Critical Illness Insurance: 10 Things to Consider Before Buying

It can sometimes feel scary to even think about critical illness insurance, let alone purchasing it. But the reality is that considering critical illness insurance is one of the best ways to financially protect yourself—and your family.

Not only does insurance protect you against the unexpected, but it can help put your mind at ease knowing that you’re financially prepared. If you are just starting to look around, may have a bunch of critical illness insurance questions like, is critical illness insurance worth it? What conditions are covered by critical illness insurance?

Don't worry we were in your exact same position once too, we’re here to answer your questions—and help you figure out which ones you should be asking—and help provide guidance about the best policy and coverage options for your situation.

‍

What is considered a critical illness?

Critical illnesses typically refer to severe health conditions that are life-threatening or life-altering. They can often be longer-term illnesses and may have serious impacts on the lives of those affected. For example, cancer, heart attacks, strokes, or even mobility loss are often considered critical illnesses.

While most of us are aligned on what’s considered a critical illness, when it comes to insurance, the specific conditions that are covered will depend on the terms of your policy.

What is critical illness insurance?

Let’s face it, critical illnesses are stressful in and of themselves. But they can come with many complications, such as time away from work, unexpected medical expenses, or even a long-term impact on your quality of life. The result is often a heavy financial burden for you and your loved ones.

Critical illness insurance can provide you with a lump-sum benefit if you’re ever diagnosed with a covered severe health condition, subject to the terms of the policy. This payment is often referred to as the living benefit, and the goal is to provide you with financial support for anything that might come as a result of your diagnosis.

By purchasing critical illness coverage, you’re potentially providing you and your loved ones with a financial safety net, just in case anything happens to you.

10 factors to consider when choosing your critical illness insurance policy

With critical illness insurance, there are a lot of different options to choose from. And the truth is, it can feel overwhelming trying to sort out what matters the most.

Taking the time to think about your lifestyle and weigh your needs can go a long way when it comes to finding the right policy for you. So, before you lock in that critical illness insurance policy, here are some questions you should ask and things you should consider.

1. Do you currently have any health conditions?

Critical illness insurance is closely tied to your health and wellness, which is why it’s one of the first things you should think about when it comes to choosing a critical illness insurance policy.

Health-related factors that might make you want to consider critical illness insurance include:

If you have a family history of serious illness
You’re older and more susceptible to severe illnesses
You work in a high-stress or high-risk environment

It’s often beneficial to secure coverage sooner rather than later.

Be sure to disclose your health conditions in your insurance application. Providing false information can result in your coverage being terminated.

2. What is your personal situation?

This can feel like a bit of a broad question, but it’s important to consider your life and the people around you when determining the right critical illness coverage. While the coverage is for you, it can impact the people you love.

Some critical illness insurance-related considerations you may have is how extensive you would like your coverage to be? The more conditions covered, the higher you can expect your monthly rate to be. That is why before signing any contracts, it is always good to reflect on how much critical illness insurance you really need.

As you think about your critical illness insurance needs, here are some questions you may want to ask yourself:

Do you have a partner that relies on your income?
Do you have any financial dependents?
Are you the primary financial contributor in the household? Do your financial contributions impact your living expenses?
Are there any responsibilities, such as childcare, that would need to be outsourced if you were to experience a serious medical emergency?
Do you live somewhere where you’ll need to travel to get major medical care?
Do you have limited health insurance outside of provincial healthcare?

If the answer is yes to any of the above, there’s a good chance critical illness insurance could be a good fit for you.

3. What is your financial situation?

A huge consideration around critical illness insurance is your current financial situation. The biggest reason individuals get critical illness coverage is to provide themselves with a financial safety net.

Your financial situation will determine if you need critical illness insurance or how much coverage you should have—but more on that later in question 5.

If you have a large emergency fund with several months' worth of expenses or don’t have financial dependents, you might choose to forgo critical illness insurance. Or you may be able to opt for a lower coverage amount. That being said, many people still choose to purchase insurance for extra financial protection.

At the same time, critical illness insurance can be a bit of an investment. So, if you have a strict budget, you may not be able to purchase as much coverage as you’d like. Fortunately, there are several flexible options for critical illness coverage, meaning you’ll most likely be able to find a policy that fits your budget.

