Critical Illness Insurance allows you to focus on your recovery and preserve your financial security and that of your family. To better understand this type of insurance, we have created a guide that delves into the topic and answers your questions.
- What is critical illness insurance?
- Who is this insurance for?
- How do I access it?
- Which critical illnesses are covered?
- What is the difference between critical illness insurance and disability insurance?
- What is the typical cost of critical illness insurance?
- What are the main benefits of my critical illness insurance policy?
- What are the most common exclusions related to my contract?
- Compare critical illness insurance quotes
What is critical illness insurance?
Critical illness insurance provides you with a tax-free lump sum if you are diagnosed with a serious medical condition, such as cancer, heart attack or stroke. With this amount, you can do the following:
- Stop working during treatment or recovery
- Enjoy financial peace of mind during your recovery period
- Access private health services or treatment outside the country
- Stay close to the hospital that provides the health services
- Get help at home
You can choose an amount that corresponds to your needs.
Who is this insurance for?
The vast majority of Canadians need critical illness insurance because everyone is vulnerable to future health problems. Critical illness insurance will allow you to tackle the problem with a reduced financial burden. This insurance is valid for a child, a healthy adult or an older individual.
Still have questions about the critical illness insurance offered by Matcha Insurance? Our financial security advisors are available to answer any questions you may have and to reassure you.
Contact us now by calling 1 844 532-3228 or Book an Appointment.
Which critical illnesses are covered?
There are several critical illness insurance coverages. Here are two very common options: The first covers the four most commonly diagnosed critical illnesses in Canada, while the second, more comprehensive option, provides you with coverage for the diagnosis of 25 or more serious illnesses. The price may vary depending on the number of diseases covered under your plan.
Four major serious illnesses in Canada:
- Stroke (cerebrovascular accident)
- Heart surgery (coronary artery bypass surgery)
- Cancer
- Heart attack (myocardial infarction)
26 critical illnesses generally covered with your more comprehensive insurance:
- Cancer
- Autism
- Aplastic Anemia
- Third-degree burns
- Blindness
- Coma
- Some types of diabetes
- Muscular dystrophy
- Cystic fibrosis
- HIV diagnosis
- Cardiovascular event
- Stroke (cerebrovascular event) producing neurological sequelae
- Major organ transplant
- Multiple sclerosis
- Alzheimer’s disease
- Parkinson’s disease
- Myocardial infarction
- Coronary artery bypass surgery
- Meningitis
- Paralysis and Cerebral Palsy
- Loss of speech
- Loss of autonomy
- Loss of Limbs
- Deafness
- Heart valve replacement
- Benign brain tumour
What is the difference between critical illness insurance and disability insurance?
Disability Insurance
- Pays you an amount if you become disabled as a result of an accident or illness that prevents you from working.
- Monthly amount paid for a specified period (more details on this insurance here)
Critical Illness Insurance
- Pays you an amount if you are diagnosed with a critical illness covered by your policy
- The amount is paid in full at the time of the claim
If you become disabled as a result of a critical illness, you can make claims under both critical illness insurance and disability insurance.
What is the typical cost of critical illness insurance?
Several factors influence the cost of critical illness insurance:
- The amount and term of your insurance policy
- Your age and gender
- Your health status
- If you smoke
The price varies depending on the other related coverages you have.
For example, here is a table that uses three different profiles of insureds, with prices from one insurer.
Profiles: Men
Cost of monthly premium
Person 1, 29, non-smoking, professional
$100,000 critical illness coverage over 20 years
As little as $28
Person 2
55, non-smoking, office worker
$100,000 critical illness coverage over 10 years
As little as $130
Person 3, 45, smoker, manual worker
$100,000 critical illness coverage over 10 years
As little as $101
T25: term insurance 25 years
Person 1, 29, non-smoking, professional
$100,000 critical illness coverage over 20 years
Cost of monthly premium
As little as $28
Cost of monthly premium
As little as $130
Person 3, 45, smoker, manual worker
$100,000 critical illness coverage over 10 years
Cost of monthly premium
As little as $101
T25: term insurance 25 years
Profiles: Women
Cost of monthly premium
Person 1, 29, non-smoking, professional
$100,000 critical illness coverage over 20 years
As little as $28
As little as $121
T25: term insurance 25 years
Person 1, 29, non-smoking, professional
$100,000 critical illness coverage over 20 years
Cost of monthly premium
As little as $28
Person 2
55, non-smoking, office worker
$100,000 critical illness coverage over 10 years
Cost of monthly premium
As little as $121
Person 3, 45, smoker, manual worker
$100,000 critical illness coverage over 10 years
Cost of monthly premium
As little as $96
T25: term insurance 25 years
What are the main benefits of my critical illness policy?
- Option to receive a premium refund after a predetermined period in the policy if no benefit has been paid
- Access to integrated counselling services for you and your family during a health crisis
- Versatility and flexibility based on your personal or family needs
- Multiple optional coverages and built-in options for your customized needs
- Non-taxable benefit
What are the most common exclusions related to my contract?
The CI policy details your coverage, and it is these definitions that allow the insurer to accept or reject your claim. So it’s very important for you to read the policy carefully to make sure it fits your needs. Your broker can also answer any questions you may have.
However, the following exclusions are found in most critical illness policies:
- No claim will be accepted in the event of a diagnosis or signs or symptoms occurring within the first 90 days after your insurance is issued
- No benefits will be paid in the event of the insured’s suicide, or an intentionally self-inflicted injury: your insurance never covers these situations
Compare critical illness insurance quotes
It is important to take the time to shop around so that you get the best value for your money and your needs.
When shopping for insurance, do not shop with multiple insurance brokers; the price of an insurance product is the same for all brokers. However, if you want to compare the prices of different insurers, an independent broker (like us!) will be able to help you.
We invite you to discuss critical illness insurance with your advisor. Your contact will be able to assess your situation and present you with the options of the various insurers, taking into account their specific circumstances and yours.
