers medical expenses not covered by provincial healthcare Replaces 60 to 85 percent of your income if you become disabled
Payout type One-time tax-free benefit Reimburses covered medical expenses (upon submission of required documents) Pays monthly or weekly benefit until you return to work
Coverage duration Limited period (10 or 20 years) or lifetime (up to age 100) As long as premiums are paid Until the age of 65
What is covered?
  • Cancer 
  • Heart attack,
  • Stroke
  • Major organ failure
  • Other critical health conditions
  • Prescription drugs
  • Dental and vision care
  • Paramedical expenses
  • Medical equipment
  • Emergency travel medical insurance
Illness or injury that leads

to a loss of income

Maximum coverage limit $2-$3 million No maximum coverage limit Depends on age, occupation, income, and other limitations
Triggered by Diagnosis of a covered condition Medical treatment or hospitalization Illness or injury that keeps you from working

Definitions of critical illnesses in Canada

In 2013, the Canadian Life and Health Insurance Association published standardized definitions of critical illnesses to help create consistency around common conditions and afflictions across the insurance industry. Let’s look at 26 critical illness definitions used widely by Canadian insurance companies:

Cancers and Tumours

Benign Brain Tumour

Benign Brain Tumor is a definite diagnosis of a non-malignant tumor located in the cranial vault and limited to the brain, meninges, cranial nerves, or pituitary gland. The tumor must require surgical or radiation treatment or cause Irreversible objective neurological deficit(s).

Exclusions: No benefit will be payable under this condition for:

  • Pituitary adenomas less than 10 mm;
  • Vascular malformations;
  • Cholesteatomas; or
  • Infectious or inflammatory tumors

Cancer (life-threatening)

Cancer (life-threatening) means the definite diagnosis of a malignant tumor. This tumor must be characterized by the uncontrolled growth and spread of malignant cells and the invasion of tissue. Types of cancer include carcinoma, melanoma, leukemia, lymphoma, and sarcoma.

Exclusions: No benefit will be payable under this Covered Condition for the following:

  • Lesions described as benign, non-invasive, pre-malignant, of low and/or uncertain malignant potential, borderline, carcinoma in situ, or tumors classified as Tis or Ta
  • Malignant melanoma of skin that is less than or equal to 1.0mm in thickness, unless it is ulcerated or is accompanied by lymph node or distant metastasis
  • Any non-melanoma skin cancer, without lymph node or distant metastasis. This includes but is not limited to, cutaneous T cell lymphoma, basal cell carcinoma, squamous cell carcinoma, or Merkel cell carcinoma
  • Prostate cancer classified as T1a or T1b, without lymph node or distant metastasis
  • Papillary thyroid cancer or follicular thyroid cancer, or both, that is less than or equal to 2.0cm in greatest dimension and classified as T1, without lymph node or distant metastasis
  • Chronic lymphocytic leukemia classified as Rai stage 0 without enlargement of lymph nodes, spleen, or liver and with normal red blood cell and platelet counts;
  • Gastro-intestinal stromal tumors classified as AJCC Stage 1
  • Grade 1 neuroendocrine tumors (carcinoid) confined to the affected organ, treated with surgery alone, and requiring no additional treatment, other than perioperative medication to oppose effects from hormonal oversecretion by the tumor 
  • Thymomas (stage 1) confined to the thymus, without evidence of invasion into the capsule or spread beyond the thymus

Cardiovascular

Aortic Surgery

Aortic Surgery means the undergoing of surgery for disease of the aorta requiring excision and surgical replacement of any part of the diseased aorta with a graft. Aorta means the thoracic and abdominal aorta but not its branches. 

Exclusions: No benefit will be payable under this condition for:

  • Angioplasty
  • intra-arterial procedures
  • percutaneous trans-catheter procedures
  • non-surgical procedures

Coronary Artery Bypass Surgery

Coronary Artery Bypass Surgery means the undergoing of heart surgery to correct narrowing or blockage of one or more coronary arteries with bypass graft(s). 

Exclusions: No benefit will be payable under this Covered Condition for:

  • Angioplasty
  • Intra-arterial procedures
  • Percutaneous trans-catheter procedures
  • Non-surgical procedures

Heart Attack

Heart Attack means a definite diagnosis of the death of heart muscle due to obstruction of blood flow, that results in a rise and fall of biochemical cardiac markers to levels considered diagnostic of myocardial infarction, with at least one of the following:

  • Heart attack symptoms
  • New electrocardiogram (ECG) changes consistent with a heart attack
  • Development of new Q waves during or immediately following an intra-arterial cardiac procedure including, but not limited to, coronary angiography and coronary angioplasty

Exclusions: No benefit will be payable under this covered condition for:

  • ECG changes suggestive of a prior myocardial infarction
  • Other acute coronary syndromes, including angina pectoris and unstable angina
  • Elevated cardiac biomarkers and/or symptoms that are due to medical procedures or diagnoses other than heart attack

Heart Valve Replacement or Repair 

Heart Valve Replacement or repair means the undergoing of surgery to replace any heart valve with either a natural or mechanical valve or to repair heart valve defects or abnormalities. 

Exclusions: No benefit will be payable under this condition for:

  • Angioplasty
  • Intra-arterial procedures
  • Percutaneous trans-catheter procedures
  • Non-surgical procedures

Stroke 

Stroke (cerebrovascular accident) means a definite diagnosis of an acute cerebrovascular event caused by intra-cranial thrombosis, hemorrhage, or embolism from an extra-cranial 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

Exclusion: No benefit will be payable under this covered condition for:

  • Transient Ischaemic Attacks
  • Intracerebral vascular events due to trauma
  • Lacunar infarcts that do not meet the definition of stroke as described above

Neurological

Bacterial Meningitis

Bacterial Meningitis means a definite diagnosis of meningitis, confirmed by cerebrospinal fluid showing the presence of pathogenic bacteria.  The presence of pathogenic bacteria must be confirmed by culture or other generally medically accepted microbiological testing.  The Bacterial Meningitis must result in neurological deficits persisting for at least 90 days from the date of diagnosis.

