A GUIDE TO CRITICAL ILLNESS INSURANCE
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Is critical illness insurance right for you?
When deciding if critical illness coverage is worth purchasing, it is helpful to consider how
it differs from other kinds of insurance policies you may already own.
Unlike life insurance benefits which are paid upon your death, critical illness insurance
is a living benefit, which means the claim is made while you are alive and benefits are
paid out to you or a person you name – a beneficiary. And while they may be used to
supplement disability insurance benefits, critical illness benefits are not related to your
absence from work; instead they are related to a medical condition you have been
diagnosed with. How you use the payment from a critical illness claim is up to you.
For example, suppose the person insured under a critical illness policy were diagnosed
with a covered terminal form of cancer. Supported by their doctor's diagnosis and
medical evidence, the insured person could make a claim on their policy and use the
lump sum to help fulfil financial obligations for a family member or to start a college fund
for their children.
CRITICAL ILLNESS
INSURANCE POLICIES
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Tip: Some critical illness insurance policies allow benefits to be paid to your estate
if you die after a period of time (see details about exclusion periods in section 4). In
addition, some provinces allow your benefits to be paid to a person you name - a
designated beneficiary.
