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Best critical illness insurance companies in Canada – Updated 2023
We researched the best critical illness insurance in Canada so you don’t have to. Learn what critical illness insurance is, which companies offer basic and enhanced coverage, and why one should choose one company’s coverage over another.
Just like you, when we began looking for reviews for the best critical illness insurance in Canada, our search turned up short. We figured we needed to provide Canadians with an informed checklist of what to look for when choosing their critical illness insurance provider. PolicyAdvisor.com lets you stringently compare and shop for the best insurance quotes in Canada, and we now extend our evaluation expertise to critical illness insurance reviews.
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What is critical illness insurance?
Critical illness insurance is a living benefit insurance policy that pays out a tax-free lump sum if you develop a specified illness, experience a major health event, or undergo treatment while under its coverage.
Like life insurance, critical illness or CI insurance is also available in term or permanent options. Term critical illness insurance covers you for a fixed period or “term”. Permanent critical illness insurance covers you until death (though you can pay the premiums for the policy upfront, typically over a duration of 10 or 20 years).
The lump-sum payout is also called a living benefit because it does not depend on whether you have recovered or not. Instead, it is paid out while you are living, once you have been diagnosed with a specified illness or gone through certain health incidents (e.g. a heart attack, etc).
But depending on the health condition and the insurance provider, you may have to survive for a certain amount of time (known as the survival period) before you are eligible for the payout.
Why should I get critical illness insurance?
Simply put, you get critical illness insurance to give yourself or your loved ones a financial cushion should you contract a serious illness or undergo a serious medical incident.
Whereas life insurance products provide long-term financial support for your loved ones should you pass away, critical illness insurance is intended for you or your family to be able to use while you are still alive and hopefully recovering. This is why CI, like disability insurance and long-term care insurance, is considered a living benefit, while life insurance is considered a death benefit.
Now more than ever, critical illnesses are common in Canada. There are over 200,000 cancer diagnoses a year and 50,000 strokes. While survival rates for critical illnesses like these (or others like heart attacks) are increasing, the recovery period can still be daunting and require massive changes in your lifestyle and day-to-day needs.
Recovering from a severe condition can add dramatically to your living expenses. Unexpected additional funds may be needed for specialized healthcare or even home modifications, in some cases. The added financial strain sometimes forces people to return to work sooner and can contribute to the recurrence of the illness. Having coverage for a critical illness can help with the loss of income while you’re recovering at home, and help relieve some of that financial burden.
Canadians are protecting themselves with critical illness insurance to plan for these scenarios. With CI, where they may need to take time off to recover, and can use the financial resources to pay for treatment or medical equipment and home outfitting required in such circumstances.
How does critical illness insurance work?
Critical illness insurance pays out a lump-sum benefit after the diagnosis of one of the medical conditions covered by the plan, following a minimum survival period — typically 30 days.
Different plans and options offer varying amounts and types of coverage:
- Monetary: from $10,000 to $3 million
- Conditions covered: from 1 to more than 25
- Survival period: 0, 30, 60, or 90 days
- Term: from a 10-year term to coverage that lasts your lifetime
Lastly, some illnesses – while still serious – are not considered critical illnesses but might still be eligible for a partial payment of up to 30%. With some – but not all – policies you can make multiple partial claims with varying effects on your eligibility for a full payment further down the road if you do end up contracting a serious illness or ailment.
What does critical illness insurance cover?
Most critical illness insurance or riders cover up to 26 conditions:
Cancers and Tumours:
Cardiovascular:
- 3. Aortic Surgery
- 4. Coronary Artery Bypass Surgery
- 5. Heart Attack
- 6. Heart Valve Replacement or Repair
- 7. Stroke (Cerebrovascular accident)
Neurological:
- 8. Bacterial Meningitis
- 9. Dementia, including Alzheimer’s Disease
- 10. Motor Neuron Disease
- 11. Multiple Sclerosis
- 12. Parkinson’s Disease and Specified Atypical Parkinsonian Disorders
Vital Organs:
Accident and Functional Loss:
- 16. Acquired Brain Injury*
- 17. Blindness
- 18. Coma
- 19. Deafness
- 20. Loss of Independent Existence
- 21. Loss of Limbs
- 22. Loss of Speech
- 23. Paralysis
- 24. Severe Burns
Other:
Read more about what critical illness insurance covers.
