Understanding your options

Critical illness insurance

Critical illness insurance pays a tax-free lump sum if you're diagnosed with a covered, serious condition — so you can focus on recovery instead of finances.

By Trevor Perron, Independent Insurance Advisor · Serving Manitoba & Ontario

How it works

It covers a defined list of serious conditions — commonly cancer, heart attack, stroke, and organ transplant. On diagnosis and after any survival period, it pays a one-time lump sum you can use for anything: medical treatment, time off work, debt, or daily living expenses.

How it differs from life insurance

Life insurance pays on death; critical illness pays while you're alive, addressing the financial impact of surviving a serious illness. The two complement each other.

Common features

• Flexible use of the benefit;
• Optional riders, such as return of premium if no claim is made;
• Premiums based on age, health, coverage amount, and conditions covered.

Before you buy, check

• Which conditions are covered;
• Any survival or waiting periods;
• Exclusions and limitations.

It's a strong supplement to life and disability coverage for protecting against the cost of a serious diagnosis.