Critical illness insurance has become an essential part of financial planning for many Canadians. With the rise in serious health conditions such as cancer, heart disease, and stroke, having the right insurance coverage can make a huge difference.
A critical illness diagnosis can result in loss of income, high medical bills, and ongoing treatment costs. The goal of critical illness insurance is to provide you with a lump sum payment to help cover these unexpected expenses, allowing you to focus on recovery.
In this blog post, we’ll explore the best critical illness insurance providers in Canada, comparing their coverage, benefits, pros and cons, and unique features to help you make an informed decision.
- Key takeaways:
- Many factors affect the choice of the best critical illness insurance company, including the number of covered conditions, coverage limits, and the simplicity of the underwriting process.
- Desjardins, Industrial Alliance, RBC Insurance, Canada Protection Plan, and Sun Life each stand out for different key strengths.
- Working with an insurance advisor helps you compare multiple providers, ensuring you get the best critical illness coverage and rates while offering guidance throughout the application process.
How Does Critical Illness Insurance Work?
What does critical illness insurance cover?
Critical illness insurance provides a tax-free lump sum payment if you’re diagnosed with a serious health condition covered by your policy. Conditions typically include:
- Life-threatening cancer
- Heart attack
- Stroke
- Coronary artery bypass surgery
- Kidney failure
- Major organ failure
- Multiple sclerosis
- Parkinson’s disease
The specific number of covered conditions varies by insurance provider, with some covering as many as 25 to 30 illnesses, while others may only cover the most common conditions, like the first three or four on the list above.
Who needs critical illness insurance coverage?
A critical illness insurance policy is a good fit for:
- Families with dependents: If you’re the primary breadwinner, your family relies on your income. A critical illness could result in lost income during recovery, making it difficult to maintain your family’s standard of living.
- Self-employed individuals: Without an employer’s health benefits package, you’re responsible for your own financial protection. Critical illness insurance can be crucial for self-employed individuals.
- High-income earners: Those with a high standard of living or significant financial commitments may want the additional peace of mind that critical illness coverage can provide.
- Children: Children need critical illness coverage because it provides financial support for families if a child is diagnosed with a covered condition, helping to pay for medical expenses, allow for a parent for time off work, and pay for specialized treatments not covered by your health insurance plan. It ensures parents can focus on their child’s recovery without the added financial stress.
How much critical illness insurance coverage do you need?
When determining how much coverage you need, consider:
- Income replacement: Ideally, your policy should cover at least one to two years of your salary. This will ensure you can continue to pay your bills, like rent or mortgage payments.
- Medical expenses: Costs like experimental treatments, rehabilitation, and private healthcare services may not be covered by your provincial health insurance plan.
- Out-of-country travel for treatment: A critical illness policy can help cover the significant costs of seeking specialized treatments abroad, including travel, accommodation, and paying medical expenses.
- Home modification for accessibility: After a serious illness, you may need to modify your home to accommodate mobility challenges, such as installing ramps, widening doorways, or adding stairlifts.
On average, Canadians buy between $50,000 and $250,000 of critical illness insurance coverage amount.
Is critical illness insurance worth it?
A critical illness insurance plan is often considered worth it if:
- You have dependents or large financial obligations like mortgage payments.
- You don’t have the emergency fund to protect yourself against high medical costs, especially for treatments, medications, or therapies not covered by provincial healthcare.
- You are self-employed or lack comprehensive employer benefits, making it crucial to have financial security in case of a critical illness.
- You have a lower risk tolerance and want the security of knowing that a covered illness diagnosis won’t lead to financial hardship.
However, for those with limited budgets or access to alternative financial support, the critical illness insurance rates could outweigh the potential benefits.
Should you get life insurance, critical illness insurance, or disability insurance?
Knowing when to get life, critical illness, and disability insurance is essential to ensure financial protection at the right stages of life.
- Life insurance is typically best to purchase when you have dependents who will suffer financially if you die, such as a spouse or children. It provides a safety net for your loved ones in the event of your death so that they can maintain their standard of living after your passing.
- Critical illness insurance is important to consider if you’re concerned about covering medical costs, lost income, or lifestyle adjustments after being diagnosed with a covered illness. It’s especially valuable if you are the primary income earner or don’t have workplace coverage.
