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What is Critical Illness Insurance & Why it Works

By: Benefits by Design | Tuesday January 29, 2019

Updated : Wednesday August 19, 2020

Critical Illness (CI) Insurance covers plan members and their dependents for unexpected serious illnesses from a predetermined list of covered conditions. Upon diagnosis of one of the covered conditions, and after the applicable waiting period, the policyholder receives a tax-free lump-sum payment.

CI protects plan members from the financial hardships associated with serious illnesses and allows them to focus on recovery.

What is Covered Under Critical Illness Insurance?

Nearly one in two Canadians are expected to be diagnosed with cancer in their lifetime. Cancer is the leading cause of death in Canada and is responsible for 30% of all deaths.

Alongside cancer, incidences of heart disease and stroke are increasing as well, pointing to an ever-increasing likelihood of a serious illness impacting your workplace.

With CI insurance, you can protect their financial wellbeing. CI Insurance covers serious, unexpected illnesses, including:

It’s becoming more and more likely that an employee will receive a diagnosis for a serious illness during their lifetime. More than ever before, employees are looking at an employer’s benefit plan as an important piece of their total compensation package.

Specific illnesses covered under the benefit may vary by Insurer and product. Be sure to check your benefits booklet to determine your specific coverage.

Chronic disease in Canada is on the rise and Canadians are increasingly more likely to develop one.

Learn more about the chronic disease statistics in Canada!

Why You Should Offer CI Insurance

Although we administer group benefits plans to over 4,000 businesses across Canada, we’re also employers ourselves.

We offer CI Insurance as part of our employee benefits plan, and we’re thankful we do. Over the years, we’ve had employees make claims for serious illnesses that, without coverage, could have led to increased stress and financial strain.

Being with those employees through their struggle of diagnosis, treatment, recovery, and eventual return to work has proven to us the merits of CI Insurance. The lump-sum payment relieves the financial stresses like medical costs or loss of income so that employees can focus on their recovery.

Read about the experiences of one of BBD’s own employees as she battled cancer and how she utilized her Critical Illness benefit.

Read Shannon's story!

Illustrating the Importance of Critical Illness Insurance

When it comes to protecting employees, CI Insurance is important. Take a look at this ebook to learn the advantages of the benefit and a real-life use case.

Download the Critical Illness ebook.

Critical Illness Insurance ebook