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Life throws unexpected curveballs, and major illnesses can be some of the most challenging. The financial burden of a critical illness diagnosis can be immense, adding stress to an already difficult time. Critical illness insurance can be a powerful safeguard, offering a financial safety net when you need it most.
In this post, we examine Canada Life’s critical illness insurance policies. We explore the pros and cons and coverage details, pointing out where they have a competitive edge or disadvantage compared to other insurance companies’ products. So, let’s take a look at how Canada Life can protect yourself and your loved ones from the financial impact of a critical illness.
- Key takeaways:
- Canada Life has two critical illness insurance plans developed to cover adults and children.
- Its adult plan, called LifeAdvance, pays up to a $3,000,000 lump sum benefit if you are diagnosed with a critical illness covered by the policy.
- Child LifeAdvance covers children until they reach age 25, offering financial support if a child requires costly medical treatments for their illness.
About Canada Life Insurance Company
Canada Life boasts a remarkable history dating back to 1847, making it Canada’s first life insurance company. Founded by Hugh C. Baker in Hamilton, Ontario, Canada Life has grown alongside the nation, providing financial security to Canadians for over 175 years.
In 2020, Canada Life joined forces with Great-West Life and London Life to form an even stronger entity—The Canada Life Assurance Company.
In 2022, Canada Life paid out more than $6.6 billion in life and health insurance benefits.
While critical illness insurance is a key offering, Canada Life’s portfolio extends far beyond. They provide a comprehensive suite of insurance products, including:
- Life insurance, including term and whole life
- Disability insurance
- Health and dental insurance
- Creditor insurance
- Segregated funds
- Payout annuities
Canada Life’s commitment to policyholders is evident in its long-standing tradition of distributing dividends. They’ve been sharing profits with policyholders since 1848, a testament to their financial strength and dedication to customer value, even during economic challenges.
Key facts about Canada Life Insurance Company
AM Best Rating: A+
Head office: 100 Osborne St N, Winnipeg, MB, R3C 1V3
Website: https://www.canadalife.com/
Contact phone number: 1-204-946-1190
What Critical Illness Insurance Plans Does Canada Life Insurance Offer?
A critical illness is a severe medical condition that can significantly impact your life. The statistics surrounding these illnesses can be sobering. In Canada:
- Cancer: The Canadian Cancer Society estimates that 2 in 5 Canadians will develop cancer in their lifetime, with 75% expected to survive a cancer diagnosis.
- Heart attack: 60,000 Canadians suffer a heart attack each year.
These are just two examples, and the financial burden of a critical illness can be immense. Medical expenses, lost income due to time off work, and ongoing care can quickly deplete savings. This is where critical illness coverage can play a crucial role.
Canada Life’s critical illness insurance provides a tax-free lump sum benefit upon diagnosis of a covered critical illness and enduring a short survival period. Common conditions covered by critical illness insurance policies include cancer, heart attack, stroke, coronary artery bypass surgery, and organ failure. This financial safety net can be used for a variety of purposes, including:
- Managing medical expenses: The payout can help cover out-of-pocket medical expenses not covered by your provincial health care plan, easing the financial burden of treatment.
- Replacing lost income: If you’re unable to work due to your illness, the payout can help bridge the gap and cover daily costs, allowing you to continue to pay your bills.
- Maintaining your mortgage payments and rent: Critical illness can disrupt your ability to meet financial obligations. The payout can ensure your rent or mortgage payments are covered, keeping a roof over your head during a challenging time.
- Improved care and quality of life: The payout’s financial security allows you to focus on recovery, whether that’s exploring alternative treatments or making home modifications for improved accessibility.
Next, let’s examine Canada Life’s critical illness insurance plans and see how they can provide financial support if you face a serious illness.
LifeAdvance
Canada Life’s LifeAdvance critical illness insurance product offers comprehensive coverage in the event you are diagnosed with a critical illness. It covers 25 conditions, including cancer, heart attack, and stroke.
With LifeAdvance, you can tailor coverage to your specific needs. You can choose a payout amount ranging from $10,000 to $3,000,000 and select from various term lengths to ensure coverage aligns with your time horizon. The plan is available for individuals aged 18-65, providing valuable protection during prime working years.