Exclusion: No benefit will be payable under this condition for viral meningitis.

Dementia, including Alzheimer’s Disease

Dementia, including Alzheimer’s Disease, means a definite diagnosis of dementia, which must be characterized by a progressive deterioration of memory and at least one of the following areas of cognitive function:

  • Aphasia (a disorder of speech)
  • Apraxia (difficulty performing familiar tasks)
  • Agnosia (difficulty recognizing objects)
  • Disturbance in executive functioning (e.g. inability to think abstractly and to plan, initiate, sequence, monitor, and stop complex behavior), which is affecting daily life

Exclusion: No benefit will be payable under this Covered Condition for affective or schizophrenic disorders, or delirium.

Motor Neuron Disease 

Motor Neuron Disease means a definite diagnosis of one of the following: amyotrophic lateral sclerosis (ALS or Lou Gehrig’s disease), primary lateral sclerosis, progressive spinal muscular atrophy, progressive bulbar palsy, or pseudo bulbar palsy, and limited to these conditions

Multiple Sclerosis 

Multiple Sclerosis means a definite diagnosis of one of the following occurring after the later of the issue date of an insured person’s coverage, or the last reinstatement date of an insured person’s coverage:

  • Two or more separate clinical attacks, confirmed by magnetic resonance imaging (MRI) of the nervous system, showing multiple lesions of demyelination
  • A single attack, with objective neurological deficits lasting more than 6 months, confirmed by MRI of the nervous system, showing multiple lesions of demyelination
  • A single attack, confirmed by repeated MRI of the nervous system, which shows multiple lesions of demyelination that have developed at intervals at least one month apart

Exclusion: No benefit will be payable for the following:

  • Solitary sclerosis
  • Clinically isolated syndrome
  • Radiologically isolated syndrome
  • Neuromyelitis optica spectrum disorders
  • Suspected multiple sclerosis or probable multiple sclerosis

Parkinson’s Disease and Specified Atypical Parkinsonian Disorders

Parkinson’s Disease and Specified Atypical Parkinsonian Disorders means a definite diagnosis of either A) Parkinson’s Disease or B) Specified Atypical Parkinsonian Disorders, as defined below.

  • Parkinson’s Disease means a definite diagnosis of primary Parkinson’s Disease, a permanent neurological condition that must be characterized by bradykinesia (slowness of movement) and at least one of the following: muscular rigidity or rest tremor. The insured person must exhibit objective signs of progressive deterioration in function for at least one year, for which the treating neurologist has recommended dopaminergic medication or other generally medically accepted equivalent treatment for Parkinson’s Disease
  • Specified Atypical Parkinson’s Disorders means a definite diagnosis of progressive supranuclear palsy, corticobasal degeneration, or multiple system atrophy

Exclusions: No benefit will be payable for Parkinson’s Disease or Specified Atypical Parkinsonian Disorders if, within the first year following the later of the issue date or the latest reinstatement date of an insured person’s coverage, such insured person has any of the following:

  • Signs, symptoms, or investigations that lead to a diagnosis of Parkinson’s Disease, a Specified Atypical Parkinsonian Disorder, or any other type of Parkinsonism, regardless of when the diagnosis is made
  • A diagnosis of Parkinson’s Disease, a Specified Atypical Parkinsonian Disorder, or any other type of Parkinsonism

Vital Organs

Kidney Failure

Kidney Failure means a definite diagnosis of chronic irreversible failure of both kidneys to function, as a result of which regular hemodialysis, peritoneal dialysis, or renal transplantation is initiated.

Major Organ Failure on Waiting List 

Major Organ Failure on Waiting List means a definite diagnosis of Irreversible failure of the heart, both lungs, liver, both kidneys, or bone marrow, and transplantation must be medically necessary.

Major Organ Transplant 

Major Organ Transplant means a definite diagnosis of the irreversible failure of the heart, both lungs, liver, both kidneys, or bone marrow, and transplantation must be medically necessary. To qualify under Major Organ Transplant, the insured person must undergo a transplantation procedure as the recipient of a heart, lung, liver, kidney, or bone marrow, and limited to these entities.

Accident and Functional Loss

Acquired Brain Injury

Acquired brain injury means a definite diagnosis of new damage to brain tissue caused by traumatic injury, anoxia, or encephalitis, resulting in signs and symptoms of neurological impairment that:

  • Are present and verifiable on clinical examination or neuropsychological testing,
  • Are corroborated by imaging studies of the brain such as Magnetic Resonance Imaging (MRI) or Computerized Tomography (CT) showing changes that are consistent in character, location, and timing with the new damage, and
  • Persist for more than 180 days following the date of diagnosis

Exclusion: No benefit will be payable under this condition for:

  • An abnormality seen on brain or other scans without definite related clinical impairment
  • Neurological signs occurring without symptoms of abnormality.

Blindness

Blindness means a definite diagnosis of the total and irreversible loss of vision in both eyes, evidenced by:

  • The corrected visual acuity being 20/200 or less in both eyes
  • The field of vision being less than 20 degrees in both eyes

Coma

Coma means a definite diagnosis of a state of unconsciousness with no reaction to external stimuli or response to internal needs for a continuous period of at least 96 hours, and for which period the Glasgow coma score must be 4 or less. 

Exclusion: No benefit will be payable under this covered condition for:

  • A medically induced coma
  • A coma which results directly from alcohol or drug use
  • A diagnosis of brain death

Deafness 

Deafness means a definite diagnosis of the total and irreversible loss of hearing in both ears, with an auditory threshold of 90 decibels or greater within the speech threshold of 500 to 3,000 hertz.

Loss of Independent Existence 

Loss of Independent Existence means a definite Diagnosis of the total inability, due to disease or injury, to perform independently, with or without the aid of assistive devices, at least 2 of 6 Activities of Daily Living listed below for a continuous period of at least 90 days with no reasonable chance of recovery. 

