Critical Illness insurance was pioneered by a heart surgeon, Dr Marius Barnard, in 1983. Dr Barnard recognized that due to medical advances his patients were surviving illnesses they would previously have died from. He also witnessed firsthand the financial impact this survival had on his patients with the unforeseen expenses that arose due to the illness. He sought a solution to help future patients and worked towards an insurance product that paid out not on death, but on the diagnosis of a critical illness.

Critical Illness insurance is a coverage that pays you a tax-free predetermined lump sum if you were diagnosed with a covered illness such as a heart attack, stroke, or life-threatening cancer. You can use the money however you want. For example, this can help with out-of-pocket expenses that might not be covered by OHIP or to pay for treatment outside Canada, or to make your home more accessible. It can supplement your disability insurance and can help allow for your spouse to take time off work. The money is yours to spend as you please.

Most policies cover 25+ different illnesses. You can choose a term policy such as a 10-year or 20-year policy or you can purchase coverage that will provide guaranteed rates over your lifetime. You select the amount of coverage generally starting at $25,000 in coverage and up.

Critical Illness policies come with more than just a financial payout, some include expert medical assistance to provide a second opinion and explain treatment options. Some include support to arrange medical appointments and to help set up home care.

Some insurance companies offer a Return of Premium Rider. You pay a extra for this, but then if you make it to the end of your term without having made a critical illness claim, your premiums are all returned to you. Or if you pass away without making a claim, your Critical Illness premiums are returned to your beneficiary.

Critical Illness insurance coverage can help financially, so that you can focus on your recovery knowing you have money to help with the extra expenses that might arise if you suffered a critical illness.