All That You Need to Know About Critical Illness Insurance

critical illness insurance

While researching different Insurance Policies and wondering which one is best for you, you may have come across one called Critical illness insurance. This particular type of insurance provides financial security for serious medical issues and emergencies. Since everyone is different, with unique situations, each policy will be different as it is arranged to benefit the policyholder. There are several factors taken into consideration. Family medical history, Health of policyholder, Sex and Age, as well as the extent of the policy’s coverage are all part of creating a unique Critical Insurance Policy. Don’t let those factors scare you, let’s see what else this type of insurance can do.

 Critical Illness Insurance Uses

With Critical Illness Insurance, medical treatments that aren’t covered by the usual policies, and services that aren’t commonly available, are accessible. Most policies from employment are helpful, but they only go so far. So those who are ill can concentrate on healing and getting better, this insurance assists with everyday living costs. Even transportation to and from treatments, installing chair lifts, and making vehicles more accessible. Those with Critical Illness Insurance can use the funds to take vacations or spend more time at home with family. This is extremely helpful when dealing with a terminal illness. With Critical Illness Insurance, child care is also covered. This policy tends to be flexible, so you can use the funds in whatever way you choose or need. You won’t have to worry if you get seriously sick and become unable to work. The funds are usually available in a lump sum, which helps manage financial obligations right away.


What Is Covered?

Cancer, Heart Attack, Heart Surgeries and Organ Transplants are just examples of what can be covered under Critical Illness Insurance. As with any policy, you would have to read over your insurance to see what is covered in your case. Although usually low cost, this type of policy may have limitations. For example, not all cancers could be covered, or certain chronic illnesses. If an Illness returns, it may not be covered if you will pay more premiums the more illnesses you add to a policy. Some Critical Illness Insurance Policies have something called a “minimum survival period,” where the policy holder has to live for a certain number of days after being diagnosed, before the funds are available.


It’s best to know all the options and details of any policy. If you feel a Critical Illness Insurance Policy is right for you, but you don’t know if you should have it as a lone policy, remember adding Critical Illness Insurance to any existing policy can save you money. Discuss it with a Canadian LIC insurance broker who will be able to guide you to the right choice.

Critical illness insurance can help people get back to the living

If you are lucky, you will not need to ever use critical illness insurance.

If you are ever diagnosed with cancer, heart attack or any such severe medical conditions, critical illness insurance may be one of the only things protecting you and your family from financial ruin.

This insurance plan provides coverage for severe or critical medical emergencies. Since these emergencies tend to incur greater than usual medical costs, this policy can pay out the overruns that traditional insurance cannot cover.

This way you can focus on your recovery knowing that your expenses are covered.

How can critical illness insurance help?

  1. Lump-sum payout – With this insurance policy, you receive a lump sum payment that can be used to cover your medical costs, including medical care, travel expenses or wages of a family member leaving work to help. This insurance plan pays you cash benefits when you are diagnosed with a specified covered illness, which in turn can help alleviate some of the stress that you are already facing.
  2. Tax-free payout – You will receive a one-time benefit payment that you can use for any expenses that needs to be covered.
  3. Low cost – These insurance policies are generally less expensive than traditional insurance plans. However, please note that each plan may cover only certain specified illnesses. So it is important that you review the terms, conditions, exclusions and limitations carefully.
  4. Peace of mind – With this insurance policy, you can focus on your recovery without the added stress of financial instability. You no longer have the dilemma of choosing between what’s best for your family and what’s best for you.
  5. Additional support – In addition to covering the costs for your treatment, you can even use the benefits to help and support your family. The plan can cover counselling services, family support services, child care services, legal consultations and nutritional advice.
  6. Protect your savings – You need not dip into your retirement or personal savings to cover for your medical expenses with this policy.

What does critical illness insurance cover?

There are around 26 illnesses listed by the Canadian Life and Health Insurance Association. Depending on the policy and insurance provider, the plan can cover anywhere between one major illness to all 26 medical conditions. Some plans even offer coverage for other medical conditions.

It is advisable that you go through the policies carefully to find one most suitable for you. Feel free to contact us for more information or for assistance. You can rest assured that we will be there for you.