Activities of Daily Living are as follows:

  • Bathing: washing oneself in a bathtub, shower, or by sponge bath
  • Dressing: putting on and removing necessary clothing, braces, artificial limbs, or other surgical appliances
  • Toileting: getting on and off the toilet and maintaining personal hygiene
  • Bladder and bowel continence: managing one’s bladder and bowel function with or without protective undergarments or surgical appliances so that hygiene is maintained
  • Transferring: moving in and out of a bed, chair, or wheelchair
  • Feeding: consuming food or drink that already has been prepared and made available

Loss of Limbs

Loss of Limbs means a definite diagnosis of the complete severance of two or more limbs at or above the wrist or ankle joint as the result of an accident or medically required amputation.

Loss of Speech

Loss of Speech means a definite diagnosis of the total and Irreversible loss of the ability to speak as a result of physical injury or disease, for a period of at least 180 days.

Exclusion: No benefit will be payable under this Covered Condition for all psychiatric-related causes.

Paralysis 

Paralysis means a definite diagnosis of the total loss of muscle function of two or more limbs as a result of injury or disease to the nerve supply of those limbs, for a period of at least 90 days following the precipitating event.

Severe Burns 

Severe Burns means a definite diagnosis of third-degree burns over at least 20% of the body surface. 

Other

Aplastic Anemia 

Aplastic Anemia means a definite diagnosis of a chronic persistent bone marrow failure, confirmed by biopsy, which results in anemia, neutropenia, and thrombocytopenia requiring blood product transfusion, and treatment with at least one of the following:

  • Marrow stimulating agents
  • Immunosuppressive agents
  • Bone marrow transplantation

Occupational HIV Infection 

Occupational HIV Infection means a definite diagnosis of infection with Human Immunodeficiency Virus (HIV) resulting from accidental injury during the course of the insured person’s normal occupation, which exposed the person to HIV-contaminated body fluids.

The accidental injury leading to the infection must have occurred after the later of the issue date or the latest reinstatement date of such insured person’s coverage.

Exclusion: No benefit will be payable under this covered condition if:

  • The Insured Person has elected not to take any available licensed vaccine offering protection against HIV
  • A licensed cure for HIV infection has become available prior to the accidental injury
  • HIV infection has occurred as a result of non-accidental injury including, but not limited to, sexual transmission and intravenous (IV) drug use

Get a critical illness insurance quote

Ready to buy critical illness insurance? Book a free consultation with our licensed advisors, who’ll help you compare different providers, understand their offerings, and clarify any doubts about a policy’s financial and medical requirements. Call now to get tailor-made plans for your specific needs!

Need insurance help?

Give us a call at 1-888-601-9980 or book some time with our licensed experts.

Frequently asked questions

How quickly can I receive a payout after being diagnosed with a critical illness?

The speed at which you would receive your critical illness payout depends on your provider and policy terms. However, most providers, like RBC Insurance, will pay your benefit within 60 days of receiving completed claim forms and all the documents requested from your medical specialist.

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

Yes, you can purchase critical illness insurance in Canada if you have a pre-existing condition. However, you must disclose your condition details, ongoing treatments, and recent diagnoses during your application. Depending on the severity of your condition, the insurer may respond in one of these ways:

  • Decline: The insurer may automatically decline your application, particularly for serious conditions like advanced cancer, cystic fibrosis, and multiple sclerosis
  • Rated Policy: If your condition presents a higher risk, you may be offered a “rated” policy with higher premiums
  • Standard Approval: If your condition isn’t considered high-risk, your application may be approved with standard terms

Is critical illness insurance worth it for individuals with a family history of covered illnesses?

Yes, individuals with a family history of critical illnesses, such as cancer, heart attack, and stroke, should strongly consider critical illness insurance, as they have a higher susceptibility to these conditions.

How does critical illness insurance coverage change as I age?

As you age, critical illness insurance coverage becomes more expensive, since premiums tend to increase with age. Coverage availability also becomes limited, particularly for individuals over the age of 60.

Additionally, you may become more susceptible to pre-existing conditions such as arthritis, osteoporosis, and diabetes, or may already have them, which can make obtaining coverage more difficult.

Can I renew my critical illness insurance policy, and are there any changes on renewal?

Yes, you can renew your critical illness insurance policy at the end of its term. Some companies, like Sun Life, automatically renew 10-year term policies at guaranteed renewal premiums. You may also have the option to increase your coverage; however, this might require additional medical underwriting.

What is the difference between critical illness insurance and terminal illness benefit in life insurance?

Critical illness insurance covers serious health conditions like cancer, heart attack, and stroke, and provides a tax-free lump sum payment upon diagnosis. A terminal illness benefit, typically included in permanent life insurance plans, pays 50-75% of the insurance amount if you’re diagnosed with a terminal illness and have two years or less to live.

 Are children covered under my critical illness insurance plan?

No, you can’t add children to your own critical illness insurance. However, you can buy a separate children’s critical illness policy that covers over 30+ health conditions and provides a lump sum payment if your child is diagnosed with a covered condition. Children’s critical illness insurance can be purchased anytime from birth until age 25.

What happens if I move out of Canada? Does my critical illness insurance still cover me?

Yes, your critical illness insurance remains in effect if you relocate from Canada, as long as you continue paying your premiums. However, there may be additional requirements when filing a claim. For instance, your insurer might need to verify that your diagnosis and treatment meet Canadian standards.

Is COPD covered by critical illness insurance? 

No, critical illness insurance is specifically designed for severe health conditions, such as cancer, heart attack, and stroke, and usually doesn’t cover COPD, or chronic respiratory illnesses. 

/* Custom Archives Functions Go Below this line */ /* Custom Archives Functions Go Above this line */

What is critical illness insurance & How does it work in Canada? – Updated 2025

Each year, thousands of Canadians are diagnosed with serious health conditions like cancer, heart attack, and stroke—life-altering events that bring unexpected financial challenges, from higher expenses to lost income to lifestyle adjustments.

