Unraveling the Layers of Critical Illness Insurance

Did a parent, sibling or close friend in Kitchener-Waterloo just get a cancer or heart diagnosis? Many people only think about critical illness insurance after it touches someone they love. OHIP covers your hospital care, but not your mortgage, your lost pay, or a partner taking time off. This guide shows how to close that gap in Ontario.

When it comes to planning for the future, one aspect that often gets overlooked is safeguarding your health against unexpected twists and turns. Critical Illness Insurance is a powerful financial tool that provides a safety net in the face of severe health challenges. At Life Advice Insurance Inc, we believe in empowering our clients with knowledge, and in this blog post, we delve into the intricacies of Critical Illness Insurance – what it is, what's included in coverage, the types of illnesses covered, and the waiting times before eligibility for a claim.

What is Critical Illness Insurance?

Critical Illness Insurance is a form of coverage that provides a lump-sum payment to the policyholder upon diagnosis of a covered critical illness. This financial support is designed to alleviate the strain on individuals and families facing significant health challenges, allowing them to focus on recovery rather than financial worries.

What's Included in Coverage?

Critical Illness Insurance typically covers a range of serious illnesses, providing financial support during challenging times. The covered illnesses often include, but are not limited to:

• Cancer: Various forms and stages of cancer are usually covered, offering support for medical expenses, treatments, and additional costs associated with the illness.

• Heart Attack: Coverage extends to heart attacks, ensuring financial assistance for medical treatments and rehabilitation.

• Stroke: A critical illness insurance policy may provide financial support if you suffer a stroke, helping with medical expenses and necessary lifestyle adjustments.

• Organ Transplant: The costs associated with organ transplants, including surgery and post-transplant care, may be covered.

• Major Organ Failure: Critical illnesses leading to major organ failure often fall under the coverage, with payouts to help with medical bills and lifestyle adjustments.

Types of Illnesses Covered and Waiting Times

Different Critical Illness Insurance policies may have variations in the types of illnesses covered and waiting periods before a claim is eligible. It's crucial to review the terms of your policy, but common waiting periods include:

30-Day Survival Period: Most policies pay the benefit only if you live a set number of days after diagnosis, often 30 days. Check the policy wording for the exact terms.

90-Day Waiting Period: Some policies do not cover certain illnesses, such as some cancers, if they are found in the first 90 days after the policy starts.

Understanding these waiting periods is vital when considering a Critical Illness Insurance policy, as it influences the timing of potential claims.

At Life Advice Insurance Inc, we offer comprehensive Critical Illness Insurance options tailored to your unique needs. For more information or to discuss your options, feel free to reach out to us:

What OHIP and EI do not cover

In Ontario, OHIP pays for many doctor visits and hospital stays, for example at Grand River Hospital or St. Mary's General Hospital. But it does not replace your income. It also does not pay your rent or mortgage, childcare, or a spouse's time off work to care for you.

EI sickness benefits pay up to 26 weeks at 55% of your insurable earnings (up to $729 a week in 2026). Recovery from a serious illness can take longer, and 55% may not cover your bills. Critical illness insurance pays a one-time, tax-free lump sum that you can use for anything.

Example: Imagine a 42-year-old in Waterloo diagnosed with a covered cancer. EI pays part of her income for a few months. Her lump sum covers the mortgage, parking and travel to treatment, and lets her husband take unpaid leave.

How much to buy and what it costs

• Start with how many months of bills you want covered while you recover.
• Add extra for costs OHIP does not pay, such as some medications, therapy, parking or home changes.
• Many plans cost about $10 to $40 a month. A healthy 35-year-old non-smoker may pay about $9 to $15 a month for $25,000.
• Price depends on age, smoking, health, the amount, and how long the policy lasts.
• Ask about options such as return of premium, which may refund premiums if you never use the policy.

Your first steps

1. Check your workplace benefits. Some plans include a small critical illness benefit, and most end when you leave the job.
2. Write down your monthly costs: housing, debts, childcare and car.
3. Note your family history. Insurers ask about parents and siblings with cancer, heart disease or stroke.
4. Decide how long you want coverage: 10 years, 20 years, to age 75, or for life.
5. Compare quotes from several insurers. The list of covered illnesses and the policy wording differ.
6. Apply while you are healthy. A new diagnosis can make coverage harder to get.

For families in Kitchener-Waterloo and across Ontario

Life Advice Insurance Inc. is an independent broker serving families since 2015. We compare critical illness plans from 20+ Canadian insurers, including Manulife, Sun Life, Canada Life and Desjardins. We help families in Kitchener, Waterloo, Cambridge, Guelph, Brampton, Mississauga, Toronto and all of Ontario. Our office is at 912 Isaiah Pl, Kitchener, ON N2E 0B6. We are open Monday to Saturday, 9 a.m. to 9 p.m. (closed Sunday). Call 1-855-500-5041.

Frequently asked questions

Can I get critical illness insurance if my parent had cancer?

Often, yes. Insurers ask about family history, and it may affect the price or which illnesses are covered. Results differ by insurer, so comparing several is important.

Is the critical illness benefit taxable in Canada?

For a personal policy you pay for yourself, the lump sum is generally paid tax-free. Ask about your own situation if a business pays the premiums.

I have EI and work benefits. Do I still need it?

Maybe. EI sickness pays up to 26 weeks at 55% of insurable earnings, and work coverage usually ends if you leave your job. Critical illness insurance is yours and pays a lump sum you can use for anything.

Get a free quote

Compare critical illness insurance quotes from 20+ Canadian insurers on our critical illness insurance page. You may also like our term life insurance page. Or visit Life Advice Insurance Inc. at 912 Isaiah Pl, Kitchener, call 1-855-500-5041, Monday to Saturday, 9 a.m. to 9 p.m. Help in English, Hindi and Punjabi.