Critical illness is a stressful event for an individual and can disturb your financial balance manifold. Critical Illness Insurance can help you pay-off such financial overheads in life-altering illness. If you are insured under Critical Illness Insurance and the policy covers for the associated illness, you receive a lump-sum amount in cash to pay for the expenses.  It can also be claimed under the circumstances where you have already paid for the expenses, the amount hence received can be used to recover the loss of income. Critical Illness covers for a variety of illnesses and accidents like: Heart Attacks, Strokes, Cancer, physical disabilities, Alzheimer’s disease, etc.

What does it cover for?

Critical Illness Insurance also covers the cost if you have to travel out of the country for treatment. Statistics say it all; anyone can face such life-changing event.  According to statistics, on an average over 70,000 Canadians go through heart attacks and between 40,000 to 50,000 strokes every year. Also over 3000 people are diagnosed with cancer every week in Canada. These are some shocking statistics and hence critical illness insurance is recommended to all.

What types of illnesses are covered by critical illness insurance?

While you choose a policy you should know the various diseases it covers for. Typically four kinds of diseases are covered in most of Critical Illness Insurance products:  Cancer, Heart Attack, Strokes and Coronary Heart Bypass Surgery

There are various other diseases covered under the Critical Illness insurance but it depends on the policy you purchase. Other diseases that can be treated under critical illness are:

·         Alzheimer’s disease ·         Heart valve replacement
·         Kidney failure ·         Aplastic Anemia
·         Paralysis ·         Multiple Sclerosis
·         Parkinson’s disease ·         Loss of independent existence
·         Organ failure/transplant ·         Blindness
·         Motor Neuron ·         Deafness
·         Bacterial Meningitis ·         Severe Burns
·         Aortic surgery ·         Loss of Speech
·         Coma ·         Loss of Limbs
·         Benign brain tumor ·         Occupational HIV Infection


Type of Policies under Critical Illness Insurance:

Term based Policies: You can buy a policy for a term as per your needs. Various term options available are Term 10, Term 20, Term 65, Term 75 and Term 100. Mostly you get coverage till the age of 75 at max.

Return of Premiums: You also have an option to add Return of Premiums (ROP) option to your policy. If you claim all the premiums paid towards the policy, the coverage ends. If you go for a partial refund then the insured amount automatically reduces in accordance with the amount you claim. It is however advisable to seek the help of professional advisor at the time of buying the policy. ROP is mostly available for Term 65 and above only.

Special Cases:

No Claim made: Some companies pay back the premiums paid towards the policy in an event when the insured individual dies within the waiting period, due to a cause not covered by the policy. The amount is paid to the nominated beneficiary in the contract. In some products, the company pays back a portion of premium if the insurance in unclaimed till its maturity.

Full Recovery: You get a full coverage as long as you fulfill the waiting period mentioned in the policy. Even if the policy holder recovers fully, still he/she will get the entitled coverage in the policy.


Immediate Cash Payoff: The most obvious benefit is the immediate payout. Within 30days of diagnosis with a critical illness, insurance