Why Critical Illness Insurance


Critical illness insurance is an insurance policy which will pay out a tax-free cash lump sum to you in the event that you suffer a major illness or health condition. As life expectancy increases due to improvements in the early diagnosis and treatment of conditions such as heart disease and cancer, those living with the after-effects of such health problems has increased and, for many, the burden of extra costs associated with such illnesses can be significant. Such costs can include the need to make up for lost or reduced income while you were too ill to work (or for your spouse to take care of you), paying for caregivers, modifying or purchasing new cars, houses or other equipment to support your needs to name but a few. With the Canadian Cancer Society recently reporting that the survival rate for cancer is now over 60%, with many other cancers far exceeding this rate, considering how you would cope financially in such a situation has become a pressing concern for many.

Below are some key features of critical illness insurance policies:

  • There is usually a waiting period on the policy i.e.: a time by which you must survive your illness following the initial diagnosis, before the policy will pay out.
  • The policies usually cover most major illnesses such as serious heart conditions, cancer, strokes, blindness, deafness, paralysis and others.
  • There are no conditions on how you use the payment – once the lump sum has been made to you, you are free to use it as best suits you and your family. It is known as a “living benefit” as the lump sum is paid to you as the policy holder, instead of to a beneficiary.

In contrast to disability insurance, critical illness insurance is paid even if you are able to return to work following your diagnosis.

Talk to us, we can help determine what makes the most sense in your situation.

Disability Insurance

Why should you consider personal disability insurance?

  • Worker’s Compensation only covers work related accidents.
  • Unemployment insurance only covers 15 weeks.
  • Canada Pension Plan: Are you comfortable relying on the government for a benefit that can change?
  • Group and association coverage can fill a valuable role in long-term disability protection. (However, the benefit may be limited by the definition of disability and coverage amount.)

What is disability insurance?

Disability insurance provides you with a portion of your income in the event that you suffer from an illness or accident which means that you can’t work, either temporarily or on a permanent basis.

Studies show that you are actually more likely to sustain a disability during the course of your working life than to die whilst of working age. A disability can have a dramatic and long-term impact on your earning potential – in fact, the Council for Disability Awareness has found that the average absence from work for a long term disability is nearly three years.*

Life Insurance


At different stages of life, the need for life insurance will vary, here’s a list of reasons for life insurance:

  • Young Singles/Young Couples- cover off any debt including debts with co-signers,  final expenses, does your family history have significant health issues?
  • Young Family – debts, mortgage, final expenses, ongoing income needs, education fund
  • Maturing Family- debts, mortgage, final expenses, ongoing income needs, education fund
  • Pre-Retirees- debts, mortgage, final expenses, ongoing income needs, final taxes
  • Retirees – debts, final expenses, leave a legacy, final taxes