Critical Illness Insurance

Critical Illness Insurance is designed to provide you with an incredible “financial security blanket” in the form of a lump sum payment paid to you by an Insurer if you suffer from one of the covered critical illnesses and the survival period is satisfied according to the definitions of your chosen insurance policy. Facing a critical illness can be one of the most difficult challenges in your life! The physical and emotional strain of such an illness can be severe, but then when you couple that with the potentially damaging financial impact, the end result can be devastating!

A Critical Illness can happen to anyone:

  • It is estimated that there are over 70,000 Heart Attacks in Canada each year
  • There are between 40,000 and 50,000 Strokes in Canada each year
  • An estimated 3,075 Canadians will be diagnosed with Cancer every week – that is 159,900 Canadians in a year!
  • Approximately 67% of all Critical Illness Insurance claims paid are for Cancer!
  • 46% of Critical Illness claims are made by women with an average age of 49
  • 54% of Critical Illness claims are made by men with an average age of 54


Critical Illness Insurance

Arrange to “own” your personal/individual Critical Illness Insurance plan! The original reason that Critical Illness Insurance was designed still holds true today – to assist individuals financially who have been recently diagnosed and survive a critical illness. Today, all Critical Illness insurance policies provide a lump sum benefit to use in any manner you choose. For instance you may choose to use your money to:

Reduce your financial burden by:

  • Paying off or reducing your mortgage, credit cards or other debts.
  • Help keep your business running.
  • Continue contributing towards your retirement as opposed to having to go into debt or withdraw money from your retirement savings that would lead to a diminished retirement plan.
  • Ensure that your families’ current standard of living is not interrupted.

Maintain your independence by:

  • Paying for the modification to your home or vehicle to improve your mobility.
  • Allowing you to hire domestic help or private nursing to assist you during your recovery.
  • Allowing you to pay for child care while you are recovering.

Access cutting-edge medical services:

  • While in Canada, it will assist you to pay for medications and treatments that are not covered by your provincial health care plan.
  • Should you decided to seek out treatment outside of Canada, it will assist in not only paying for the treatments but will also pay for your family’s travel and lodging expenses while they accompany you.

Assist in your recovery any way you choose:

  • You may choose to delay return to work to spend more time with your family!
  • Perhaps that long family vacation will allow you to all build many happy memories while you focus on getting well!

Who Should Purchase Critical Illness Insurance?

Critical Illness Insurance will be of huge value to you if you are between the ages of 18 and 65 and:
  • You are concerned about the impact a Critical Illness could have on your family’s finances
  • You or your family wishes to complement existing individual income protection plans
  • Your health or income precludes you from qualifying for individual income protection
  • You or your family wishes to complement existing group or association disability insurance plan.

What Illnesses or Injuries does Critical Illness Insurance Cover?

All Critical Illness Insurance plans will pay a lump sum benefit, even if you recover fully or do not suffer a loss of income or reduced ability to work, in the event that you meet the policy definition of any of the critical illnesses that are covered on the plan you choose. For most conditions, your benefit will be paid to you after a 30-day survival period. Conditions covered can vary from one plan to another, but in general you can expect to see the following conditions covered:

Critical Illness Insurance

Aortic Surgery
Aplastic Anemia
Bacterial Meningitis
Benign Brain Tumor
Cancer – life threatening
Coronary Angioplasty
Coronary Artery Bypass

Dementia including
Alzheimer’s Disease
Early Breast Cancer
Early Prostate Cancer
Early Skin Cancer
Early Stage
Blood Cancer
Heart Attack

Heart Valve Replacement
Kidney Failure
Loss of Independent Existence
Loss of Limbs
Loss of Speech
Major Organ Failure
Major Organ Transplant

Motor Neuron Disease
Multiple Sclerosis
Occupational HIV infection
Parkinson’s Disease
& Specified Atypical Parkinsonian Disorders
Severe Burns

It is important to note that Covered Conditions will vary from one Insurer to another!
Critical Illness Insurance

Why is Critical Illness Insurance so Special?

Because it is what I refer to as the “Triple Win Insurance Policy”!!

If you suffer one of the covered Critical Conditions identified in your policy, you will receive the lump sum benefit you purchased! Obviously, this is the main reason you bought your policy – to provide you with a “living benefit” in a time that you require financial security.


If you pass away either due to any natural causes such as an accident or you do not survive the diagnosis of your Critical Illness for the 30 days, 100% of the premiums that you have paid into your policy will be paid to your beneficiary or your estate!

If your Policy Expiration date has arrived (usually age 65 or 75) and you have made no claim on your policy, then up to 100% of the premiums paid into your policy are returned to you! Just add this new income to your retirement!

Critical Illness Insurance

When I receive my Critical Illness Insurance Benefit, will it be Taxable or Non-Taxable?

When you personally purchase your Critical Illness Insurance policy and structure it as you being both the Owner and the Insured and make the premium payments with your after-tax dollars, the following tax implications will occur:

  • Premiums area a NON-DEDUCTIBLE personal living expense
  • Benefits received from either a Critical Illness claim or the Return of Premium are NON-TAXABLE
  • Death Benefit Return of Premiums received by the Owner’s estate will be subject to Probate taxes

At Health Risk we believe that Critical Illness Insurance may be one of the most valuable insurance policies you will ever own as it is built to protect YOU when you need it – a Living Benefit! These plans are not designed to replace either your Life Insurance or your Disability Insurance but rather, are designed to complement and enhance your current insurance portfolio.

Since most Canadian Insurers provide many different types of Critical Illness programs, it can be a long and difficult challenge to sort thru the various plans and their options in order to determine what plan suits you! At Health Risk, we have many years of experience in working with Critical Illness Insurance and assisting our clients to choose the programs that they desire….we would be very pleased to assist you as well!

DISCLAIMER: Please be advised that the information on this web site is intended to present a broad variety of general information as simply and accurately for your knowledge as we possibly can. In no event does this information form part of or apply as a legal document. Therefore, please note that rules, conditions and industry practices discussed may be changed over time.

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