Best Critical Illness Insurance in Canada

Thinking of buying critical illness insurance cover but not sure which company is right for you?

Don’t worry. We’ve got you covered. We compared plans from major insurance companies in Canada using a range of metrics, including the extent of coverage, optional benefits, monthly premium rates, and ease of application. These are the ones that came on top.

Key Takeaways

• Critical illness provides you with a lump sum if you are diagnosed with a covered condition
• Manulife, Canada Life, Sun Life, iA Financial, and Desjardins are among our top choice for the best critical illness insurance in Canada
• Important aspects to consider when shopping for the best critical illness insurance cover include provider’s reputation, number of illnesses covered, maximum benefit, add-ons, and partial payouts 

What is Critical Illness Insurance?

Critical illness insurance provides you with a lump sum amount of money if you develop a covered condition. The tax-free, one-off payment can help you pay for medical costs not covered by your health insurance and other expenses, ensuring you can focus on getting better without financial worries. 

Why should I get Critical Illness Insurance?

Paying for critical illness care often goes beyond the expenses covered by traditional health insurance. This is where critical illness insurance can come in and act as a financial safety net. 

In the event of a critical illness diagnosis, you will receive a tax-free, lump-sum payment that you can use however you like. It can help you pay medical costs not covered by your health insurance, in-home care, mortgage or rent, groceries, home adaption, home maintenance, and loan payments. 

With adequate critical illness coverage, you can rest easy knowing that should life take an unpleasant term, you will be able to access quality medical care without looking over the shoulder for the funds. 

How does critical illness insurance work? 

• You buy a policy that meets your needs and budget
• In the event of a covered condition, you file a claim, submitting supporting medical evidence asked by your insurer
• The insurer will review the claim, and if everything is in order, will pay the claim amount promptly
• If your condition is serious enough to warrant the full sum assured, your critical illness plan terminates
• You can use the payout at your discretion

What does critical illness insurance cover?

Exactly what conditions will trigger a payout varies between providers. However, most plans cover these common critical illnesses: 

• Heart attack
• Stroke
• Coronary artery bypass surgery
• Life-threatening cancer

If you opt for comprehensive critical illness cover, your policy is likely to cover many additional illnesses and conditions, including:

• Multiple sclerosis
• Loss of limbs
• Permanent loss of hearing or vision
• Dementia 
• Renal failure
• Severe burns
• Arthritis

Typically, the basic critical illness cover includes three or four illnesses, whereas a comprehensive policy offers protection against 25 or 26 illnesses and conditions. However, there are insurance providers which cover more than 40 conditions. It therefore pays to do thorough research or seek help from an expert advisor.

What does critical illness insurance not cover?

Even though exclusions vary from one policy to another, critical illness insurance generally doesn’t cover chronic health conditions, such as asthma or diabetes. It also doesn’t pay out benefits for conditions related to drug or alcohol use or injuries sustained while engaged in an unlawful activity or resulting from self-harm. Read the policy document carefully before signing to confirm what conditions are covered and what are not. 

Best Critical Illness Insurance Companies in Canada

As an independent insurance broker, we compare all of Canada’s top critical illness insurance providers for our clients. The best critical illness insurance company for you depends on your situation and financial goals, so getting an overview of different insurers can go a long way in helping you make the right decision. 

Best Overall: Sun Life

Sun Life is one of the largest insurance companies in Canada and provides two types of critical illness insurance plans: Sun Critical Illness Insurance and Express Critical Illness. 

Policy Overview 

Product Name: Sun Critical Illness Insurance

• Covers 26 illnesses
• Offers a partial payout for eight conditions
• Three term options available: 10 years (renewable), up to age 75, and permanent cover
• Coverage amount ranges from $25,000 - $1 million
• Multiple riders available, including the return of premium

Product Name: Express Critical Illness

• Provides coverage for up to eight critical illnesses
• Benefit amount ranges from $25,000 - $50,000
• Online approval without having to undergo a medical exam

Why We Like Sun Life

Sun Life offers two critical illness insurance plans, with both offering options to tailor the coverage based on your personal situation and budget. Other positive factors include solid reputation, a wide range of additional benefits, and no-medical coverage for up to $50,000. 

Pros & Cons

Best for Multiple Coverage Options: Manulife

Manulife, one of Canada’s most well-known insurance companies, offers a variety of critical illness plans under three names: Lifecheque, CoverMe, and Synergy. 