- Disability insurance should be acquired when your income is essential to maintaining your lifestyle. If you become unable to work due to injury or illness, disability insurance replaces a portion of your income. This makes it crucial for anyone who relies on their paycheck, particularly self-employed individuals or those without employer-provided coverage.
Best Critical Illness Coverage
Before diving into our list of the best critical illness insurance companies, let’s first examine the criteria used to evaluate them.
How to choose the best critical illness insurance policy
When selecting a critical illness insurance policy, it’s important to compare products based on key factors to ensure you get the coverage that best fits your needs. Here are some of the most important factors to consider:
1. Number of illnesses covered
The number of illnesses covered by a policy varies significantly between providers. Some policies cover as few as three or four conditions, while more comprehensive plans may cover 26 critical illnesses. The broader the coverage, the better protection you’ll have for a variety of health risks, so be sure to check the list of covered conditions and whether early-stage illnesses are included.
2. Coverage amounts
The minimum and maximum coverage amounts offered by each insurer determine the lump sum payout you’d receive in the event of the diagnosis of a covered critical illness. Some companies provide flexibility with lower minimums, which may be ideal for basic coverage needs, while others offer higher maximums that can help cover substantial medical expenses or ongoing financial obligations. Assess your personal financial situation to determine how much coverage is necessary.
3. Age eligibility
Age eligibility refers to the age range in which you can apply for and maintain your policy. Typically, insurers offer critical illness coverage up to a certain age, such as 65, but some products have more flexibility and extended coverage periods. Ensure the policy you’re considering aligns with your life stage and long-term planning needs.
4. Term lengths
Insurance providers usually offer different plan types based on term lengths. The most common are term-10, term-20, and term-75, where the coverage lasts for a specified period or until a certain age. Term-10 and term-20 policies may offer lower premiums for shorter periods, while term-75 or permanent policies provide lifetime coverage. Choosing the right term length depends on your financial goals and how long you anticipate needing coverage.
5. Guaranteed premiums
A policy with guaranteed premiums means the premiums are locked in and will not increase based on claims experience. This is an important feature to look for, as non-guaranteed premiums may rise unexpectedly, leading to higher critical illness insurance rates in the long term. Guaranteed premiums provide stability and predictability, allowing you to budget for the future with greater confidence.
While these are some of the most important factors to consider when comparing critical illness insurance companies, there are other minor elements to take into account, such as optional riders, customer service reputation, and value-added services.
Furthermore, some products have unique features that are not found in others, such as multi-condition payouts or return of premium options. Therefore, a thorough, in-depth analysis of each policy is crucial for making an informed decision.
Which is the best critical illness insurance company in Canada?
Here’s a breakdown of the top critical illness insurance providers in Canada, each with its own strengths and unique features. Below are the pros and cons of the top companies to help you decide which one may be best for your needs:
Best all-around: Desjardins
Desjardins is the best all-around company for critical illness insurance due to its broad coverage of 26 conditions, extensive partial benefit options, and the highest coverage limits available, providing comprehensive protection and financial security.
- Pros:
- Covers 26 conditions for full payout, providing the broadest protection available in the market.
- Provides partial benefits for the largest number of non-life-threatening conditions.
- Offers coverage amounts up to $3,000,000, providing greater financial security for high-net-worth individuals.
- Cons:
- Stringent underwriting could mean you may not qualify, or you could face a rating, leading to higher premiums.
- Some childhood illnesses require an additional rider, which adds to the cost.
Best for flexibility: Industrial Alliance
Industrial Alliance is the best company for choices in critical illness insurance because it offers a wide range of term lengths, optional riders like return of premium, and flexible, affordable plans, including simplified underwriting options for faster approval.
- Pros:
- Offers a wide variety of term lengths like term-10, term-20, term-25, term-75, and term-100, allowing for flexible coverage options.
- Has a broad selection of optional riders, including return of premium (ROP), where you can get your money back if no claim is made.
- Includes more affordable critical illness plans covering only cancer or cancer plus a few core conditions, such as heart attack, stroke, and coronary artery bypass surgery.
- Offers simplified underwriting plans, which involve quicker and easier approval processes.
- Has an option to automatically reduce the coverage amount over time, which helps lower the premium cost.
