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Lowest starting price. Renews at a higher price at the end of each term.
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How Much Critical Illness Insurance Do I Need?
A serious illness usually means time off work plus costs that public health care doesn't pay. Enter your numbers.
A guide only, rounded to the nearest $25,000. Your advisor will look at your full situation, including group benefits and disability coverage.
How it works
How Critical Illness Insurance Pays
- Diagnosis: you are diagnosed with a covered condition that meets the policy's definition.
- Survival period: you survive the waiting period, usually 30 days after diagnosis (or surgery).
- Lump sum: the insurer pays the full amount at once. For a personally owned policy it is generally tax-free.
- Your choice: spend it on anything: mortgage, bills, private treatment, travel for care, or a family member taking time off.
- 90-day cancer exclusion: most plans don't pay for cancer found or investigated in the first 90 days of coverage.
- Income doesn't matter at claim time: the benefit is based on the diagnosis, not on proving lost income.
Why it matters
Provincial health care pays for hospital and doctor care, but not your mortgage, your lost income, or a spouse's time off. The Canadian Cancer Society says 2 in 5 Canadians are expected to be diagnosed with cancer in their lifetime.
Critical illness vs life vs disability
Life insurance pays your family when you die. Disability insurance pays monthly if you can't work. Critical illness pays you a lump sum when you're diagnosed, even if you go back to work.
Life insuranceWhat's covered
Conditions Commonly Covered
Basic plans cover cancer, heart attack and stroke. Comprehensive plans cover around 25 conditions like these. Definitions differ by insurer; the policy wording decides.
- Cancer (life-threatening)
- Heart attack
- Stroke
- Coronary artery bypass surgery
- Aortic surgery
- Heart valve replacement
- Kidney failure
- Major organ transplant
- Major organ failure (on a waiting list)
- Multiple sclerosis
- Parkinson's disease
- Alzheimer's disease
- Motor neuron disease (ALS)
- Benign brain tumour
- Bacterial meningitis
- Paralysis
- Loss of limbs
- Blindness
- Deafness
- Loss of speech
- Coma
- Severe burns
- Aplastic anaemia
- Loss of independent existence
Some plans also pay a partial benefit for certain early-stage conditions. Non-life-threatening cancers (such as some skin and early prostate cancers) are usually excluded.
Choose your plan
Types of Critical Illness Plans
Cover through your working years and early retirement
Term to 75
Level price until age 75.
Lifetime protection
Term to 100 (permanent)
Level price for life; highest starting cost.
People who want their money back if they stay healthy
Return of premium rider
Get eligible premiums back if you never claim (on surrender, expiry or death, depending on the rider and years held).
Common questions
Critical Illness Insurance: FAQs
What is critical illness insurance?
Critical illness insurance pays you a one-time, lump-sum amount if you are diagnosed with a covered condition, such as life-threatening cancer, a heart attack or a stroke, and survive the waiting period (usually 30 days). You can use the money for anything: bills, treatment, travel, a mortgage or time off work.
Is the critical illness benefit taxable in Canada?
For a personally owned policy, the lump-sum benefit is generally received tax-free. Critical illness insurance isn't specifically addressed in the Income Tax Act, so the treatment could change if the law changes. Business-owned policies have different rules; ask us.
How much critical illness insurance do I need?
A common starting point is at least one year of income or one year of household expenses, whichever is higher, plus extra costs such as treatment, travel and home care. Use the calculator on this page to see your number.
What conditions does critical illness insurance cover?
Basic plans cover the three most common claims: life-threatening cancer, heart attack and stroke. Comprehensive plans cover around 25 conditions, including bypass surgery, kidney failure, MS, Parkinson's and Alzheimer's. Some plans also pay a smaller benefit for certain early-stage conditions.
What is the 90-day cancer exclusion?
Most plans don't pay for cancer if signs, symptoms, tests or a diagnosis happen in the first 90 days of coverage. Other covered conditions are not affected.
What is the survival period?
The insured person must usually survive 30 days after the diagnosis (or after the surgery, for surgical conditions) before the benefit is paid.
Can I get my premiums back?
Yes, with a return of premium rider. Depending on the rider, eligible premiums are returned if you cancel after a set number of years, when the policy expires, or on death without a claim. The rider adds to the price.
What is the difference between critical illness, life and disability insurance?
Life insurance pays your family when you die. Disability insurance replaces part of your income monthly if you can't work. Critical illness insurance pays you a lump sum when you're diagnosed with a covered illness, whether or not you can still work.
Does critical illness insurance need a medical exam?
It depends on your age, the coverage amount and the insurer. Smaller amounts may only need health questions; larger amounts may need a nurse visit or tests. We help you through the application.
Sources
Where These Facts Come From
- Canadian Cancer Society: Cancer statistics
- BMO Insurance: Understanding critical illness insurance
- Sun Life: Critical illness guide to definitions
Last reviewed October 17, 2026 by Pankaj Bhatia, PFA, CHS. General information only; coverage, definitions, exclusions and prices differ by insurer and are set out in each policy. More: Life insurance · Term life insurance · Investments
Protect your income before you need to
Critical illness insurance is easiest and cheapest to get while you're healthy. Compare plans from Canadian insurers with a licensed advisor.