Find the coverage that suits your budget and purchase critical illness insurance with Blue Cross Life. Get a free, no-obligation quote today.

4. How much does critical illness insurance pay?

If you’re diagnosed with a covered condition, your insurance can pay you a living benefit. The size of this payout can vary drastically and depends on the terms of your individual policy. Coverage, and subsequently the payouts, for critical illness typically range anywhere from $10,000 to $1 million.

When you buy your critical illness insurance, you’ll get to choose exactly how much you want to be insured for. This number will depend on your personal circumstances, current financial situation, and your budget.

With some policies, certain early-stage conditions are only eligible for partial payouts. Because early-stage conditions are considered less severe at diagnosis—even though they may have long-term implications—you may only receive a portion of your total coverage depending on the terms of your policy.

5. How much critical illness insurance coverage do you need?

Everyone’s insurance coverage needs are different. While there’s no set formula for calculating the perfect amount of coverage, there are some strategies that can help guide you in the right direction.

A good starting point is enough to cover six months of income. However, your needs may be different.

To get an estimate of how much critical illness insurance you might need, you’ll want to add up the following expenses:

The cost of replacing your income for at least several months.
How much you’d need to cover your living expenses and debt repayments
If you have any financial dependents.
What illness-related expenses you might face, such as travel, medical equipment, or accessibility accommodations.

‍

If you have savings or investments, you can opt to subtract those from your total estimate to reduce the amount of coverage you need.

Get a critical illness coverage recommendation from a licensed insurance advisor. Book a call.

6. What is covered by the critical illness insurance policy?

Every critical illness insurance policy has different coverage—and we’re not just talking about the coverage amount. Even the list of illnesses that are covered can vary significantly between different policies.

For example, Blue Cross Life Critical Illness Insurance covers as many as 44 conditions, 17 of which are early-stage critical illnesses. When choosing your policy, you should carefully review the list of conditions to make sure they fit your needs.

The last thing you want is to find out that you aren’t covered for a condition you were expecting to be insured for.

With that in mind, the number of covered conditions can also have an impact on your premiums. Typically, the more conditions that are covered, the higher your insurance rates. That’s why many insurers also offer a range of coverage tiers that cover different conditions. If you’re on a budget, it can be a great way to still get some level of coverage without breaking the bank.

Of course, having limited coverage can leave you vulnerable if you experience a non-covered condition.

7. What is not covered by the critical illness insurance policy?

As a general rule, if it’s not listed in your policy, it’s probably not covered.

But if you’ve ever read an insurance policy, you know it can be a bit more nuanced than that. So let’s explore some situations where you may not be covered by your critical illness insurance.

Critical illnesses that aren’t included in your policy: For example, neurological conditions are typically considered critical illnesses, but if they aren’t listed as a covered condition in the terms of your policy, you won’t be eligible to file a claim or receive a payout.
Non-critical illnesses: Some medical conditions can be serious but may not fall under the critical illness category. For example, diabetes or pregnancy complications can be life-threatening, but most critical illness policies don’t cover them. Some other forms of insurance, such as disability insurance may cover these types of conditions if they impact your ability to work.
Pre-existing conditions: Many critical illness policies won’t pay a benefit for conditions or illnesses that stem from a pre-existing condition.
Death: If you pass away immediately or soon after a critical illness diagnosis, you may not be eligible to claim your living benefit. This is where life insurance would kick in. Some critical illness policies may also have a clause that will return any premiums paid if you die while your policy is in effect.
Early-stage coverage: Some early-stage conditions are only partially covered. So, while you may receive a payout, you may not receive the full insured amount.

There are many terms and exclusions that are policy-specific, so make sure to review the ones that are outlined in your critical illness insurance.

8. Is there a waiting period or survival period clause for the critical illness coverage?

For critical illness insurance, a survival period clause or waiting period indicates how long you need to wait before you can submit a claim for a covered condition.

This period varies between policies and insurers and can often depend on the specific condition. Waiting periods can last anywhere from 30 to 90 days. Waiting periods or survival periods typically exist to make sure that there’s a financial need before your claim is paid out.