- Cons:
- The adult critical illness insurance plan covers 25 illnesses, missing coverage for acquired brain injury, which is covered by other insurers.
- Simplified underwriting plans don’t have guaranteed premiums, so rates could increase over time.
- Its medically underwritten plan follows the same strict requirements as Desjardins and other fully underwritten policies, making it more difficult to qualify for or potentially leading to higher premiums if you have pre-existing medical conditions.
Best for unique features: RBC Insurance
RBC Insurance stands out for its unique features, such as the option to convert your policy into long-term care insurance and the Scheduled Increase Benefit (SIB) rider, which helps your coverage keep pace with inflation without additional medical underwriting. These are features that not many other insurers provide.
- Pros:
- Has a unique option to convert your policy into long-term care insurance, providing monthly benefits to cover care facility or in-home caregiving costs.
- Offers the Scheduled Increase Benefit rider, which increases your coverage every few years, all without undergoing any medical exam or answering medical questions.
- Cons:
- Some critical illness insurance plans don’t have guaranteed premiums, meaning the price may increase each year.
- All covered illnesses require at least a 30-day survival or waiting period, while competitors usually apply this only to cardiovascular diseases.
- Only offers the return of premium on death rider; no return of premium on cancellation or expiry.
Best for simplified underwriting: Canada Protection Plan
Canada Protection Plan is the best choice for simplified underwriting because it eliminates the 24/24 pre-existing condition clause, allowing those with recent treatments to obtain coverage without restrictions. This flexibility, combined with options for cancer and cardiac coverage, makes it accessible for individuals with varied health histories.
- Pros:
- Simplified underwriting requires no medical exam or doctor's reports, just a few questions about pre-existing conditions, allowing you to get coverage much faster.
- Does not have a 24/24 pre-existing condition clause, allowing claims even if you were treated for a pre-existing condition in the 24 months before purchase.
- Offers flexible coverage options for cancer, cardiac conditions, or both, meaning if you have a history of one, you can still buy coverage for the other.
- Cons:
- Does not cover as many conditions as other simplified underwriting plans.
- Coverage limits on some plans are capped at $50,000, which may not provide enough financial protection.
- Lacks partial benefits for less severe illnesses, unlike its competitors.
Best for return of premium: Sun Life
Sun Life is the best company for return of premium riders in critical illness insurance, offering a variety of options, including return of premium on death, expiry, and cancellation, allowing policyholders to recover some or all of their premiums if they don’t make a claim. Furthermore, it is a robust all-around plan, covering 26 illnesses and offering coverage of up to $3,000,000.
- Pros:
- Offers multiple return of premium (ROP) options, including ROP on death, expiry, and cancellation.
- ROP on cancellation allows you to get part of your premiums back as early as year 3, which is much earlier than other insurers.
- Also a solid all-around option, covering 26 conditions and offering benefits of up to $3,000,000.
- Provides several limited-pay options for Term-75 and Term-100, allowing you to pay off your premiums sooner.
- Cons:
- Does not offer a Term-20 option, which is a popular choice for individuals in their 30s and 40s.
- Stringent underwriting could lead to higher premiums or the inability to qualify for coverage.
Each of these providers has distinct advantages, making it easier to find a policy that aligns with your specific needs, whether you prioritize flexibility, high coverage, or unique features like long-term care conversion or return of premium options.
Comparing Critical Illness Insurance Companies
Ready to find your perfect match? Let’s dive into a side-by-side comparison of Canadian insurance companies, focusing on key features that matter most to you.
1. Number of covered conditions
Canada Life, Desjardins, Equitable Life, and Sun Life offer the most comprehensive coverage in terms of the number of covered conditions for adults with 26, making them a strong contender for those seeking broad protection.
For childhood critical illness plans, Humania’s Children360 plan has the most extensive coverage with 33 conditions covered. In the table below, some of the insurance companies are blank because they do not offer a childhood plan.
