Critical Illness Insurance
Financially protect yourself against
a life-altering illness.
What is critical illness insurance?
Critical illness insurance (CII) is coverage that can help Canadians or those living in Canada pay the additional costs associated with life-altering illnesses. It is a versatile solution that can address a variety of needs for many different people at different stages of life.
What can critical illness insurance cover?
Illnesses commonly covered by CII include cancer, heart attack, stroke, major organ failure on waiting list, severe burns, and more.
Claims are assessed based on critical illnesses specifically covered in the client’s critical illness insurance contract at time of issue. Covered illnesses must meet the specific definition requirements, and coverage is subject to exclusions and limitations.
Why is critical illness insurance important?
If you’re diagnosed with a covered illness, a CII policy can help you pay for expenses that your provincial or territorial health plan or other insurance doesn’t cover, like home-care costs and more.
CII pays a lump-sum payment that you can use however you want; to help you, your family or business financially manage a life changing illness so that you can focus on your recovery.
Who is critical illness insurance for?
CII is generally intended to help anyone manage financial hardship due to a covered critical illness.
Single people
CII may help individuals maintain their independence by allowing them to pay for care services and other unexpected costs to manage their recovery.
It can also help protect savings and RRSPs from unplanned withdrawals in the short term and retirement income in the long-term.
Families
The benefit from a CII policy can help a family cope financially at a very stressful time if a child is seriously ill, even if they don’t suffer an illness.
By deciding to purchase coverage early in life, you may give your child:
- Guaranteed coverage as an adult
- Locked in lower premiums
- An opportunity for cash back later in life
Business owners
CII can also help businesses in case the business owner or a key employee becomes critically ill.
The benefit from the insurance can assist with business continuity, debt repayment and succession planning if an illness strikes owners or staff.
What are the benefits of critical illness insurance?
Lump sum payout
CII provides a lump sum payout if you are diagnosed with a covered critical illness. This allows you to focus on treatment and recovery without worrying about additional medical or other costs.
Payout flexibility
The lump sum from CII is yours to use however you see fit – to pay medical bills, daily living expenses, mortgage, and more during treatment/recovery, home health care, etc.
Complementary to health insurance
CII works alongside other types of coverage, like Personal Health Insurance (PHI) to cover additional expenses not paid for by regular medical plans. It helps fill the gaps if a critical illness strikes.
Our critical illness insurance products
At LifeGuard, we offer 2 critical illness insurance products: Sun Critical Illness Insurance and Express Critical Illness Insurance. These products offer different amounts of coverage.
Life Critical Illness Insurance
Our most comprehensive CII policy.
It can:
- Cover 26 full-payout illnesses, 8 partial-payout illnesses and 5 full-payout childhood illnesses,
- Provide up to $4,000,000 in coverage for adults, and
- Provide critical illness insurance for children – up to $1,000,000 in coverage.
Express Critical Illness Insurance
Our CII solution that offers instant online approval with no medical exam or blood work required.
It can:
- Cover 1, 3, or 7 full-payout illnesses depending on which plan you choose: basic, enhanced, or comfort,
- Offer coverage options for the most common critical illnesses in Canada (like cancer, heart attacks, strokes and more),
- Provide either $25,000 or $50,000 in coverage for adults.
Get a critical illness insurance quote
You can apply for Express Critical Illness Insurance online.
Online approval is instant with no medical or blood work required.
Frequently Asked Questions
Do I need to take a medical exam for critical illness insurance?
It depends on the product you’re applying for. If you’re applying online for Express Critical Illness Insurance, then you won’t have to answer any medical questions or undergo a medical exam.
However, if you’re applying for LifeGuard Critical Illness Insurance, which offers coverage up to $4,000,000, you may need to complete a medical exam during the application process.
Is a critical illness insurance payout taxable in Canada?
In Canada, there are no specific tax laws governing CII policies. However, the Canada Revenue Agency (CRA) has developed its own position on the tax treatment of a benefit paid under a CII policy.
Based on the CRA’s current position, LifeGuard understands that benefits for individually owned CII policies are paid tax-free.
Talk to a tax professional for more information.
How long is the waiting period for critical illness insurance?
The most common type of waiting period for CII is the survival period. In Canada, if included, the survival period is usually 30 days. This means that, in some cases, you are required to survive a minimum of 30 days after the diagnosis of the covered illness before you can submit a claim and receive the benefit.
Other covered illnesses or diseases, such as cancer, require your coverage to be in effect for a certain amount of time before you’re eligible for the benefit.
What types of cancer are covered by critical illness insurance?
Our critical illness insurance products cover carcinoma, melanoma, leukemia, lymphoma and sarcoma.1
To receive a payout, you must have a cancer diagnosis confirmed by a specialist. It’s important to note that the cancer definition has exclusions. Please refer to your contract or speak with your advisor.
Does critical illness insurance cover me for my whole life?
It depends on the product you buy.
LifeGuard Critical Illness Insurance can cover you for your whole life but Express Critical Illness Insurance won’t.
Does my child need critical illness insurance?
You may need critical illness insurance for a child if you think you can’t afford all the expenses that may arise if your child is diagnosed with a covered critical illness.
For example, you may need to take time off work (resulting in income loss) to take care of your child. In such cases, a critical illness insurance plan for a child will give you a lump sum of money if your child ever gets one of the illnesses covered in the policy.
What is the difference between life insurance and critical illness insurance?
The main difference between critical illness insurance and life insurance is how the insurance benefit is triggered.
CII benefits are paid out when you or the insured person is coping with or recovering from a covered critical illness as defined in the contract.
Life insurance benefits, however, are paid out to your estate or named beneficiary when you die.