What are the best critical illness insurance companies in Canada?
PolicyAdvisor.com has painstakingly researched the insurance companies that offer the best critical illness insurance plans in Canada. Years of profiling and analyzing the industry’s top offerings gives us the unique opportunity to review the country’s best critical illness insurance companies and present you with a list of the top insurance offerings available in the category. The following reviews are a must-read for anyone thinking about purchasing critical illness insurance in 2023.
The 14 best critical illness insurance companies in 2023 are:
- Best for simple coverage: Assumption Life
- Most comprehensive for price: BMO Insurance
- Rolls Royce of coverage: Canada Life
- Best for extensive coverage: Desjardins
- Best for couples: Empire Life
- Best for families: Equitable Life
- Best for built-in features: Foresters Financial
- Best for children: Humania
- Best for flexibility: iA
- Best for bundling: ivari
- Best for combo product: Manulife
- Best for combination long-term care: RBC Insurance
- Best for mutual: Beneva (formerly SSQ)
- Best for brand recognition: Sun Life
AM BEST RATING
A-
POLICYADVISOR RATING
Best Critical Illness for Simple Coverage
Assumption Life Critical Illness Insurance Review
The maximum amount of coverage (aka sum insured) offered by Assumption Life’s Critical Protection insurance policy is lower than its rivals. However, it does offer enhanced products, including a Return of Premium Upon Death rider as well as a Flexible Return of Premiums rider. Also, although this product is fully underwritten, Assumption Life does not automatically require a medical exam for all levels of coverage.
With 16 illnesses covered, this is a great, simple option for someone looking to cover the basics, with a few optional bells and whistles too.
Pros
- Quick, easy electronic process – instant approval possible
- Medical exam not automatically required for all coverage amounts
- Online access to account
- Digital e-policy
- Shorter-term coverage options available
- Limited pay and return of premium options available
Cons
- Limited number of covered conditions (16 conditions) and coverage amounts (max of $100,000)
- No partial payment for non-life-threatening illnesses
- No children’s coverage
- No whole life coverage
AM BEST RATING
A
POLICYADVISOR RATING
Most Comprehensive Critical Illness Insurance for Price
BMO Critical Illness Insurance Review
As one of Canada’s largest financial institutions, BMO can take advantage of its heft and economies of scale to offer clients comprehensive, customizable critical illness coverage at the best prices through its Living Benefit suite of products.
Pros
- Comprehensive: 25 critical illnesses covered
- High coverage amounts available
- Multiple terms available, including whole life coverage
- Limited pay and return of premium options available
Cons
- No online access
- No children’s coverage available
- No second event coverage
AM BEST RATING
A+
POLICYADVISOR RATING
The Rolls Royce of Critical Illness Coverage
Canada Life Critical Illness Insurance Review
If you are sparing no expense, Canada Life’s plans offer something for everyone. Most coverage terms, riders, child policies, and all the other bells and whistles of a CI insurance policy can be had through Canada Life’s LifeAdvance – at a price, of course. It’s the Uber Black of the category.
Pros
- Large coverage amounts and multiple terms including whole life options
- Comprehensive: 26 covered conditions
- Digital e-policy
- Generous partial benefit payouts
- Limited pay and return of premium options available
- Children’s coverage available
- Second event coverage available
Cons
- No online access
- Loss of independent existence is a separate rider with additional cost
- Return of premium riders are expensive
- Survival period for most conditions
AM BEST RATING
N/A
POLICYADVISOR RATING
Best For Extensive Coverage
Desjardins Critical Illness Insurance Review
Desjardins’ Health Priorities product offers prospective clients a lot of choice in coverage and term. It covers more illnesses for partial payment than most other companies in Canada. However, partial payments count as an advance against your overall payout.