Critical illness insurance provides financial protection during these difficult times through a lump sum payment upon diagnosis of a covered condition. In this post, we’ll explore how critical illness insurance works and help you decide if it’s a worthwhile investment for your future.

What is critical illness insurance?

Critical illness insurance is an agreement you make with a life insurance company that they will pay you a tax-free lump-sum of money if you…

  • develop a life-threatening illness
  • have a serious health event
  • or undergo treatment while under their coverage

Unlike life insurance, the payout doesn’t happen after you die. It’s a living benefit you receive while you are alive to help with immediate financial burdens of a critical illness. You get the payout once proof of a specified illness or incident is established (barring any policy waiting period).

Schedule a call for visitor insurance
Need insurance answers now?

Call 1-888-601-9980 to speak to our licensed advisors right away, or book some time with them below.

How does critical illness insurance work?

Critical illness insurance (also known as CI insurance) works by offering financial support should you or your family member be diagnosed with a serious illness such as cancer, heart attack, or stroke.

Just like with life insurance, you’ll be required to pay monthly premiums over the course of your term length to maintain that protection. Both the amount of the benefit and the monthly payments are decided when you apply for the policy.

During your policy term, if you are diagnosed with a critical illness, you submit a claim that includes your official diagnosis documentation. Then the insurance company pays you the benefit.

How does critical illness insurance work?

*Subject to waiting period

Is critical illness insurance taxable?

No, the lump sum payment received from a critical illness insurance policy is generally tax-free in Canada. This tax-free benefit helps policyholders use the payout for necessary expenses without worrying about deductions. However, exceptions apply if the policy is owned by a business and premiums were deducted as a business expense.

Common uses for critical illness insurance

The payout (or benefit) from a critical illness insurance policy can help replace lost income, support personal and family needs, and pay a mortgage and other loan payments.

Let’s look at the different ways to use a critical illness insurance benefit:

Income

Replacing income

For you or your family to take time off work.

Debt

Debts

Mortgages, business loans and other liabilities.

At home care

At-home care

Hiring nurses or other home-care practitioners.

Medicine

Prescription medicine

Out-of-pocket expenses not covered by provincial plans

Enhanced care

Enhanced care

Upgraded medical facilities and services

Medical device

Modifications

Renovations or modifications to your home, car, or other household expenses

Treatment

Additional treatment

Out-of-country or alternative medical expenses

Protection

Savings protection

Eliminate the need to use retirement savings

What illnesses are covered by critical illness insurance?

Critical illness insurance in Canada covers over 30 life-threatening conditions, including cancer, heart attack, kidney failure, and stroke. These conditions are selected because they often involve high medical costs and lifestyle changes that impact your ability to work.

Here’s a list of conditions usually covered by critical illness insurance:

Basic critical illness coverage

  • Cancer
  • Heart attack
  • Stroke

Enhanced critical illness policy coverage

  • Acquired Brain Injury
  • Aortic Surgery
  • Aplastic Anemia
  • Blindness
  • Bacterial Meningitis
  • Cancer
  • Coma
  • Coronary Artery Bypass Surgery
  • Dementia, including Alzheimer’s Disease
  • Deafness
  • Heart Attack
  • Heart Valve Replacement or Repair
  • Kidney Failure
  • Loss of Independent Existence
  • Loss of Limbs
  • Loss of Speech
  • Major Organ Failure on Waiting List
  • Major Organ Transplant
  • Motor Neuron Disease
  • Multiple Sclerosis
  • Occupational HIV Infection
  • Paralysis
  • Parkinson’s Disease
  • Severe Burns
  • Stroke (Cerebrovascular accident)
Critical illness insurance coverage list

What is partial payout in critical illness insurance policies?

A partial payout allows you to receive a portion of your critical illness insurance benefit if you’re diagnosed with an early-stage or less severe covered condition.

Partial payment details:

  • The specified illnesses will be made clear to you before your coverage begins
  • Often non-life-threatening cancers fall into this category
  • This clause allows you to receive some money (typically between 10-25 percent of your coverage amount and is subject to dollar value limits) during your recovery
  • You can maintain your protection should you contract a terminal condition down the road

The conditions eligible for partial payment vary from company to company.

Some conditions eligible for partial payout are:

  • Early thyroid cancer
  • Early prostate cancer
  • Stomach tumours
  • Superficial skin cancers
  • Ductal breast cancers
  • Coronary angioplasty

Can I receive multiple critical illness insurance payouts if I am diagnosed with multiple conditions?

Yes. It is possible to receive multiple payouts on a critical illness insurance policy for partially critical conditions. However, coverage only pays out once in its entirety for fully critical conditions. The amount of times you can claim partial conditions depends on your policy wording.

How much does critical illness insurance cost?

In general, you can expect to pay anywhere from $21-70 per month for critical illness insurance. On average, it’s more expensive than term life insurance but not so expensive that you can’t afford it. Just like life insurance, the younger and healthier you are, the less expensive your critical illness insurance premium is.

Coverage amounts are smaller than what you’d see for a life insurance death benefit, so that also helps keep premiums low. Canadians typically elect for an average critical illness coverage of $77,000 according to the Canadian Society of Actuaries.

Other factors that can affect the cost of premiums include:

  • your term length
  • the number of conditions covered by your policy
  • any riders or clauses you opt for
  • smoking status

Critical illness insurance riders

Some companies allow you to add riders to a critical illness insurance policy that can add coverage or return your premiums. With some policies, you may be able to choose the number of illnesses covered as well as the amount of coverage and the term length of the rider. Critical illness riders typically have a 30 day survival period that needs to be completed, before the policy can pay out the proposed benefit of the rider.

Child critical illness rider

A Child Critical Illness rider provides coverage for the insured’s children if they are diagnosed with a childhood illness. The exact list and number of illnesses covered vary across insurers.

Return of Premium on Death rider or Expiry rider

A Return of Premium on Death or Expiry rider returns all or a part of the premiums one has paid over the course of their policy when the policy term ends or when the individual passes away.