LifeAdvance extends its support beyond a simple financial payout. The program offers access to Teladoc Medical Experts, a network of health care professionals facilitating virtual consultations. This service connects you with the right specialists and helps you navigate the Canadian health care system, ensuring you can get the medical treatments you need.
Additionally, you have access to LifeWorks, which offers professional counselling, family support services, registered dieticians, and more to help you manage the stress of a critical illness.
- Pros:
- LifeAdvance offers coverage limits up to $3,000,000, exceeding what most other critical illness insurance providers offer.
- The plan pays 15% of your benefit amount if you're diagnosed with one of eight less severe conditions, which is more than most competitors. Additionally, these benefits can be paid out multiple times for qualifying illnesses, like early thyroid cancer or superficial malignant melanoma.
- If surgery is required for a covered condition, LifeAdvance advances 10% of your chosen benefit amount without needing to satisfy a waiting period to help manage immediate financial needs.
- A unique optional rider called 'second event' allows you to claim benefits for both heart attack and cancer if you are diagnosed with both conditions one after the other. This provides additional financial protection in case of multiple critical illnesses.
- Cons:
- While LifeAdvance covers 25 critical illnesses, loss of independent existence (LOIE) is not included in the base policy. This benefit requires purchasing an additional rider, which increases your cost. Most competitors automatically include LOIE coverage, offering broader protection at a lower upfront cost.
- LifeAdvance offers a 15% payout for some covered critical illnesses diagnosed in their early stages. This payout is lower than that of some competing critical illness plans, which provides up to 25% for early-stage diagnoses.
Child LifeAdvance
For parents and guardians, a child’s health is paramount. Canada Life recognizes this with its specialized critical illness insurance product designed for children. This plan offers invaluable financial support in the event a child is diagnosed with a covered critical illness.
Child LifeAdvance goes beyond standard critical illness coverage by including five childhood-specific illnesses, such as cerebral palsy and muscular dystrophy, bringing the total number of covered conditions to 26. This comprehensive protection ensures financial resources are available when a child faces a critical medical challenge.
The plan is available for children from 60 days to 17 years old. Premiums are guaranteed to remain level until the child turns 25. At that time, the policy expires unless it’s converted into a regular LifeAdvance plan, which provides continuous coverage into adulthood if needed.
With Child LifeAdvance, you can choose a lump-sum benefit amount ranging from $10,000 to $500,000. This tax-free payment can help alleviate the financial burden associated with a child’s critical illness, allowing families to focus on providing emotional support to their child throughout their recovery.
- Pros:
- Child LifeAdvance offers benefits that mirror those of LifeAdvance, ensuring a consistent approach to critical illness protection across your family. This includes payouts for less severe illnesses diagnosed in the early stages and a surgery advance benefit to help manage immediate costs associated with covered conditions.
- It offers an optional return of premium on expiry rider. This return of premium benefit provides a cash injection by guaranteeing that if your child reaches the age of 25 without a critical illness diagnosis, you'll receive a full refund of all premiums paid. This offers financial protection while ensuring you haven't paid for coverage that ultimately wasn't needed.
- Cons:
- While Child LifeAdvance covers 26 critical illnesses, some competing children's critical illness plans may offer coverage for 30 to 31 conditions, making a comparison based on price alone insufficient.
- It doesn't have some of the adult plan's riders, like second event and disability waiver of premium.
- Since it expires at age 25, it does not provide lifetime coverage for children like other insurance companies' products.
