Insurance / Critical Illness Insurance
Critical Illness Insurance: Cash When You Need It Most
Critical illness insurance pays you a tax-free lump sum if you are diagnosed with a covered illness such as cancer, a heart attack or a stroke. You can use the money any way you choose.
Thanks to medical advances, more Canadians survive serious illness than ever before. But recovery can take months, and the costs add up: time off work, a spouse taking leave, treatments and medicine not covered by OHIP, or changes to your home. A critical illness payment lets you focus on getting better.
Critical illness insurance at a glance
- Tax-freeLump-sum benefit paid to you
- 25+covered conditions on many plans, including cancer, heart attack and stroke
- 30 daysTypical survival period after diagnosis before the benefit is paid
- $10,000 to $2M+Coverage amounts available
- Return of premiumOptional rider that refunds premiums if you never claim
- Child coveragePlans and riders available to cover your children
How you can use the money
Replace lost income
Cover your pay, or your spouse’s, while you recover.
Pay for treatment
Pay for drugs, therapies or private care not covered by your provincial plan.
Keep up with the mortgage
Make your mortgage or rent payments so your home is not at risk.
Adapt your home
Pay for renovations, a wheelchair ramp or home care.
Take time to recover
Travel, rest or spend time with family without money worries.
Critical illness vs. disability insurance
Critical illness
- Lump sum on diagnosis of a covered illness
- Paid even if you return to work
- Use the money for anything
Disability
- Monthly income while you cannot work
- Covers illness and injury
- Stops when you go back to work
Both together
- Cash for big costs right away
- Monthly income for a long recovery
- The strongest safety net for your family
Learn more about disability insurance.
Frequently asked questions
What illnesses are covered?
Most plans cover cancer, heart attack and stroke, and many cover 25 or more conditions, such as kidney failure, multiple sclerosis, Parkinson’s disease and major organ transplant. Each policy lists exactly what is covered.
Is the benefit taxable?
When you pay the premiums on a personal policy, the lump-sum benefit is generally tax-free.
Can I get critical illness insurance without a medical exam?
Some plans offer simplified coverage with a short health questionnaire, usually for lower amounts.
What is return of premium?
An optional rider that refunds some or all of your premiums if you never make a claim, or if you cancel after a set number of years.
Talk to Devendra Kumar, Financial Planner (CLU, CHS)
DK Insurance & Investments Inc. serves families across the GTA from offices in Vaughan, Mississauga and Brampton. Call or text +1-647-761-0517 for a free, no-obligation conversation.