Frequently asked questions related to Critical Illness Insurance

Are Critical Illness Insurance payouts taxable in Canada?

Based on the Canada Revenue Agency's current position, benefits paid under individually-owned Critical Illness Insurance policies are generally tax-free.

What is the difference between life insurance and critical illness insurance?

The key difference lies in the benefit trigger. Critical Illness Insurance pays out when you are diagnosed with a covered illness and meet certain conditions, while life insurance pays out to your beneficiaries upon your death.

Are medical questions or exams required to apply for critical illness insurance?

It depends. The necessity for a medical examination or answering health-related questions varies based on factors such as your age, the specific plan you select, and the amount of coverage. You might be required to participate in a telephone interview, undergo medical examinations, and submit relevant medical records.

Can I get my premiums back if I don’t experience a serious illness?

Yes, you can add a return-of-premium benefit to your policy.

How does Critical Illness Insurance compare to Disability Insurance in Canada?

Critical Illness Insurance provides a tax-free, one-time payout if diagnosed with a covered condition, with no waiting period in certain cases. Disability Insurance offers monthly income replacement if you can’t work due to injury or illness, usually with a waiting period. Critical Illness Insurance covers life, while Disability Insurance generally ends at age 65.

Still have questions?

Please contact our office and we'll be happy to address any questions you may have.

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