For example, with Blue Cross Life Critical Illness insurance, there’s no waiting period for 25 of the 44 covered conditions. But with cardiac conditions, there’s a 30-day waiting period. Having short or no waiting periods means you’re able to submit a claim right away and get financial relief faster.

Not all conditions or critical illness policies include a waiting or survival period. Some policies also have other stipulations around when you’re eligible to file a claim. You’ll want to review your specific policy to see if there’s a survival period or waiting period included.

Don’t worry though— if it comes time to submit a claim, your insurance provider can typically walk you through the process to make the claims experience as seamless as possible.

9. How simple is the application process?

Unfortunately, when it comes to insurance, the process of applying for and securing coverage can be as stressful and unnecessarily complicated. But here’s the thing—it really doesn’t have to be.

You can get trusted, comprehensive critical illness coverage without having to physically visit an agent in person.

Many policies, like Blue Cross Life Critical Illness Insurance, have a simple and efficient application process. You can get a quote and apply online in less than 20 minutes. You’ll also find out instantly if you’re approved.

Not only does this mean you can secure coverage faster, but it also makes it easier for you to compare quotes and find the policy that’s the right fit for you.

Blue Cross Life Critical Illness Insurance also makes it possible to apply for term life insurance coverage in the same application, so you can cover all your financial bases in just a few clicks.

But this doesn’t mean you’re left doing it all alone. Our team of expert insurance advisors is ready to help you with personalized insurance advice every step of the way.

10. Is critical illness insurance worth it for you?

For most Canadians, critical illness insurance is worth the investment. Not only does it provide you and your family with financial security, but it also helps put your mind at ease throughout the entire term. It allows you to live comfortably without the constant worry of a medical emergency.

Whether critical illness insurance is worth it is ultimately up to you. But the reasons Canadians love critical illness insurance include:

Financial protection in case something happens to you.
Flexibility to choose coverage that fits your needs and budget.
A tax-free lump-sum payment that can be used for any purpose.
Financial relief so you can focus on recovery.

Get comprehensive critical illness insurance in Canada. Discover how Blue Cross Life Critical Illness Insurance can help you stay prepared for the unexpected. Learn more today.

Critical illness insurance FAQs

Who should get critical illness insurance in Canada?

Whether you should get critical illness insurance depends on your financial circumstances and personal needs. However, you should consider purchasing coverage if:

You’re a parent or have financial dependents such as elderly parents.
You have a partner or someone who relies on your income.
You don’t have health benefits or have limited benefits outside of provincial healthcare.
You have limited savings to cover unexpected expenses resulting from a medical emergency.

What conditions are covered by critical illness insurance in Canada?

The specific conditions covered with critical illness insurance in Canada will depend on the terms of your policy. Critical illnesses are typically life-threatening and serious health issues, but each policy will have a unique list of covered conditions. Commonly covered critical illness conditions in Canada include cardiac events, cancer, and neurological conditions.

Blue Cross Life Critical Illness Insurance covers 44 conditions (27 fully covered conditions and 17 early-stage or partially covered conditions), amongst some of the most comprehensive coverage in Canada.

Can you apply for critical illness insurance online in Canada?

Yes, you can apply for critical illness insurance online in Canada in just a few minutes. Blue Cross Life Critical Illness Insurance makes it easy to secure coverage and file a claim (if diagnosed with a covered critical illness condition) in four easy steps:

Answer some questions and check your eligibility online.
Review your policy if approved, electronically sign, and activate your coverage.
Complete a digital claims form if you’re diagnosed with a covered condition.
Receive your living benefit, subject to the terms of your policy.

Where can you get the most comprehensive critical illness insurance in Canada?

One of the most comprehensive critical illness insurance products in Canada is Blue Cross Life Critical Illness Insurance.

Some of the most comprehensive coverage on the market, with 27 fully covered conditions and 17 early-stage covered conditions.
Flexibility to choose between $10K to $1M in coverage and term lengths from 10 to 30 years.
Easy, online application with expert advisor support where needed.
Two-in-one application to easily apply for Term Life Insurance all at once.

Get a quote for critical illness insurance in 60 seconds or less with Blue Cross Life Critical Illness Insurance. Learn more.