Is critical illness insurance worth it?

Yes, critical illness insurance is worth the money. Critical illness insurance is protection you buy to protect you and your family from the financial fallout that happens if you get critically sick. If you want the financial freedom to recover from a serious illness on your own terms, then you need this type of insurance.

Because critical illness insurance pays a living benefit, getting coverage is even more of a personal decision than life insurance. Life insurance is really about your family’s needs. Critical illness insurance is about your financial needs while you recover.

Look at the stats: 

  • 1/2 of Canadians will be diagnosed with cancer in their lifetime
  • The average out-of-pocket expenses for cancer in Canada is around $400 a month. This excludes treatment covered by public or private health care and can be more depending on the type of cancer
  • When you’re diagnosed with cancer, you’ll likely have to take time off work to recover

So, can you afford to take time off work, cover your usual bills, plus at least $400 a month to pay for your treatment/recovery? If you can’t, critical insurance is worth it.

Buying this insurance can give you the peace of mind to know, that if you’re facing a critical diagnosis, you’ll be able to focus completely on recovery.

Learn more about whether critical illness insurance is worth it.

Advantages Disadvantages
Financial protection for your family More expensive than life insurance
Flexibility in how benefit is used Some companies only offer basic policies
Premiums can be returned if there are no claims
Ability to get coverage as a rider or separate policy

Cancer and heart disease are common critical illnesses in Canada.

Can I get life insurance and critical illness insurance together?

Yes, many Canadian insurance companies offer life insurance and critical illness coverage together. You can add critical illness coverage as a rider to your life insurance policy. This can help you apply for both life insurance and critical illness coverage at the same time without having to go through underwriting again.

Learn more about critical illness insurance versus critical illness riders.

How much critical illness insurance coverage do I need?

In general, Canadians commonly purchased between $50,000 and $100,000 in coverage or more.

Because the coverage pays a living benefit, it’s intended to cover a shorter period of time, specifically while you are treating and recovering from an illness. Hopefully, your recovery will be swift, and you wouldn’t be reliant on the money paid out by your policy for the remainder of your life.

If you’re unsure how much coverage you want, an insurance calculator can suggest a coverage amount based on your estimated needs and give you an estimate of the monthly expenses associated with the policy.

Learn your coverage needs with our critical illness insurance calculator.

Which are the best critical illness insurance companies in Canada?

We reviewed the top companies offering such policies so you can make an informed decision on your critical illness insurance provider. Companies like Canada Protection Plan (which allows credit card payments), Sun Life, Canada Life, BMO Insurance, and more offer critical illness benefits in Canada.

Read more about the best critical illness insurance companies in Canada.

How can I get my critical illness insurance quotes?

Still have questions? Schedule a chat with a licensed insurance agent from PolicyAdvisor.  They’re happy to go over anything you’re curious about and provide you with many quotes from the best insurance companies in Canada. Save time and money when you speak to our brokers, form your life insurance plan, and compare quotes online.

Insurance can be affordable

Find the lowest critical illness insurance quotes in Canada within minutes!

Frequently asked questions

How often do critical illness insurance payout?

On average, about 80 percent of critical illness insurance claims are approved, and this percentage continues to rise. Approval rates vary by provider, which is why you should research different companies and understand their coverage definitions and waiting periods before purchasing a policy.

Which three illnesses are covered under most critical illness policies?

Cancer, heart attack, and stroke are covered under most basic critical illness insurance policies. Enhanced policies may include up to 26 conditions or more.

How much is the maximum coverage for critical illness?

The maximum amount of coverage offered by Canadian critical illness insurance providers is $3 million. Usually, Canadians get $50,000 – $100,000 in critical illness coverage.

Do you need critical illness or disability insurance?

You need both critical illness insurance and disability insurance to fully financially protect yourself from injury or illness. They are two different insurance products. Critical illness insurance will pay you a lump sum payment if you are diagnosed with a critical illness.

Disability insurance will replace a portion of your income if you are sick or injured and cannot work. Both products will help ensure your family is financially taken care of if you become very sick.

Can I be refused critical illness coverage?

The average Canadian resident should have their application accepted depending on their history. However, you can be refused or denied coverage by the insurance carrier you applied to.

You and your family’s medical history will factor heavily into the underwriting process. If you have already been diagnosed with an illness, or have pre-existing conditions your likelihood of being insured or availability of coverage options may be reduced.

Will I get my money back if I do not claim on my critical illness policy?

Yes, some critical illness policies allow for a return of premium. Some insurers will return all of the premiums you’ve paid if you haven’t made a successful claim at the end of your term, hit certain age milestones, or surrender your policy.

This is an optional clause and it will increase the cost of premiums.

There’s also a return of premium on death clause, which means your premiums will be paid back to your chosen beneficiary should you pass away unexpectedly, without receiving a full benefit payment under your critical illness policy.

Do you have to spend a critical illness insurance payout on treating your illness?

No. You only need to be diagnosed with a covered condition to receive your critical illness insurance benefit. The tax-free payment can be used however you choose—whether for medical expenses, replacing lost income, supporting family needs, hiring care providers, or seeking treatment abroad.

What is the survival period in critical illness insurance?

In order to get your payout,  you must pass the 30-day survival period after your diagnosis. This waiting period is consistent across most insurance companies and covers most types of diseases. Some companies now permit a zero-day survival period for certain conditions.

If I get better, do I have to return the benefit?

You do not have to give back your critical illness payout if you recover from the covered medical condition. Critical illness plans are not defined by recovery, treatment, or death. It is a one-time payment that is triggered by the diagnosis of specific diseases or conditions.

Critical illness insurance coverage differs from other types of insurance in that it is a living benefit that pays out a one-time lump sum.