Company | Number of conditions covered for adults | Number of conditions covered for children |
|---|---|---|
Assumption Life | 16 | |
Beneva | 3 or 25 | 28 |
BMO Insurance | 25 | |
Canada Life | 25 or 26 | 26 |
Canada Protection Plan | 3, 5, or 8 | |
Desjardins | 26 | 29 or 32 |
Edge Benefits | 25 | |
Empire Life | 4 or 25 | 15 |
Equitable Life | 26 | 31 |
Foresters | 4 or 25 | |
Humania | 1, 4, 6, 23, 24, or 25 | 1, 4, 6, 23, 24, 25, or 33 |
Industrial Alliance | 1, 4, 6, or 25 | 9, 11, or 30 |
ivari | 4 or 25 | 9 or 30 |
Manulife | 5 or 25 | 15 |
RBC Insurance | 3 or 25 | |
Sun Life | 1, 3, 7, or 26 | 31 |
TD Insurance | 3 | |
UV Insurance | 25 | 32 |
Notes:
- Unlike other insurers, Empire Life and Manulife don’t provide standalone childhood critical illness insurance plans. It’s available as a rider when you purchase an adult critical illness plan.
- As the table shows, several insurance providers offer various critical illness insurance plans, each covering a different number of conditions. This is indicated by the use of ‘or’. Typically, the more conditions covered, the higher the cost.
2. Coverage amounts
For those seeking the largest critical illness insurance payout, Canada Life, Desjardins, Industrial Alliance, and Sun Life are top choices. By offering up to $3,000,000 in lump sum benefit amount, these insurers offer the highest coverage limits available in the market, making them ideal for high-net-worth individuals who want substantial financial protection in case of a critical illness.
On the other hand, simplified issue plans, typically offered by other insurers like Assumption Life, Canada Protection Plan, and Edge Benefits, often have lower coverage limits, like $100,000. These critical illness insurance plans are designed to be more accessible, with a simpler application process that doesn’t require a medical exam or doctor’s report. This makes them a good option for individuals who may not qualify for traditional underwriting or who prefer a quicker application process.
Company | Minimum and maximum coverage amounts for adults | Minimum and maximum coverage amounts for children |
|---|---|---|
Assumption Life | $10,000 to $100,000 | |
Beneva | $25,000 to $2,000,000 | $25,000 to $250,000 |
BMO Insurance | $25,000 to $2,000,000 | |
Canada Life | $10,000 to $3,000,000 | $10,000 to $500,000 |
Canada Protection Plan | $10,000 to $100,000 | |
Desjardins | $10,000 to $3,000,000 | $10,000 to $1,000,000 |
Edge Benefits | $5,000 to $125,000 | |
Empire Life | $25,000 to $2,000,000 | $1,000 to $50,000 |
Equitable Life | $10,000 to $2,000,000 | $10,000 to $500,000 |
Foresters | $25,000 to $2,000,000 | |
Humania | $5,000 to $1,000,000 | $5,000 to $1,000,000 |
Industrial Alliance | $5,000 to $3,000,000 | $5,000 to $500,000 |
ivari | $25,000 to $2,000,000 | $25,000 to $250,000 |
Manulife | $25,000 to $2,000,000 | $5,000 to $100,000 |
RBC Insurance | $10,000 to $2,000,000 | |
Sun Life | $25,000 to $3,000,000 | $25,000 to $1,000,000 |
TD Insurance | $10,000 to $100,000 | |
UV Insurance | $10,000 to $2,000,000 | $25,000 to $250,000 |
3. Age eligibility
Most companies offer coverage starting from age 0 to 65, although some critical illness insurance plans are exclusively for adults, available from age 18.
Most term-10, term-20, and term-75 policies expire at age 75. An expiry age of 100 doesn’t mean your coverage ends once you reach that age—rather, it indicates that premium payments will no longer be required, but your coverage will continue for life until you pass away.
Company | Eligible age to purchase | Age at expiry |
|---|---|---|
Assumption Life | 18-60 | 75 |
Beneva | 0-65 | 75 or 100 |
BMO Insurance | 18-65 | 75 or 100 |
Canada Life | 0-65 | 75 or 100 |
Canada Protection Plan | 18-65 | |
Desjardins | 0-65 | 65, 75, or 100 |
Edge Benefits | 18-64 | 70 |
Empire Life | 18-65 | 75 or 100 |
Equitable Life | 0-65 | 75 or 100 |
Foresters | 18-65 | 80 |
Humania | 0-65 | 75, 90, or 100 |
Industrial Alliance | 0-65 | 75 or 100 |
ivari | 0-65 | 65 or 75 |
Manulife | 18-65 | 65, 75, or 100 |
RBC Insurance | 18-65 | 65 or 75 |
Sun Life | 0-65 | 70, 75, or 100 |
TD Insurance | 18-54 | 70 |
UV Insurance | 0-65 | 25, 35, 45, 55, 65, or 75 |
4. Term lengths and guaranteed premiums
Term-10 offers the lowest initial cost, but premiums increase every 10 years. With Term-20, you lock in your premium for 20 years, though the initial rate is higher than Term-10. Term-65 and Term-75 provide guaranteed level premiums until you reach those ages, offering predictable costs for a longer period.