Here is a table with more details about Canada Life’s critical illness insurance policies:
LifeAdvance | Child LifeAdvance | |
|---|---|---|
Age eligibility | 18-65 | 60 days to 17 years old |
Number of illnesses covered | 25 | 26 |
Plan types | Term-10, Term-20, Term-75, Term-75 20-pay, Term-100, Term-100 15-pay, Term-100 20-pay | Term-25 |
Guaranteed premiums | Yes | Yes |
Expiry | Age 75 or 100, depending on the plan | Age 25 |
Coverage limits | $10,000 to $3,000,000 | $10,000 to $500,000 |
Survival period | 30 days for cardiovascular diseases only | 30 days for cardiovascular diseases only |
Partial benefits | Pays 15% of the chosen benefit amount, up to $50,000, for less severe illnesses. Covers eight illnesses. Can pay up to four times | Pays 15% of the chosen benefit amount, up to $37,500, for less severe illnesses. Covers eight illnesses. Can pay up to four times |
Conversion privileges | Term-10 and term-20 can be converted to term-75 or term-100. Term-10 can be converted to term-20 | Can be converted upon expiry to any LifeAdvance plan |
Type of underwriting | Fully underwritten. A medical exam may be necessary | Fully underwritten. A medical exam may be necessary |
Riders | Return of premium at death, return of premium at expiry, return of premium at surrender, disability waiver of premium, second event, loss of independent existence | Return of premium at death, return of premium at expiry |
Value-added service | Teladoc Medical Experts, LifeWorks | Teladoc Medical Experts, LifeWorks |
How to purchase | Through a licensed insurance advisor | Through a licensed insurance advisor |
What Illnesses Does Canada Life Critical Illness Insurance Cover?
Here’s a list of conditions covered by Canada Life’s critical illness policies.
LifeAdvance
This product pays out full benefits for these 25 illnesses:
- Acquired brain injury
- Aortic surgery
- Aplastic anaemia
- Bacterial meningitis
- Benign brain tumour
- Blindness
- Coma
- Coronary artery bypass surgery
- Deafness
- Dementia, including Alzheimer’s disease
- Heart attack
- Heart valve replacement or repair
- Kidney failure
- Life-threatening cancer
- Loss of limbs
- Loss of speech
- Major organ failure on waiting list
- Major organ transplant
- Motor neuron disease
- Multiple sclerosis
- Occupational HIV infection
- Paralysis
- Parkinson’s disease and specified atypical Parkinsonian disorders
- Severe burns
- Stroke
Unlike most competitor plans that include loss of independent existence automatically, LifeAdvance requires it as an optional rider, which incurs an additional cost. This means you’ll need to factor in the rider premium when comparing LifeAdvance to plans that include LOIE as standard coverage.
Like other insurance companies’ critical illness products, LifeAdvance goes beyond standard coverage by offering payouts for some conditions diagnosed in their early stages, also known as ‘illness assist benefit’ by Canada Life.
For these eight covered critical illnesses, including early-stage intestinal cancer and neuroendocrine tumours (not typically covered by all competitors), LifeAdvance provides a 15% payout of your chosen benefit amount, up to a maximum of $50,000. This payout can help manage initial costs associated with treatment while the illness is still treatable.
Here are the eight conditions that qualify for the illness assist benefit:
- Coronary angioplasty
- Ductal breast cancer in-situ
- Early chronic lymphocytic leukemia
- Early prostate cancer
- Early thyroid cancer
- Gastrointestinal stromal tumours
- Grade 1 neuroendocrine tumours
- Superficial malignant melanoma
Child LifeAdvance
The child critical illness plan pays out full benefits for these 21 illnesses:
- Acquired brain injury
- Aortic surgery
- Aplastic anaemia
- Bacterial meningitis
- Benign brain tumour
- Blindness
- Coma
- Coronary artery bypass surgery
- Deafness
- Heart attack
- Heart valve replacement or repair
- Kidney failure
- Life-threatening cancer
- Loss of limbs
- Loss of speech
- Major organ failure on waiting list
- Major organ transplant
- Multiple sclerosis
- Paralysis
- Severe burns
- Stroke
Plus these five childhood illnesses, for a total of 26 covered conditions.
- Cerebral palsy
- Congenital heart disease
- Cystic fibrosis
- Muscular dystrophy
- Type 1 diabetes mellitus
Like LifeAdvance, it pays a partial benefit for the same eight early stage illnesses.
How Much Does Canada Life Critical Illness Insurance Cost?
The cost of your LifeAdvance premium will vary depending on your individual circumstances. Here’s a breakdown of key factors that influence your rate:
- Age: Younger applicants pay lower premiums than older ones, reflecting the lower risk of critical illness at a younger age.
