Critical illness insurance

What is critical illness insurance?

Critical illness can give you a tax-free payment if you’re diagnosed with a serious condition. Your contract will define which conditions you’re covered for, but some examples include cancer, heart attack or stroke.

It’s more than just a payout

Coping financially with an illness is just part of the picture. Having access to emotional support and medical treatments can help your recovery.

Why do you need critical illness insurance?

• It’s more common than you think - a serious, life-altering illness affects one in three Canadians in their lifetime.
• Cover daily costs - use your payout to help with your expenses while you recover
  
• Protect your retirement savings - Don’t dip into your savings or investments to pay for additional medical costs
  
• Focus on your recovery - Concentrate on getting healthy knowing your benefit payment can help with your finances
  

How much do you need?

Depending on the severity of your illness, you may need to take time off work. Let’s consider your income and expenses to determine how much coverage you need. 

First, let’s look at your income.

• How much income might you lose if you were too sick to work?
• If your spouse had to take a leave of absence how much income would they lose?

Now, let’s look at your current expenses.

• Mortgage or rent
• Loans and other debts
• Groceries and utilities
• Credit card payments
• Other living expenses

Lastly, keep in mind you may incur additional expenses.

• Healthcare (hospital room, drug costs, etc.)
• Travel for treatments
• Childcare during treatment and recovery
• Domestic help (live-in nurse)

These are some of the expenses that can give you an idea of how much coverage you may need. This is only the first step. 

What happens if you don't experience a critical illness?

You can add a return-of-premium benefit to your critical illness insurance policy. If you don’t experience a serious illness after as early as 10 years, you can choose to get your money back. If you choose this option your policy expires.

Do you need critical illness or disability insurance?

Depending on your situation you may need only critical illness or disability insurance but there are many times when you need both to fully protect yourself.

Critical illness and disability insurance work together to help reduce the impact of disability or serious illness.