You are self-employed
No sick pay and no group benefits. If you stop working, your income stops with you.
Service 02 ยท Critical illness
Critical illness insurance pays you while you recover.
Cancer, a heart attack or a stroke can stop your income for months. Critical illness insurance pays a lump sum to you, so treatment does not drain your savings or your RRSP.
How critical illness insurance works
You choose a coverage amount. If you are diagnosed with a condition the policy covers, and you survive the waiting period in your contract, the insurer pays you that amount as a lump sum. On personally owned policies the payment is generally tax-free.
The money is yours to use. People use it to keep paying the mortgage, replace lost income, pay for treatment and drugs OHIP does not cover, let a spouse take time off work, or travel for care.
What it covers
Most policies cover the three conditions behind most claims: life-threatening cancer, heart attack and stroke. Many cover 20 or more conditions in total. The definitions in the contract matter more than the count, so I read them with you before you choose.
Where your work benefits stop
Disability insurance and critical illness insurance do different jobs. Disability coverage replaces part of your income after a waiting period, and it can stop once you return to work part-time. Critical illness pays one lump sum on diagnosis, whether or not you keep working. Many group plans include little or no critical illness coverage.
Worth reviewing if
Critical illness coverage fits people whose savings would not carry them through months of treatment and recovery.
Your household needs both incomes
If one of you is sick and the other takes time off to help, two incomes can drop at once while the bills stay the same.
Your savings have a job already
An RRSP or RESP you would rather not raid. A lump sum lets those plans keep growing while you recover.
Common questions
Which conditions are covered?
It depends on the policy. Cancer, heart attack and stroke appear in almost every contract. Others, like multiple sclerosis, kidney failure or major organ transplant, vary by insurer. Some policies also pay a smaller early benefit for less severe diagnoses.
Two policies can list the same condition and define it differently. That is why I compare the wording and not just the list.
What is return of premium?
It is an option that refunds some or all of your premiums if you never claim, either when the policy ends or if you cancel after a set number of years. It raises the cost. For some people the refund is worth it and for others it is not, so we look at the numbers both ways.
I have disability insurance at work. Do I need this too?
They cover different things. Disability coverage replaces part of your income over time. Critical illness pays a lump sum you can use for anything. We look at what your work plan pays, when it starts and when it stops, and see whether a gap remains.
Can I get coverage with a health history?
Often yes, with limits. An insurer may exclude a condition, charge more, or decline. Insurers treat histories differently, so I compare before you apply. No one can promise an outcome before the insurer reviews your application.
Who can skip critical illness insurance?
People with large emergency savings, strong disability coverage and low fixed costs may not need it. If that describes you, I will tell you, and that is a good outcome.
Plan for the recovery, not only the worst case.
In 15 minutes we check what your work benefits pay, what your savings could carry, and whether a gap remains.
Book a 15-minute review
Or call or text (647) 627-2480