How it works
On diagnosis of a covered condition, and after a short survival period, the policy pays a single tax-free lump sum. The benefit is not tied to specific expenses, so it can be used however the family needs.
What is typically covered
Cancer, heart attack, and stroke are the most commonly covered conditions and account for the large majority of claims. Each policy lists its own set of covered conditions and the medical criteria for each.
Typical cost
The premium varies with age, the coverage amount, the number of conditions covered, and health. Smaller coverage amounts and shorter terms generally cost less.
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Book my free review →Frequently asked questions
What does critical illness insurance pay?
A tax-free lump sum on diagnosis of a covered condition, after a short survival period. The money can be used for any purpose.
What conditions are covered?
Cancer, heart attack and stroke are the most common, and account for most claims. Each policy lists its own covered conditions and criteria.
How much does it cost?
The premium depends on age, the coverage amount, the number of conditions covered, and health.
Is the payout taxed?
When the policy is personally owned, the lump sum is generally received tax-free.
Related pages
This page is for general educational purposes only and does not constitute personalized financial, tax, legal or accounting advice. Figures, limits and coverage ranges are illustrative and change over time - verify current terms before acting. Insurance and registered-account eligibility is subject to underwriting and government rules. Compensation is disclosed in writing before any application is signed. Neelesh Kumar is a Licensed Life & Health Insurance Agent regulated by FSRA - verify at fsrao.ca. © 2026 Wealthready · FinanceWithNeelesh · Kitchener, Ontario.