Pros
- The highest number of conditions covered (26 full payout illnesses)
- Digital e-policy
- Generous partial benefit payouts (highest number of covered partial conditions)
- Multiple coverage amounts and multiple terms possible
- No survival period on most conditions (except cardiovascular)
- Permanent coverage and limited pay options available
- Children’s coverage available
Cons
- No online access
- Partial payment is an advance and reduces overall coverage
- No second event coverage: Policy terminates after first claim payout
AM BEST RATING
A
POLICYADVISOR RATING
Best Critical Illness for Couples
Empire Life Critical Illness Insurance Review
With a well-rounded mix of terms and features included in their critical illness insurance plans, Empire Life provides a great, comprehensive product. They also offer what is called a multi-life policy. Couples can apply together for critical illness insurance coverage and get a discount.
Pros
- High coverage amounts available
- Comprehensive: 25 conditions covered
- Multi-life coverage available
- Online access
- Digital e-policy
- Generous partial benefit payouts
Cons
- No limited pay options
- No Return of premium on death (ROPD)
- No coverage for children
AM BEST RATING
N/A
POLICYADVISOR RATING
Best Critical Illness For Families
Equitable Life Critical Illness Insurance Review
Equitable Life of Canada offers multiple term lengths for parents looking to match their coverage to how long they’ll have dependents in their care. Couple that with their options for children’s critical illness coverage and you have a great fit for Canadians looking to get coverage for themselves and their families.
Pros
- Comprehensive: 26 full payout illnesses
- Online access
- Digital e-policy
- Multiple terms available including Term to 100
- Return of premium options
- Children’s coverage available
- Limited pay option available: 20-Pay
Cons
- No second event coverage
- Partial benefit only pays out once
AM BEST RATING
A
POLICY ADVISOR RATING
Best For Built-In Features
Foresters’ Critical Illness Insurance Review
Foresters has refreshed their critical illness insurance offering and made a strong move up the charts. They now offer both basic (Live Well) and enhanced (Live Well Plus) critical illness insurance that covers 4 and 25 illnesses respectively. They include ROPD as standard; however, the time for return-of-premium on cancellation is very long (starts at Year 20). They also have a unique Term 80 option.
Pros
- Partial payment for 8 conditions (15% up to $50,000)
- Access to Foresters’ community benefits
- Digital e-policy
- Return of premium options available
- Unique Term-to-80 option available
- Children’s coverage available (with 5 additional conditions)
Cons
- Partial payout reduces final coverage
- No limited pay options available
- No permanent coverage
AM BEST RATING
—
POLICY ADVISOR RATING
Best Critical Illness Insurance for Children
Humania Critical Illness Insurance Review
If you’re looking for a policy that offers the most comprehensive coverage that also includes children, Humania is the company to beat. Humania’s Children360 critical illness covers 37 conditions, including several that are specific to children. Humania also offers a compassionate allowance for grieving parents if that unfortunate situation does occur.
Pros
- Comprehensive conditions covered: 25 full payout illnesses
- Multiple coverage terms available
- Children’s product (Children360) with 37 covered conditions
- Digital e-policy
- Parental compassionate allowance
- Return of premium options
Cons
- Limited partial payment benefit (only 3 covered conditions)
AM BEST RATING
A+
POLICY ADVISOR RATING
Best Critical Illness Insurance for Flexibility
iA Critical Illness Insurance Review
Industrial Alliance’s Transition plan is a great all-around critical illness insurance policy with one key differentiating factor: flexibility. With so many add-on and rider options that match or beat other companies’ offerings, Canadians can tailor-fit a critical illness policy suited to their exact needs. Policyholders also have a “reducing” option that gradually decreases the overall amount of the benefit payment over its early years until it reaches 50% of the original benefit amount. Industrial Alliance is a perfect fit for those looking to use critical illness insurance to cover mortgage payments.
Pros
- Comprehensive conditions covered: 25 full payout illnesses
- Multiple terms available
- Lifetime coverage and limited-pay options available
- Children’s coverage available
- Guaranteed insurability rider (increase coverage when needed)
- Decreasing option for mortgage coverage
- Generous partial benefit payouts
- Instant approval possible
- Online access
- Digital e-policy
- Multiple lives under one coverage
Cons
- No second event coverage
- No long-term care conversion option
AM BEST RATING
A+
POLICY ADVISOR RATING
Best Critical Illness Insurance for Bundling
ivari Critical Illness Insurance Review
If you’re the type to keep all your services with one company, ivari’s critical illness insurance is for you. You can add $2 million in critical illness coverage as a rider to an existing life insurance plan and save up to 15% on your premiums. Brand loyalty pays off with ivari insurance!