  • Term life insurance – pays out after your death
  • Long-term care insurance –  pays for assistance for those who can no longer take care of themselves
  • Disability insurance – pays out monthly if you cannot work due to an illness or disability
  • Critical illness insurance – pays out a one-time lump sum when you are diagnosed with a life-threatening illness or disease
/* Custom Archives Functions Go Below this line */ /* Custom Archives Functions Go Above this line */

Return of Premium in Critical Illness Insurance: What You Need to Know

A return of premium (ROP) rider in critical illness insurance is an optional add-on that refunds the premiums you’ve paid if you don’t make a claim during the policy term or under specific conditions, such as surviving the term or passing away.

If you’re considering critical illness insurance, adding an ROP rider can help you feel more secure about your investment. This rider ensures that even if you never need to use the coverage, you’ll still benefit financially.

In this article, we’ll explain how the return of premium rider works and benefits your finances.

How does a return of premium work?

In critical illness insurance, return of premium riders are available usually as an add-on. With this rider, you pay your monthly premiums as usual, and the policy provides coverage for critical illness or disability claims.

However, if no claim is made or under specific conditions, the insurance provider refunds a portion or all of the premiums you’ve paid.

There are three common types of ROP:

  • Upon death (Return of premium on death – ROPD): If you pass away while the policy is active, the insurer refunds all eligible premiums to your appointed beneficiary
  • At the end of the contract (Return of premium on expiry): If the policy term ends without a claim, the insurer refunds the premiums paid
  • On cancellation or surrender (Return of premium on cancellation/surrender): Some insurers offer partial or full premium refunds after a set number of years or at specific ages, like 65 or 75

Each provider has unique rules about how premiums are refunded and under what circumstances. To ensure you choose the right option for your needs, we recommend that you schedule a call with our experienced advisors.

Schedule a call for visitor insurance
Need insurance answers now?

Call 1-888-601-9980 to speak to our licensed advisors right away, or book some time with them below.

Can I get a return of premium with critical illness insurance?

Yes, you can get a return of premium (ROP) rider with critical illness insurance. This optional add-on allows you to receive a refund of the premiums you’ve paid if no claim is made during the policy term, on the expiry of the policy or death. 

Since critical illness coverage pays out a lump sum if you’re diagnosed with a covered condition, the ROP rider ensures your investment isn’t lost even if you remain healthy.

What are the benefits of return of premium riders?

Return of Premium (ROP) riders provide peace of mind by refunding premiums, adding value to your insurance, offering flexible refund options, and reassuring risk-averse policyholders.

A return of premium rider:

  • Ensures that you get a refund of premiums if no claim is made 
  • Turns your policy into a savings tool with either coverage or a payout
  • Offers reassurance for those worried about losing their investment
  • May offer refunds on expiry, surrender, or death, depending on the rider

What are the disadvantages of return of premium riders?

The disadvantages of return of premium riders are that they come with higher premiums, require long-term commitment, may exclude certain fees from refunds, and could limit potential investment opportunities.

  • Higher premium costs: The rider significantly increases your policy premiums
  • Long-term commitment: Requires maintaining the policy for the full term to benefit
  • Limited returnable premiums: Refundable premiums may exclude certain fees or add-ons
  • Opportunity cost: Extra premiums could be invested elsewhere for potentially higher returns

Which critical illness insurance providers offer return of premium riders?

Many Canadian insurance providers such as Beneva, Sun Life, RBC, Industrial Alliance, Desjardins, Manulife, Canada Life, and Empire Life offer return of premium (ROP) riders. 

These riders are offered with different options like Return of Premium on Death (ROPD), Return of Premium on Expiry (ROPX), Return of Premium on Cancellation (ROPC), and other flexible refund features.

Insurers offering return of premium riders with critical illness plans

Insurance Provider ROP Options
Beneva  ROPD, ROPX, ROPC
Sun Life  ROPD, ROPX, ROPC
RBC  ROPD, refunds all premiums if the policyholder dies while the policy is active
Industrial Alliance ROPD and flexible ROP options that vary by term
Desjardins  ROPD, ROPX, ROPC
Manulife  ROPD, ROPX, Return of Premium on Surrender (ROPS), with partial/full refunds based on term
Canada Life Various ROP options included in critical illness plans; specifics depend on the plan
Empire Life Return of Premium on Surrender or Maturity, offering percentage refunds if no claims are made

Learn more about the best critical illness insurance companies in Canada
Looking for the lowest return of premium rates?

Get the best quotes at PolicyAdvisor!

What is the cost of a return of premium rider in critical illness insurance?

The cost of adding a return of premium (ROP) rider in a basic critical illness policy costing $79.65 per month could be $117.99 per month.

A return of premium rider significantly increases your critical illness insurance premiums, typically by 30–50%, depending on the rider type, insurer, and your policy details.

These costs also differ based on the type of return of premium rider:

  • Return of premium on death (ROPD): Lower additional cost since it refunds premiums only if the insured passes away during the policy term
  • Return of premium on expiry (ROPX): Higher cost as it guarantees a full refund of premiums if no claim is made by the end of the term
  • Return of premium on surrender (ROPS): Costs are similar to ROPX but allow partial refunds if the policy is canceled early

Additionally, long-term policies like term-75 or lifetime coverage tend to incur higher premiums for ROP riders due to extended refund commitments.

Is a return of premium on critical illness taxable?

No, the return of premium (ROP) benefit on critical illness insurance is generally not taxable in Canada. When you purchase a critical illness insurance policy, you pay your premiums using after-tax dollars, meaning the money you use to pay for the policy has already been taxed. 

Therefore, when you receive a refund of those premiums through an ROP rider whether upon expiry, surrender, or death, it is treated as a return of your personal contributions, not as income.

Comparison of return of premium riders with traditional critical illness insurance

Return of premium riders enhance critical illness policies by offering premium refunds, unlike traditional plans that provide coverage only. Here’s how these differ:

Premium refunds:

  • ROP riders: Refund premiums if no claim is made (on expiry, death, or surrender)
  • Traditional CI plans: Do not refund premiums regardless of claims

Cost:

  • ROP riders: Typically 30–50% more expensive
  • Traditional CI plans: More affordable but lack refund benefits

Flexibility:

  • ROP riders: Allow refunds under specific conditions (expiry, death, surrender)
  • Traditional plans: Offer no such options

Best suited for:

  • ROP riders: Ideal for risk-averse individuals seeking financial security
  • Traditional plans: Suitable for those focused on lower premiums
Critical illness riders vs Critical illness insurance: Read more!

