Serious illnesses like cancer, heart attacks, and strokes are becoming alarmingly common—current estimates suggest that 1 in 5 Canadians will face one of these conditions in their lifetime. The encouraging news is that survival rates keep improving. The downside is that recovery typically takes one to two years, during which most people either can’t work or must accept a sharply reduced income. Without a plan, that gap can devastate your finances, derail future goals, and erode hard-earned savings.
Critical illness insurance offers a practical solution. We recommend coverage equal to one to two years of your salary. For example, if you earn $80,000, consider up to $160,000 of protection. If you’re diagnosed with a covered condition, the policy pays that lump sum—tax-free—so you can focus on recovery, not bills. If you stay healthy, you receive a full refund of your premiums at retirement. It’s truly a win-win.
“But I already have coverage through work.” Maybe—but most group plans we review provide only $10,000 to $20,000 of critical illness protection. That falls far short of what you’d need, and the benefit may disappear if you change employers. Supplementing (or replacing) your workplace coverage ensures you’re properly protected, no matter where your career takes you.