Pros
- Discounts for bundling services
- Comprehensive conditions covered: 25 full payout illnesses
- Children’s coverage available
- Online access
- Digital e-policy
Cons
- No limited pay options
- No second option
- No permanent coverage
AM BEST RATING
A+
POLICY ADVISOR RATING
Best Critical Illness Insurance Combo Product
Manulife Critical Illness Insurance Review
The Big Mac, Coke, and fries of critical illness insurance — Manulife’s Lifecheque is the combo to beat. With a good mix of coverage and term lengths backed by one of the most trusted names in insurance, no wonder Manulife is synonymous with financial protection.
Pros
- Large coverage amounts available (up to $2 million)
- Multiple coverage terms available (including permanent coverage)
- Comprehensive coverage: 25 full payout illnesses
- Generous partial benefit payouts
- Return of premium and limited pay options available
- Payment for temporary loss of independent existence
- Children’s Lifecheque rider available
- Online access
- Digital e-policy
Cons
- Return of premium options are expensive
- Only offer monthly payments for loss of independent existence
- No second event coverage available
AM BEST RATING
A
POLICY ADVISOR RATING
Best Critical Illness Insurance/Long-Term Care Combo Product
RBC Critical Illness Insurance Review
With Canadians living longer than ever, those shopping for critical illness insurance may also have long-term care on their minds. Fortunately, RBC Insurance has the market cornered on those keeping their eye on Father Time. Policyholders can convert their coverage into payments for long-term care when they are older without additional proof of insurability.
Pros
- Large coverage amounts – up to $2 million
- Comprehensive covered conditions: 25
- Long-term care conversion without proof of insurability
- Generous partial benefit payouts
- Online access
- Digital e-policy
Cons
- Limited term options
- No return of premium on expiry or cancellation
- No coverage for children
- No lifetime coverage or limited pay options
AM BEST RATING
A
POLICY ADVISOR RATING
Best Critical Illness Insurance For Those Seeking A Mutual
Beneva Critical Illness Insurance Review
Beneva is the product of a 2020 merger between two major Quebec-based life insurance companies: SSQ Insurance and La Capitale. It offers critical illness insurance with features that compete well with the best plans in Canada. Their youth shows in their easier-to-understand digital materials and website. If community involvement and corporate responsibility are important to you, Beneva might be your first choice. The company is run as a mutualist democracy, which you enter into once you purchase the policy, and thus have a small say in how they are run.
Read our full Beneva Critical Illness Insurance review.
Pros
- Variety of terms available
- Large coverage amounts and conditions covered: 25 conditions
- Lifetime coverage and limited pay options available
- Return of premium options available
- Children’s coverage available
- Digital e-policy
Cons
- Only 4 partial conditions covered, payable once
- No long-term care conversion option
- Return of premium riders are expensive
AM BEST RATING
A+
POLICY ADVISOR RATING
Best Critical Illness Insurance For Brand Recognition
Sun Life Critical Illness Insurance Review
Sun Life is another well-established name in critical illness insurance. Their size and history mean they offer some of the best, most comprehensive coverage for CI except for one key factor: you must submit your application by paper and fully hand-written. For that reason alone, we can’t award Sun Life full marks.
Pros
- The highest number of conditions covered: 26 full-payout illnesses
- Generous partial benefit payouts
- No survival period for most conditions
- Long-term care conversion option
- Permanent coverage and limited pay options available
- Children’s coverage available
- Online application process
- Digital e-policy
Cons
- Limited options for shorter-term coverage
If any of these options seem like a good fit for you, if you would like to explore more options, or if you’re unsure and just want some clarity, reach out to PolicyAdvisor today. Our licensed insurance advisors can help you review your needs and sort out which company and what policy would work best for you.