Policy Overview 

Product Name: Lifecheque

• Covers 25 critical illnesses
• Available in a variety of terms, including 10-year, 20-year, up to age 65 or 75, and permanent coverage
• Partial payout of up to $50,000 for six illnesses
• Return of premium rider and several other additional benefits
• Coverage of up to $2 million

Product Name: CoverMe

• Online quotes
• Provides protection against 5 major illnesses
• Coverage of up to $75,000

Product Name: Synergy

• Provides life insurance, disability insurance, and critical illness insurance cover under one policy
• Critical illness coverage of up to $500,000
• Covers 24 illnesses

Why We Like Manulife 

Three critical illness insurance plans, up to $2 million of coverage, multiple term options, a range of riders, and unique benefits such as the Monthly Care Benefit make Manulife a good fit for diverse needs.

Pros & Cons 

Best for Extensive Coverage: RBC 

RBC provides both comprehensive (Critical Illness Recovery Plan) and basic critical illness cover (Critical Illness Insurance Plan).

Policy Overview 

Product Name: Critical Illness Recovery Plan 

• Covers 30 illnesses
• Coverage of up to $2 million
• Various term and premium options
• Option to increase the benefit amount without medical underwriting
• Plenty of riders, including return of premium on death and waiver of premium upon disability

Product Name: Critical Illness Insurance Plan

• Covers three critical illnesses
• Maximum benefit amount is $75,000
• Available to adult Canadian residents up to age 50

Why We Like RBC

With coverage for 30 conditions and $2 million in benefits, RBC’s critical illness insurance cover is as comprehensive as they come. It's also hyper flexible, thanks to various term and premium options and multiple additional benefits.

Pros & Cons 

Best for High-Dollar Coverage: Canada Life

With up to $3 million in coverage, 26 illnesses covered, multiple term and premium options, and plenty of riders, Canada Life is the Rolls-Royce of critical illness insurance plans. 

Policy Overview

Product Name: Life-advance

• Coverage of up to $3 million
• Covers 26 illnesses
• Second-event coverage included
• Multiple term options: 10-year term, 20-year term, up to age 75, and permanent coverage
• Two limited pay options (15 years and 20 years) for permanent coverage
• Generous partial payment benefit 
• Return of premium and other riders

Why We Like Canada Life

Canada Life offers critical illness cover for up to $3 million. This was one of the highest-value policies of all insurers we covered. While the additional coverage likely comes at a cost, this option could be a good fit for someone who wish to protect their wealth in the event of a severe illness. 

Pros & Cons

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Best Mutual Insurer: Beneva

Those looking for a mutualist company, where the focus is on providing insurance coverage to the members and policyholders rather than churning profits, may find Beneva right up their alley. It offers both basic and enhanced critical illness insurance coverage. 

Policy Overview

 Enhanced Critical Illness Insurance 

• Covers 25 serious illnesses and conditions 
• Coverage of up to $2 million
• Four term options: 10 years, 20 years, up to age 75, and permanent coverage
• Limited pay option (20 years)
• Multiple additional benefits, including return of premium and children’s coverage riders
• Partial payout of up to $50,000 for four conditions

Basic Critical Illness Insurance 

• Covers three critical illnesses
• 30-day waiting period
• Multiple term options

Why We Like Beneva

A young mutualist company with a whole lot of history, Beneva offers excellent value for money to many different types of workers, including those who are self-employed or run a small business. 

Pros & Cons

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Best Enhanced Coverage: BMO

BMO stands out among other Canadian insurers on the back of its affordable enhanced critical illness cover, aptly called Living Benefit. 

Policy Overview

Product Name: Living Benefit

• Covers 25 illnesses and conditions
• Four policy term options: 10 years, 20 years, up to age 75, and up to age 100 (permanent coverage)
• Benefit amount of up to $2 million
• Limited pay option (15 years)
• Partial benefit of up to $50,000 for seven conditions 

Why We Like BMO

BMO critical illness insurance cover is a cost-effective solution for Canadians looking for comprehensive protection without the bells and whistles.

Pros & Cons

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Best for Flexible Options: Industrial Alliance (iA)

Industrial Alliance offers four critical illness insurance plans, but it is its Transition (25 illnesses) plan that offers policyholders the maximum flexibility, including a unique feature that gradually reduces the coverage amount. 

Policy Overview

Product Name: Transition (25 illnesses)

• Covers 25 illnesses and conditions
• Available in five term options: 10-year, 20-year, 25-year, up to age 75, and up to age 100 (permanent coverage)
• Two limited pay options (10 and 20 years)
• Coverage of up to $2.5 million
• Decreasing coverage option to gradually reduce your benefit amount until it is half of the original benefit
• Multiple riders to make it easier for you to tailor the plan to your unique needs

Why We Like iA

Coverage of up to $2.5 million, multiple term and premium options, and a slew of additional features ensures iA’s Transition (25 illnesses) plan offers an all-around coverage. The decreasing coverage option makes iA critical illness cover a perfect fit for Canadians who want to carry critical illness cover until they pay off their mortgages. 

