Critical Illness Insurance

Your provincial health insurance plan will pay for your medical diagnosis and hospital stay but falls short on cost overruns like home care or transportation to and from your appointments. Health insurance does not replace your income or handle recurring bills like your mortgage or rent, car payments, and other utility costs.

A critical illness insurance payout is typically not taxable, meaning you don't owe income tax on the benefit. It is a lump sum benefit to use at your discretion.

Depending on your policy, a critical illness waiting period typically follows a 30-day survival period. Still, it can be as long as 90 days depending on the illness you contract.

Typically, if the critical illness is related to your pre-existing condition, it will not be covered. However, depending on your insurer, you may be able to add a pre-existing condition amendment. Speak with your adviser or broker.

There are online calculators to help you. But it's as easy as adding up any lost income, mortgage or rent payments, any debts, home modifications, domestic help, and other miscellaneous items such as the cost of transportation to treatments, hospital parking etc.

Again, most people choose an amount between $50,000 and $100,000. Still, much will depend on how much money you make, your monthly expenses, and recovery expenses.

While it depends on your insurer, here are some of the most commonly recognized critical illnesses in the insurance industry.

• Major Cancer
• Heart Attack (different severities may or may not result in a payout)
• Stroke with a permanent neurological disorder
• Requiring a coronary artery by-pass, or open-heart surgery
• End-stage kidney failure
• End-stage lung disease
• End-stage liver failure
• Coma
• Irreversible loss of hearing (deafness)
• Permanent loss of speech
• Major Burns
• Major organ or bone marrow transplant
• Multiple Sclerosis
• Muscular Dystrophy
• Idiopathic Parkinson’s Disease
• Alzheimer’s Disease / Severe Dementia
• Primary Pulmonary Hypertension
• HIV Due to Blood Transfusion and Occupationally Acquired HIV
• Benign Brain Tumour
• Encephalitis
• Severe Bacterial Meningitis
• Blindness
• Paralysis
• Terminal Illness

While popular life insurance companies in Canada include Manulife and Sun Life, the best company for your critical illness insurance is dependent on your individualized needs and factors. To find the most suitable insurer for your case, be sure to compare life insurance quotes with us to find a provider that will cover all your desires with the best rate and value.