- Gender: Statistics show women generally have a lower risk of critical illness compared to men at older ages, which can be reflected in their premium costs.
- Smoking status: Non-smokers pose a lower risk to insurance companies and qualify for significantly lower premiums compared to smokers.
- Health history: Your overall health plays a significant role. Pre-existing medical conditions can affect your eligibility and potentially increase your premium cost.
- Lifestyle habits: Low-risk lifestyle choices are rewarded. Drug use, excessive alcohol consumption, participation in hazardous hobbies, and a poor driving record may all influence your eligibility and premium amount.
- Family history: A family history of severe hereditary diseases may raise your premium cost due to the increased risk of developing these conditions.
- Benefit amount: The more coverage you choose, the higher your premium will be.
- Plan term: Shorter term lengths (e.g., term-10 or term-20) are generally less expensive than longer terms (e.g., term-75 or term-100) that provide coverage further into the future.
The table below shows the monthly premiums for $100,000 of coverage for a term-10 LifeAdvance plan for healthy non-smoking men and women in the first 10 years:
Age | Male | Female |
|---|---|---|
25 | $22 | $24 |
30 | $26 | $26 |
35 | $30 | $31 |
40 | $40 | $43 |
45 | $62 | $61 |
50 | $95 | $82 |
55 | $158 | $125 |
60 | $252 | $172 |
How Do You Buy A Canada Life Critical Illness Insurance Plan?
LifeAdvance isn’t available for direct online purchase. Instead, Canada Life prioritizes personalized guidance through licensed insurance agents. An advisor will take the time to understand your health situation, financial goals, and family needs. Based on this comprehensive analysis, your advisor will determine how much coverage you need and quotes from an appropriate LifeAdvance plan.
Next, they’ll guide you through the application process, ensuring all necessary information is accurately documented.
As part of the application process, you’ll be required to answer questions about your medical history, lifestyle habits, and family health background. In some cases, a medical exam may be necessary, which could involve blood and urine tests. The insurance company’s underwriters use this information to assess your overall health and risk profile.
Based on the underwriting assessment, the insurance company will determine your risk profile. If your risk aligns with the average person of your age, gender, and smoking status, you’ll likely receive a policy offer at standard rates.
However, if the underwriter identifies a higher risk based on your family history, health or lifestyle factors, they may offer a modified policy with adjusted premium rates. Your advisor will be there to explain the details and help you understand your options.
Need A Canada Life Critical Illness Insurance Quote?
A critical illness can profoundly impact your life, both physically and financially. Canada Life’s LifeAdvance offers comprehensive protection, but it’s important to choose the critical illness insurance plan that best suits your unique needs and budget.
We understand the importance of personalized guidance. That’s why we offer free, no-obligation consultations. During this initial consultation, we will discuss your health situation, family needs, and financial goals. We’ll work with you to explore all your options, whether LifeAdvance or a plan from another carrier, to ensure you get the optimal coverage. Finding a plan that fits comfortably within your budget is a priority.
Our commitment to your well-being extends beyond the initial policy purchase. As your life evolves, we’ll conduct regular reviews of your critical illness coverage. This ensures your plan continues to effectively meet your changing needs, providing ongoing peace of mind.
Don’t wait to prioritize your health security. Contact us today by email at info@briansoinsurance.com or call us at 604-928-1628 to schedule your free consultation and take the first step towards a more secure future for yourself and your loved ones.
Get Your Critical Illness Insurance Quote Now
While we make every effort to keep our site updated, please be aware that timely information on this page, such as quote estimates, or pertinent details about companies, may only be accurate as of its last edit day. Brian So Insurance and its representatives do not give legal or tax advice. Please consult your own legal or tax adviser. This post is a brief summary for indicative purposes only. It does not include all terms, conditions, limitations, exclusions, and other provisions of the policies described, some of which may be material to the policy selection. Please refer to the actual policy documents for complete details which can be provided upon request. In case of any discrepancy, the language in the actual policy documents will prevail. A.M. Best financial strength ratings displayed are not a warranty of a company’s financial strength and ability to meet its obligations to policyholders.