Pros & Cons

Best for built-in benefits: Empire Life

If a comprehensive critical illness insurance plan with lots of built-in benefits appeal to you, Empire Life’s CI Protect Plus plan could be a great fit. For those looking for basic coverage, CI Protect is a reasonable option. 

Policy Overview

Product Name: CI Protect Plus

• Covers 25 serious illnesses
• Coverage amount ranges from $25,000 to $250,000
• Multiple term options (10 years, 20 years, up to age 75, and up to age 100)
• Three impressive built-in benefits
• A wide choice of riders

Product Name: CI Protect 

• Covers four most common critical illnesses
• Coverage amount ranges from $25,000 to $75,000
• Two term options (10 years and 20 years)
• Benefit Payable on Death benefit is included

Why We Like Empire Life

In addition to the partial payout benefit, CI Protect Plus offers two benefits without any extra cost to you: Benefit Payable on Death (Empire Life pays a small benefit amount if you die without availing the claim benefits) and Medical Concierge Services (It gives you access to specific medical services, like remote second opinion). 

Pros & Cons

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Best for Multiple Term Options: Humania

Humania’s critical illness coverage has six term options, making it easier for you to match the term length to how long you’ll have dependents in your care. 

Policy Overview

Product Name: TermCritical Illness

• The enhanced cover includes 25 illnesses while the basic cover protects you against four illnesses
• Available in 10-, 15-, 20-, 25-, and 30-year terms and up to age 75
• Coverage of up to $1 million
• Loss of independence cover
• Childhood illness cover (7 childhood illness)
• Partial payment benefit (3 eligible conditions)
• Return of premium on death rider

Why We Like Humania

Humania offers robust comprehensive critical illness cover (25 illnesses) in five term options. In comparison, most other Canadian insurers offer 2 to 3 term options. 

Pros & Cons

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Best for Additional Benefits: Foresters Financial 

Up to $2 million in benefits, coverage for 25 illnesses, and a generous partial benefit that can be collected twice make Foresters Financial a smart choice for anyone looking for comprehensive critical illness insurance protection. 

Policy Overview

Product Name: Live Well Plus

• Covers 25 conditions
• Pays up to $2 million in benefits 
• Partial payment benefit (up to $50,000) for 8 conditions and it can be claimed twice
• Three term options: 10 years, 20 years, and until age 80
• Return of premium riders
• Childhood illness coverage

Why We Like Foresters Financial

Foresters has one of the few policies we reviewed that offered partial payout more than once. It also offers many additional riders to enhance your coverage. 

Pros & Cons

Best All Round Protection: Desjardins

Desjardins Personalized plan is the best all-round protection, covering 26 illnesses for up to $3 million and offering a generous partial benefit payout for 16 illnesses (most by any Canadian insurer).

Policy Overview

Product Name: Personalized

• Covers 26 illnesses
• Pays up to $3 million in benefits
• Partial payment benefit for 16 illnesses
• Multiple term options
• Most conditions don’t have a waiting period
• Children’s coverage
• Return of premium and other riders

Why We Like Desjardins 

The Personalized plan from Desjardins provides coverage of up to $ 3 million for 26 illnesses, offers multiple term options, includes several riders, and pays a generous partial payment benefit for 16 illnesses. This is one of the most comprehensive critical illness plans of all the companies' reviews. Apart from the Personalized plan, Desjardins offers two critical illness insurance products: Basic (for people who want basic protection against the most common critical illnesses) and Executive Health Plan (for business owners and executives). 

Pros & Cons

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Best for Lifetime Coverage: Equitable Life

If buying critical illness insurance coverage that doesn’t come with an expiry date appeals to you, Equitable Life could be an option. 

Policy Overview

Product Name: Equiliving 

• Covers 26 serious illnesses
• Maximum benefit amount is $2 million
• Early detection payment for 8 conditions
• Three term options: 10 years, up to age 75, and up to age 100 (permanent coverage)
• Plenty of riders, including return of premium and childhood illness coverage

Why We Like Equitable Life

Equitable Life has one of the few plans we reviewed that offered permanent coverage. 