How do I get a return of premium coverage?

You can add a return of premium rider to your critical illness insurance policy while purchasing the plan or during eligible upgrade periods.

To get ROP coverage, you need to consult with your insurance provider to explore available rider options. Typically, a return of premium rider is added when purchasing a long-term critical illness policy. The process may involve assessing your eligibility based on age, health, and other criteria.

To qualify for ROP coverage, you must meet specific insurer requirements regarding age, policy type, and health status.

  • Age requirements: Most insurers offer ROP riders to individuals aged 18–65
  • Policy type: ROP is typically available on long-term critical illness policies, not short-term plans
  • Health status: Eligibility may require passing a medical exam or meeting the insurer’s health guidelines
  • Consistent premium payments: Some insurers mandate a history of timely premium payments
  • Insurer-specific rules: Each provider may have unique conditions for adding ROP, such as coverage amount or policy terms
Read more about when to get critical illness coverage.
Need help?

Call us at 1-888-601-9980 or book time with our licensed experts.

Frequently asked questions

What happens to my return as a premium rider if I cancel my policy early?

If you cancel your critical illness insurance policy early, the impact on your return of premium (ROP) rider depends on the specific terms of the rider. Policies with a Return of Premium on Surrender (ROPS) option may provide a partial refund based on how long the policy was active.

For example, you might receive 50% of your premiums back after 20 years, with the percentage increasing the longer you keep the policy. However, not all ROP riders include this option, so it’s important to review your policy details.

Can return of premium riders be added to existing critical illness policies?

In most cases, return of premium (ROP) riders cannot be added to an existing critical illness insurance policy. ROP riders are usually selected at the time of purchase and integrated into the policy from the start. If you are interested in this feature, you may need to apply for a new policy that includes an ROP option. 

How does a return of premium rider affect my overall premium rates compared to standard policies?

Adding a return of premium (ROP) rider to your critical illness insurance policy can significantly increase your premium rates—typically by 30–50%. The exact increase depends on the type of ROP rider (e.g., on expiry, death, or surrender), the policyholder’s age, and the duration of the policy. 

For instance, a standard premium of $79.65 per month could rise to $117.99 with an ROP rider, reflecting an additional $33.84 monthly. While the cost is higher, the rider offers added financial security and peace of mind.

Are there any age restrictions for purchasing a return of premium rider with critical illness insurance?

Yes, there are generally age restrictions for purchasing return of premium (ROP) riders, and these vary by insurer. Most providers allow ROP riders for policyholders up to a specific age, such as 60 or 65, since the rider often involves long-term commitments or payouts tied to policy maturity.

Additionally, age impacts the cost, as older policyholders typically face higher premiums for adding an ROP rider. Be sure to check the eligibility criteria with your insurer.

/* Custom Archives Functions Go Below this line */ /* Custom Archives Functions Go Above this line */

Critical illness insurance vs disability insurance — what’s the difference?

Critical illnesses insurance vs disability insurance can be easy to mix up. They have a lot in common, and can both deal with your ability to earn a paycheque.

Sometimes, people who have insurance believe that because they have one type of policy, they’re covered for everything. But that’s not the case. In this article, we look at the difference between critical illness insurance and disability insurance.

Schedule a call for visitor insurance

Need insurance answers now?

Call 1-888-601-9980 to speak to our licensed advisors right away, or book some time with them below.

What’s the difference between critical illness vs disability insurance?

Disability insurance (DI) and critical illness insurance (CI) cover different things and give payouts in different ways. They both give you money if something happens to impact your health, and you are no longer able to work.

The primary difference is that critical illness insurance only pays out one time. Disability insurance gives you monthly payments until you get better and can return to work.

The chart below shows some of the main differences and similarities between DI and CI.

Key differences between critical illness insurance vs disability insurance

Aspects Disability Insurance Critical Illness Insurance
Claim event(s) Any illness or injury that leads to a loss of income Diagnosis of a covered life-threatening illness or condition (severe disability may be included)
Covered conditions Any medical condition that would prevent you from working, including:

  • Mental health struggles
  • Broken bones
  • Back injuries
  • Carpal tunnel
  • Seizures
  • Hearing or vision loss
26+ common conditions, including:

Benefit amount (how much your payout would be) Replaces a part of your monthly income $25K – $2.5M+ depending on your policy
Payment frequency Monthly payments One or more lump-sum payment(s)
Benefit duration Until you recover or your policy lapses (can last until you reach 65 or older) One time only
Coverage term Most policies end when you turn 65 You can get coverage up to age 100
Return to work Monthly payments stop once you return to work (although partial payments may be available) Payout is not tied to work — you are paid out whether you are working or not
Period before benefits begin Waiting period (or elimination period) of 30 days to 1 year Survival period of 30 days
Income replacement Meant for ongoing income replacement Not meant as income replacement, but can help

What is a critical illness insurance policy?

Critical illness insurance is a type of insurance that gives you a tax-free, lump sum of money if you become sick with a certain illness or need serious medical treatment.

It gives you the peace of mind to focus on recovering without worrying about how you’re going to afford the things you need.

You can use a critical illness insurance payment for anything you need. But most people use it to pay for costs while they recover. That can include out-of-pocket medical treatment, house cleaning, or even a gift basket for your neighbours if they watered the plants while you were in the hospital – the choice is yours.

Key features of critical illness insurance are as follows:

  • Benefit amount: $25,000 to $2.5 million or more — decided by you and your insurance provider when you buy the policy
  • Payment: One-time tax-free lump sum (some companies will pay out on more than one occasion, ex. if you get the same serious illness twice after a period of time)
  • Beneficiary: The insured person (you)
  • Requirements: 30-day survival period — you must survive for at least 30 days after diagnosis for the insurance company to pay you

What does critical illness insurance cover?