Term-100 is usually the most expensive option but guarantees level premiums until age 100, providing lifetime coverage at a fixed rate. Some companies also offer a 20-pay term-100, allowing you to fully pay off the policy in 20 years, though it’s more expensive than spreading payments to age 100.
The more term length options a company offers, the better flexibility you have. However, not all companies offer guaranteed premiums—some are subject to increase if the company faces higher-than-expected claims, which can create uncertainty as your critical illness insurance cost may rise each year.
Company | Term lengths available | Guaranteed premiums |
|---|---|---|
Assumption Life | Term-15, Term-20, Term-25, Term-75, Term-75 20-pay | Yes |
Beneva | Term-10, Term-20, Term-75, Term-100, Term-100 20-pay | Yes |
BMO Insurance | Term-10, Term-20, Term-75, Term-100, Term-100 15-pay | Yes |
Canada Life | Term-10, Term-20, Term-75, Term-75 20-pay, Term-100, Term-100 15-pay, Term-100 20-pay | Yes |
Canada Protection Plan | Term-20, Term-75 | For the first 5 years |
Desjardins | Term-10, Term-20, Term-65, Term-75, Term-100, Term-100 10-pay, Term-100 20-pay | Yes |
Edge Benefits | Term-5 | No |
Empire Life | Term-10, Term-20, Term-75, Term-100 15-pay | Yes |
Equitable Life | Term-10, Term-75, Term-75 20-pay, Term-100, Term-100 20-pay | Yes |
Foresters | Term-10, Term-20, Term-80 | Yes |
Humania | Term-10, Term-15, Term-20, Term-25, Term-30, Term-75, Term-100, Term-100 20-pay, Term-100 pay to age 65 | Yes |
Industrial Alliance | Term-10, Term-20, Term-25, Term-75, Term-100, Term-100 10-pay, Term-100 20-pay | Only for some plans |
ivari | Term-10, Term-20, Term-65 | Yes |
Manulife | Term-5, Term-10, Term-20, Term-65, Term-75, Term-100, Term-100 15-pay | Only for some plans |
RBC Insurance | Term-10, Term-65, Term-75 | Only for some plans |
Sun Life | Term-10, Term-70, Term-75, Term-75 15-pay, Term-100, Term-100 10-pay, Term-100 15-pay | Only for some plans |
TD Insurance | Term-10 | No |
UV Insurance | Term-20, Term-25, Term-35, Term-45, Term-55, Term-65, Term-75 | Yes |
Notes:
- UV Insurance’s term options differ from others, as their term-25, term-35, term-45, and term-55 plans provide coverage until you reach that specific age, rather than for a set number of years.
- Foresters is the only insurance company that has a term-80 product. Most other providers terminate their critical illness insurance plan at age 75.
5. Partial benefit payment
Most insurance companies offer partial payouts if you’re diagnosed with a non-life-threatening condition, such as coronary angioplasty or an early-stage cancer. The more conditions covered, the better the protection. Desjardins leads the way with 19 illnesses covered for partial benefits.
Partial payments are typically 15% of your total coverage—so if you have a $100,000 policy, you’d receive $15,000 for a covered partial illness. These payouts are often capped at $50,000, though some companies have lower caps or may not offer partial benefits at all.
Additionally, some insurers allow multiple claims for different non-life-threatening illnesses, which provides greater protection.
