An unexpected medical emergency or severe health diagnosis can be stressful in more ways than one. The good news is that there is one simple way to take the financial stress out of the mix. How? By securing critical illness insurance in Canada.

But how does critical illness insurance work? What does it cover? And do you really need it?

What is Critical Illness Insurance?

Critical illness insurance is designed to provide you and your loved ones with financial support in the event you experience a severe health condition. If you’re diagnosed with a covered critical illness, your insurance can provide you with a one-time lump-sum payout, subject to the terms of the policy, that can be used to cover anything that you and your family might need.

Critical illnesses can come with long-term, ongoing healthcare needs, or might require significant time off work to recuperate. Not only is it stressful, but these severe diagnoses can bring a significant financial burden to you and your loved ones.

Unlike life insurance, which only provides a financial benefit if you pass away, critical illness provides financial support while you’re still alive if you’re diagnosed with a covered illness. This is why the payout is often referred to as a living benefit.

This financial support can help cover anything from medical expenses to lost income, so you can focus on the most important thing—recovering.

What Illnesses Are Considered “Critical Illnesses”?

Critical illnesses typically refer to life-altering or severe conditions. They can often be longer-term illnesses and have serious impacts on the lives of those affected. Common critical illnesses that you might be familiar with include heart attacks, strokes, or cancer.

In the context of insurance, the critical illnesses that are covered will depend on your policy. CAA Critical Illness Insurance will cover as many as 44 conditions.

Critical illnesses are typically categorized into critical illness and early-stage critical illness. Early-stage critical illnesses are often diagnosed earlier and at a less severe stage. They’re usually still included in critical illness insurance because they can have potential longer-term, life-threatening implications.

Here’s a list of critical illnesses you might find included in a critical illness insurance policy:

What Factors Influence Critical Illness Insurance premiums?

Like most types of insurance, critical illness insurance premiums will vary from person to person. This means you likely won’t pay the same rate as your neighbor next door. Because of this variation, critical illness insurance rates can often feel like they’re shrouded in mystery. But there is actually some rhyme or reason to the rates you’ll see.

So, let’s look at some of the factors that influence critical illness insurance premiums.

Age: Unfortunately, the older you are, the more likely you are to experience a severe health issue. As a result, critical illness insurance premiums tend to go up with age.

Gender: Men typically pay higher critical illness insurance rates compared to women, as they’re statistically more likely to experience severe illnesses. For example, men are 2x more likely than women to experience a heart attack.

Health Risks: Critical illness insurance is closely tied to your health and well-being. So, if medical questions or a medical exam points to you being a higher risk for a severe health issue, you may find yourself with higher premiums. For example, smokers tend to have much higher rates than non-smokers.

Term Length: Longer critical illness insurance terms will have higher premiums than shorter policies since you’re more likely to experience health issues over a longer period of time. With that in mind, the slightly higher premiums might be worth it if you expect to need coverage well into the future. Because critical illness insurance tends to cost more as you age, you might end up paying even more at renewal.

Coverage Amount: The smaller your payout, the lower your premiums will be. While it’s important to be budget-conscious, it’s still important to make sure that you have enough coverage so you’re financially protected if you do experience a critical illness.

Insurance Provider: Each insurance company calculates its critical illness insurance premiums a little differently. So, you might see different rates from different companies, even for the exact same coverage. It’s also important to remember that the covered conditions can vary significantly from one insurance provider to the next. Insurance providers with less covered conditions often have lower rates, but might leave you vulnerable to other severe health diagnoses.

Make sure to read the fine print before signing off on your policy, so you understand exactly which conditions you’re insured against.

Get Critical Illness Insurance from CAA

CAA Critical Illness Insurance, provided by Securian Canada, is a great option that gives you the coverage you need. Plus, CAA Members can save 10% on critical illness insurance premiums. Learn more about this option on our website, and reach out to get a quote started today.

Recommended Reading: How Does Critical Illness Insurance Work in Canada?


Disclaimer: CAA Health & Dental insurance, CAA Term Life insurance and CAA Critical Illness insurance are underwritten by Canadian Premier Life Insurance Company. Securian Canada is the brand name used by Canadian Premier Life Insurance Company and Canadian Premier General Insurance Company to do business in Canada.