A critical illness plan will typically cover 26 or more types of diseases in Canada, like cancer, heart attack, kidney failure, and more.

Sometimes, a disability may count as a critical illness. For example, blindness and paralysis are disabilities that are also critical illnesses.

critical illness insurance covers
Full Guide to Critical Illness Insurance in Canada

What is a disability insurance policy?

Disability insurance is a type of insurance that gives you monthly payments if an injury or illness affects your ability to work. It’s meant to replace the income you lose while you’re recovering. You may also see it called disability income insurance.

There are two different types of disability insurance coverage: short-term or long-term. Long-term disability usually kicks in if your disability lasts longer than the short-term disability insurance period.

The amount of money you get from disability payments depends on how much your regular income is. It’s also a regular, ongoing payment, unlike CI insurance that gives you the payout all at once.

DI payments are meant to be used to cover your mortgage payments or rent and pay for your normal daily expenses while you’re not working and recovering. But you can use it any way you like. Payments continue until you get better enough to go back to work, or until your coverage ends.

Key features of disability insurance include:

  • Benefit amount: Depends on your monthly income (avg. $2,000+)
  • Payment: Monthly until you recover and return to work, or until your coverage period ends — whichever comes first
  • Beneficiary: The insured person (you)
  • Requirements: elimination period of waiting period of 30 days to 1 year or more — your disability must last longer than this period before your insurance payments can begin

What can disability insurance cover?

A disability policy will cover any injury or illness that prevents you from working. This includes mental health concerns.

Most people only think of physical, visual injuries as disabilities — like if you fall at work and break a bone or if you suffer a severe burn. Those count as covered conditions for sure. But the 3 most common disability insurance claims in Canada are for:

  1. Mental illness
  2. Musculoskeletal issues
  3. Injury or poisoning
disability insurance Canada
Be prepared for all health crisis!

Find the best critical illness and disability insurance quotes in Canada

Is critical illness insurance covered in health insurance?

No, critical illness insurance is not included in these plans and must be purchased separately. Standard health insurance in Canada covers medical treatments, prescriptions, and routine care. Critical illness covers costs not typically addressed by health insurance, such as loss of income, home modifications, or experimental treatments.

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.

Do I need disability insurance if I have critical illness insurance?

It depends. Both policies can help protect your income and savings if something serious happens to health and stops you from working. But they work best in different situations.

Whether you need just one or the other, or both, depends on your needs, age, and other factors. The policies do complement each other very nicely and give you a well-rounded way to protect your income.

The best way to figure out which one you need is to speak with our licensed insurance agents. We’re friendly and experienced, so we are happy to help you assess your needs.

Are critical illness and disability insurance offered as a part of group benefit? 

Yes, critical illness insurance and disability insurance are offered as an optional or add-on benefit by some Canadian employers. However, when compared with personal critical illness and disability insurance plans, group policies have lower coverages. There is a lack of flexibility with group plans while personal critical illness and disability plans are customized for every individual.

Read more about critical illness as part of group plans in our comprehensive guide

Where can I compare critical illness versus disability insurance quotes in Canada?

You can shop and compare instant quotes from leading insurance companies on PolicyAdvisor.com. Get personalized quotes for critical illness or disability insurance in minutes on our website. Just click the button below to get started.

As Canada’s best insurance broker, we’re also happy to do the legwork for you if you want! Click here to book a free consultation call with our licensed advisors and let them weigh the pros and cons for you personally. Our team can give you advice tailor-made for your circumstances, so you can make the best decision.

Need further assistance?

Give us a call at 1-888-601-9980 or book some time with our licensed experts.

Frequently asked questions

Is it better to get disability or critical illness insurance?

It really depends on your needs. Both types of insurance policy serve different needs in different ways, so there is no answer as to which one is “better” to get.

People working high-risk jobs may find it more useful to get disability coverage. Or, if they find they have a good disability plan through their work or union benefits, they may find it better to buy their own critical illness plan to cover them

Meanwhile, self-employed people may choose to get both. They may not have the benefit of a group plan through their work, so may want to get both for maximum coverage.

Does a critical illness policy cover disability and vice versa?

Sometimes there can be overlap between critical illness coverage and disability insurance. Some critical illnesses are disabilities (such as blindness and paralysis). What counts as a disability for insurance purposes can vary a lot, so it’s more difficult to say.

In our experience, there can be overlap between the two. But it’s very case-by-case and depends a lot on the individual diagnosis.

Can I claim for both critical illness insurance and disability insurance in Canada?

Yes. If you have both types of coverage and something serious happens to your health to stop you from working, you can submit a claim for both policies.

Your CI provider will give you a one-time lump sum payment. And your disability coverage will start giving you monthly payments until you recover. You will get both payments.

Which is cheaper — disability coverage or critical illness coverage?

It depends. How much your premiums will cost for either types of these insurance policies depends on things like:

  • Age
  • Health
  • Occupation
  • Policy details
  • Coverage extent
  • Add-on riders
  • And more

Remember — these policies serve different needs. Yes, they work together very well to help protect your wallet if something unexpected happens. But they can be like comparing apples and oranges.

If you’re on a tight budget and worried about whether you can afford both, give us a call at 1-888-601-9980. Everyone’s situation is different, so our agents can help you figure out your best move.

Do Canadians ever need both CI and DI insurance?

Yes. Many Canadians can benefit from having both critical illness and disability insurance coverage.

Critical illnesses in particular are very common in Canada. Disability insurance is also more common than most people realize.

Having insurance gives you peace of mind, especially if your family relies on the money you earn. If something unexpected happens and you can’t work, insurance lets you still be able to pay bills and keep up with your everyday expenses.

A lot of Canadians expect to rely on the government to take care of their expenses if they become seriously ill. But we do not recommend this because the amount you receive is often not enough to cover your normal day-to-day needs.

/* Custom Archives Functions Go Below this line */ /* Custom Archives Functions Go Above this line */