Company | Number of conditions covered for partial payments | Percentage of chosen lump sum amount paid | Maximum payout | Number of times you can claim the partial benefit |
|---|---|---|---|---|
Assumption Life | None | |||
Beneva | 4 | 10% | $50,000 | 1 |
BMO Insurance | 7 | 15% | $50,000 | 1 |
Canada Life | 8 | 15% | $50,000 | 4 |
Canada Protection Plan | None | |||
Desjardins | 19 | 1%, 15%, or 30% | $5,000, $25,000, $50,000, or $100,000 | 1 per category |
Edge Benefits | 2 | 20% | $20,000 | 1 |
Empire Life | 6 | 15% | $50,000 | 2 |
Equitable Life | 8 | 15% | $50,000 | 1 per illness |
Foresters | 8 | 15% | $50,000 | 2 |
Humania | 3, 4, or 7 | 10% or 15% | $10,000 | 1 |
Industrial Alliance | 7 | 15% | $50,000 | 4 |
ivari | 4 | 15% | $50,000 | 1 |
Manulife | 6 | 25% | $50,000 | 1 |
RBC Insurance | 7 | 10% | $50,000 | 1 |
Sun Life | 8 | 15% | $50,000 | 4 |
TD Insurance | None | |||
UV Insurance | 4 | 10% | $50,000 | 1 |
Note: Desjardins has five different categories of partial illnesses, including early cancers and minor cardiovascular conditions and procedures. You can only claim once per category. Its payout percentage and cap depend on the type of illness you are diagnosed with.
6. Survival period
The survival period, also known as the waiting period, is the minimum time you must survive after a diagnosis before receiving the benefit, which delays access to the financial support you may urgently need.
Some companies impose a 30-day survival period for all covered conditions, while others limit it to cardiovascular conditions only. The fewer conditions that require a waiting period, the quicker you can access your benefit.
Company | 30-day survival period |
|---|---|
Assumption Life | All illnesses |
Beneva | All illnesses |
BMO Insurance | Cardiovascular diseases only |
Canada Life | Cardiovascular diseases only |
Canada Protection Plan | All illnesses |
Desjardins | Cardiovascular diseases only |
Edge Benefits | All illnesses |
Empire Life | All illnesses |
Equitable Life | Cardiovascular diseases only |
Foresters | All illnesses |
Humania | All illnesses |
Industrial Alliance | Cardiovascular diseases only |
ivari | All illnesses |
Manulife | Cardiovascular diseases only |
RBC Insurance | All illnesses |
Sun Life | Cardiovascular diseases only |
TD Insurance | All illnesses |
UV Insurance | All illnesses |
Note: Certain illnesses have longer survival periods than the standard 30 days. For instance, bacterial meningitis may require a 90-day survival period, while conditions like paralysis and multiple sclerosis could have a 180-day requirement.
7. Conversion privileges
Most providers allow you to convert a term-10 or term-20 policy into term-75 or term-100 before a certain age. Some companies will even let you convert term-10 to term-20. These convertibility options can be useful if you want longer coverage but started with a term policy to keep initial costs lower.
You can convert your policy without requiring proof of good health, such as a medical exam or medical questions, ensuring you maintain future protection options even if your health condition declines.
However, you will pay the premiums based on your age when converting your policy, so expect your cost to increase upon conversion.
If convertibility is a priority, choose an insurance company that allows conversions up to age 65, giving you greater flexibility for future changes.
Company | Conversion privileges | Latest age to convert |
|---|---|---|
Assumption Life | No | |
Beneva | Yes | 65 |
BMO Insurance | Yes | 60 |
Canada Life | Yes | 65 |
Canada Protection Plan | No | |
Desjardins | Yes | 65 |
Edge Benefits | No | |
Empire Life | Yes | 65 |
Equitable Life | Yes | No |
Foresters | Yes | 55 |
Humania | Yes | 60 |
Industrial Alliance | Yes | 65 |
ivari | Yes | 60 |
Manulife | Yes | 64 |
RBC Insurance | Yes | 65 |
Sun Life | Yes | 65 |
TD Insurance | No | |
UV Insurance | No |
8. Type of underwriting
Simplified underwriting and traditional underwriting differ primarily in the level of health assessment required for approval. Simplified underwriting involves fewer medical questions and no medical exam, making it faster and more convenient if you have medical conditions or want to get approved quickly and avoid lengthy assessments.
Critical illness insurance policies with simplified underwriting often have lower coverage limits, fewer covered illnesses, and higher premiums because the insurer takes on more risk due to limited health information.
