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What is Critical Illness Insurance and What is Covered?

By: Benefits by Design | Tuesday January 29, 2019

Updated : Tuesday November 7, 2023

Critical Illness (CI) Insurance covers plan members and their dependents for some of the most common illnesses and diseases affecting Canadians today, such as cancer, heart disease, and stroke.

What is Critical Illness Insurance?

Critical Illness Insurance provides financial assistance upon diagnosis of a covered condition in the form of a lump-sum payment that is completely tax-free. This payment can be used on anything the recipient deems appropriate, from medications and hospital costs, to the paying off of debt, and more.

This financial assistance allows the person diagnosed to focus on their recovery and less on the financial hardships a serious diagnosis can bring.

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.

Scary statistics that will make you rethink not having critical illness insurance

With Critical Illness Insurance, you can protect their financial wellbeing from the impact of such serious diseases, including:

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.

Critical Illness and Chronic Disease is Rising in Canada

Statistically, it is becoming increasingly likely that a Canadian will receive a serious diagnosis. Providing Critical Illness Insurance and Critical Illness Insurance is well-positioned as a level of protection.

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 (PDF 6.63 MB)