Pros & Cons

How to Buy Critical Illness Insurance

That critical illness insurance is important is undeniable, but with so many plans on offer, finding the best plan is often quite a hassle. The following tips, however, will keep you in good stead when you start shopping for the best critical illness insurance plan. 

• Insurance Company Reputation

It’s a smart idea to research an insurer in detail before going through its plans with a fine-tooth comb. Some important questions you may want to ask are: 

• Is the provider stable financially? 
• Does it have good customer reviews?
• How smooth is their claim process?

• No. of illnesses covered and policy definitions

Consider the number of illnesses a shortlisted plan covers, as well as how it defines those illnesses. Some insurance companies have better definitions than others. 

• Children’s cover

Most providers in Canada offer childhood illness coverage, but the exact coverage may vary. When choosing the best critical illness insurance plan, consider things like how much the insurer will pay if your child gets sick, whether this rider is free, and the number of conditions it covers. 

• Policy term options

Most Canadian insurers offer critical illness cover for a specific term, such as 10 or 20 years or up to age 75. But permanent coverage is also available, though it will likely have higher premiums. Make sure your plan provides coverage for as long as you need it, since buying a new plan many years down the road may prove difficult. 

• Additional benefits

Finally, you may want to look at options, such as waiver of premium, return of premium, fracture cover, etc., to enhance your critical illness insurance cover. 

How much does critical illness insurance cost?

Critical illness insurance is more expensive than life insurance since it pays out during your lifetime. But exactly how much you’ll pay for it depends on many factors. They’re split into personal and policy factors. 

Personal Factors

• Age

Critical illness insurance premiums increase with age. That’s because the older we are, the higher the risk of developing a life-altering illness. 

• Health and lifestyle

A healthy BMI ratio and an active lifestyle improve your chances of securing lower premium rates. Being severely overweight or having one or more pre-existing conditions, in contrast, can significantly bump up your monthly insurance bill. 

• Smoking status

Smoking has been shown to significantly increase the risk of cardiovascular and respiratory diseases and certain types of cancer. If you smoke, brace yourself for higher premiums. 

• Occupation

If you have a dangerous job, your premium rates will be higher. For example, a construction worker runs a greater risk of serious injury than a hotel receptionist and hence will pay more for coverage than the latter, all other things being equal. 

Policy Factors

• Sum assured

The higher the benefit amount, the higher the monthly premiums. 

• Policy length

This refers to the time frame during which your policy is valid. The longer your policy lasts, the greater the cost. 

• Riders

Riders are additional benefits you can add to a base policy, usually for a fee, to enhance the coverage. Certain riders, such as the return of premium rider, can considerably increase the cost of insurance. 

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Conclusion

Critical illness provides monetary assistance should you be diagnosed with a covered condition. Manulife, Canada Life, Sun Life, iA Financial, and Desjardins are among our top choice for best critical illness insurance in Canada, thanks to the variety of coverage options and optional benefits they offer. However, since costs can vary by provider, it’s important to shop around before settling on a particular insurer.

Dundas Life does all the hard work for you, comparing different insurers on your behalf so you can get the best possible deal. Schedule your free consultation today.

FAQs

What is the difference between critical illness and disability insurance?

Both critical illness insurance and disability insurance provide financial protection in the time of crises, but they don’t offer the same kind of coverage. Disability insurance compensates you for lost wages if you can’t work due to an illness or injury. Critical illness insurance, in contrast, pays benefits if you are diagnosed with a covered illness or condition, regardless of whether you continue working post-diagnosis or not.

Unlike disability insurance, critical illness insurance doesn’t cover injuries or isn’t based on your income. Lastly, critical illness cover pays out a lump-sum amount, as opposed to monthly benefits paid by disability insurance. 

What is the difference between life insurance and critical illness insurance?

The main difference between life insurance and critical illness cover is the circumstances which trigger a payout. Life insurance pays out if you die, whereas critical illness insurance plans issues a lump sum if you are diagnosed with a covered condition. 

What is children’s critical illness insurance?

Children’s critical illness insurance pays a tax-free, lump-sum amount if your child is diagnosed with a covered condition. You can purchase children’s critical illness cover as a separate policy or add it to your critical illness cover, in which case your child will be covered for the same core illnesses as you. Many policies also include some children-specific medical conditions, such as Down’s syndrome, cerebral palsy, type 1 diabetes, and cystic fibrosis. 

What is mortgage critical illness insurance?

Mortgage critical illness insurance pays out all or part of the outstanding mortgage balance if you develop a covered illness or condition. It is usually offered as no-medical coverage, meaning you are not required to take a medical exam to prove eligibility.