Some providers like Assumption Life, The Edge Benefits, and TD Insurance specialize in simplified underwritten products.
On the other hand, traditional underwriting, or fully underwritten policies, involves a more detailed health evaluation, which may include medical exams, doctor’s reports, and comprehensive health questionnaires.
While this process can take longer, it usually results in lower premiums, more covered illnesses, and higher coverage amounts because the insurer has a clearer understanding of your health risk. Fully underwritten critical illness policies are generally more affordable for healthy individuals, but the approval process is more thorough and may result in denials if you have pre-existing conditions.
Most insurance companies, such as Beneva, BMO Insurance, and ivari, have traditionally underwritten products.
Company | Type of underwriting |
|---|---|
Assumption Life | Simplified |
Beneva | Traditional |
BMO Insurance | Traditional |
Canada Life | Traditional |
Canada Protection Plan | Simplified |
Desjardins | Traditional |
Edge Benefits | Simplified |
Empire Life | Both types available |
Equitable Life | Traditional |
Foresters | Both types available |
Humania | Both types available |
Industrial Alliance | Both types available |
ivari | Traditional |
Manulife | Both types available |
RBC Insurance | Traditional |
Sun Life | Both types available |
TD Insurance | Simplified |
UV Insurance | Traditional |
9. Riders
Critical illness riders are additional options you can add to your policy to enhance its coverage. One of the most popular ones is the return of premium (ROP) rider, which offers various ways to recover some or all of your premiums under certain circumstances. The three main types of return of premium riders are ROP on death, ROP on expiry, and ROP on cancellation or surrender.
- Return of premium on death: If you pass away without having made a claim, this rider ensures that your beneficiaries will receive the total premiums you’ve paid, offering a partial refund and a form of protection for your loved ones.
- Return of premium on expiry: This rider refunds your premiums if you outlive the policy’s expiry (typically age 75) without making a claim. It provides a financial safety net, ensuring that your investment in the policy isn’t lost if you remain healthy and don’t need the coverage.
- Return of premium on cancellation/surrender: With this option, you can get your premiums back if you decide to cancel the critical illness insurance policy before its term ends. It offers flexibility, as you can recover your investment if your circumstances change or you no longer need the coverage.
Each ROP rider increases the cost of the critical illness insurance policy, but they can add significant value by ensuring your premiums aren’t entirely lost, even if you never make a critical illness claim.
Company | Return of premium on death | Return of premium on expiry | Return of premium on cancellation or surrender | Other riders |
|---|---|---|---|---|
Assumption Life | Yes | Yes | Yes | None |
Beneva | Yes | Yes | Yes | Children’s endorsement, disability waiver of premium, benefit in case of fracture |
BMO Insurance | Yes | Yes | Yes | Children’s term, accidental death benefit, disability waiver of premium |
Canada Life | Yes | Yes | Yes | Disability waiver of premium, second event, loss of independent existence |
Canada Protection Plan | Yes | No | No | Accidental death benefit |
Desjardins | Yes | Yes | Yes | Disability waiver of premium, accidental fracture, accident benefit, accidental death, dismemberment or loss of use, children’s life protection and children’s accidental fracture |
Edge Benefits | No | No | No | Child critical illness rider |
Empire Life | Yes | Yes | Yes | Disability waiver of premium, accidental death & dismemberment, children’s life rider, children’s critical illness rider |
Equitable Life | Yes | Yes | Yes | Waiver of premium on death or disability |
Foresters | Yes | Yes | Yes | Disability waiver of premium, juvenile critical illness insurance rider |
Humania | Yes | Yes | Yes | Accidental death and dismemberment, disability waiver of premium, life insurance |
Industrial Alliance | Yes | Yes | Yes | Increased benefit rider, disability waiver of premiums, owner waiver of premiums on death and/or disability, accidental fracture, hospitalization, hospitalization and home care, supplementary income, paramedical care in the event of an accident, children’s critical illness coverage |
ivari | Yes | No | No | Disability waiver of premium, payor waiver of premium on death |
Manulife | Yes | Yes | Yes | Children’s critical illness, disability waiver of premium |
RBC Insurance | Yes | No | No | Scheduled increase benefit, disability waiver of premium |
Sun Life | Yes | Yes | Yes | Disability waiver of premium, owner waiver death and/or disability benefit, long-term care conversion option |
TD Insurance | No | No | No | None |
UV Insurance | No | No | No | Accidental fracture, waiver of premium on death or disability, waiver of premium in the event of loss of employment |
10. Value-added services
Value-added services like Teladoc Medical Experts are often included with critical illness insurance policies, offering access to expert medical opinions, second opinions, and personalized health advice from specialists. These services can provide invaluable support, helping you better understand your diagnosis and explore treatment options.
However, it’s important to note that these services are not contractually guaranteed, meaning the insurance company can modify or discontinue them at any time. While they add value to the critical illness policy, they shouldn’t be relied upon as a permanent benefit.
Company | Value-added service |
|---|---|
Assumption Life | None |
Beneva | Assistance benefit |
BMO Insurance | Teladoc Medical Experts, LifeWorks |
Canada Life | Teladoc Medical Experts, LifeWorks |
Canada Protection Plan | None |
Desjardins | Complimentary assistance services |
Edge Benefits | None |
Empire Life | MedExtra Inc. |
Equitable Life | Cloud DX |
Foresters | Teladoc Medical Experts |
Humania | Teladoc Medical Experts |
Industrial Alliance | MediGuide Medical Second Opinion |
ivari | Virtual Healthcare by Maple |
Manulife | Medical Second Opinion |
RBC Insurance | Teladoc Medical Experts, Medical Confidence Service, “The Healing Journey” program |
Sun Life | Teladoc Medical Experts |
TD Insurance | None |
UV Insurance | Teladoc Medical Experts |
11. How to purchase coverage
There are two main ways to buy critical illness insurance. You can purchase it directly from the insurance company, either online or by phone, which offers a streamlined process but may limit the advice and options available.
Alternatively, you can buy it through a licensed life insurance advisor, who can provide personalized recommendations based on your specific needs and compare multiple providers to find the best critical illness insurance policy for you. Working with an advisor also gives you access to their expertise throughout the policy’s life, helping you navigate any changes or claims.
Company | How to purchase |
|---|---|
Assumption Life | Through a licensed insurance advisor |
Beneva | Through a licensed insurance advisor |
BMO Insurance | Through a licensed insurance advisor |
Canada Life | Through a licensed insurance advisor |
Canada Protection Plan | Directly from the insurance provider or through a licensed insurance advisor |
Desjardins | Complimentary assistance services |
Edge Benefits | Directly from the insurance provider or through a licensed insurance advisor |
Empire Life | Through a licensed insurance advisor |
Equitable Life | Through a licensed insurance advisor |
Foresters | Through a licensed insurance advisor |
Humania | Through a licensed insurance advisor |
Industrial Alliance | Through a licensed insurance advisor |
ivari | Through a licensed insurance advisor |
Manulife | Directly from the insurance provider or through a licensed insurance advisor |
RBC Insurance | Through a licensed insurance advisor |
Sun Life | Directly from the insurance provider or through a licensed insurance advisor |
TD Insurance | Directly from the insurance provider |
UV Insurance | Through a licensed insurance advisor |
Note: Manulife and Sun Life offer simplified underwriting products available for direct purchase. However, if you’re interested in their traditionally underwritten products, which cover more critical illnesses and have higher coverage amounts, you will need to go through an insurance advisor.
Want Critical Illness Insurance Quotes From The Best Insurance Company?
Choosing the right critical illness insurance is an important decision that can provide peace of mind and financial protection during challenging times. We’re here to help you find the best coverage tailored to your needs.
As part of our service:
- We analyze your financial, personal, and health situation to determine a critical illness plan that suits your needs.
- We compare multiple providers to find the best critical illness insurance plan at the most affordable cost, ensuring it fits within your budget.
- We approach the insurance company to get an opinion on your medical conditions, helping gauge your likelihood of approval so you don’t waste time applying only to be declined.
- We guide you through the entire process, step by step, so you understand how to confidently purchase the right policy for you.
Whether you need a critical illness policy or a complete insurance solution—including life, disability, health & dental, and critical illness insurance—we can design a plan that fits your financial and personal circumstances.
For a free, no-obligation consultation, email us at info@briansoinsurance.com or call 604-928-1628. You can also use the form below to receive a critical illness insurance quote delivered directly to your inbox!
