CRITICAL ILLNESS INSURANCE QUOTE AND INFORMATION

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Get a Critical Illness Insurance Quote Today or ask Questions

    Why Choose LSM Insurance For Critical Illness Insurance

    Term 1
    #1 Independent MGA in Canada
    Term 2
    15 offices across Canada, 220 dedicated employees
    Term 3
    $6B in managed assets
    Term 4
    56,000 applications processed per year

    Sample Critical Illness Insurance Quotes

    Female, 45 years old, non-smoker, no serious health pre-conditions, coverage amount $500,000, Term 10 Critical Illness Insurance

    Best quote: $295 per month

    Male, 35 years old, non-smoker, no serious health pre-conditions, coverage amount $250,000, Term 15 Critical Illness Insurance

    Best quote: $96 per month

    Female, 32 years old, non-smoker, no serious health pre-conditions, coverage amount $250,000, Term 25 Critical Illness Insurance

    Best quote: $101 per month

    Critical Illness Insurance: Expert explains

    Lorne Marr from LSM Insurance shares his experience:

    “Critical Illness Insurance provides coverage in the event that you develop a critical illness like cancer, stroke, heart disease. This type of coverage pays a lump sum on a tax-free basis and it comes with a variety of coverage levels in terms of getting $100,000, $200,000, $500,000. The higher the amount of critical illness [coverage], obviously, the higher is the amount of your premiums and you can have a term policy critical illness where the rates start off lower or permanent policy where your rates start off higher but then they are level for life. Some critical illness policies even offer return of premium, so if you stay healthy, you get back all your premium which is a nice feature for a lot of people but it can add a lot to your initial premium.”

    Interested in Critical Illness Insurance or have questions?

    What is Critical Illness Insurance?

    Critical illness insurance is a special type of policy that pays you a lump sum should you be diagnosed with particular illnesses. It is up to you to decide how you will spend this lump sum – for your medical treatment or simply at your discretion. Critical illness insurance is not the same as disability insurance, which provides regular monthly payments.

    Critical illness cases are clearly defined in an insurance policy and can include just heart attack, cancer and stoke, or 25+ illnesses.

    When do you Need Critical Illness Insurance?

    Critical illness is an insurance product that allows you to personally decide what level of coverage you need. Some of the cases when people choose critical illnesses insurance  include:

    • Having a family, especially with kids – should something happen to the main income earner, there should be some financial reserve for medical treatment and also for the family’s expenses.
    • Having some history of critical illnesses in the family. Note that in this case, your rates might be significantly higher.
    • In some cases, such as when you have your own company or startup, you might have difficulties getting disability insurance. Although critical illness insurance covers different risks, it reduces your overall risk.
    Interested in Critical Illness Insurance or have questions?

    How does Critical Illness Insurance Compare to Disability Insurance?

    Here is a brief comparison how critical illness insurance compares to disability insurance.

     Critical Illness InsuranceDisability Insurance
    PurposeLump sum that can be used in any way the beneficiary wantsCovers part of the beneficiary’s lost income due to a disability
    Coverage PayoutOne time lump sumRegular monthly payments
    StackableYesNo

    Standard vs No Medical Critical Illness Insurance

    There are two main types of critical illness insurance: standard (or medically underwritten) and no medical. Medically underwritten critical illness is the best choice for people in good health, and no medical critical illness is often chosen by people with medical issues.

    No medical critical illness insurance has two sub-categories: simplified – for people with some medical issues, and guaranteed issue – for people with serious or many health issues.

    Here is a summary of the key aspects for each critical illness insurance type:

    Standard / Medically Underwritten Critical Illness InsuranceNo Medical, Simplified Issue Critical Illness InsuranceNo Medical, Guaranteed Issue Critical Illness Insurance
    Medical testsYesNoNo
    Long questionnaireYesNoNo
    Short questionnaireNoYesNo
    CoverageHighestMediumLow
    Costs for the same amount of coverageLowestMediumHighest

    Further below you will find sample monthly rates for each insurance type (as of June 2021)

    Critical Illness Insurance Rates

    Critical illness insurance rates are determined through numerous aspects, such as:

    • Coverage (the lump sum you receive should you be diagnosed with a critical illness).
    • Your age and personal profile – the older you are, the more likely you are to get a critical illness.
    • You and your family’s medical history.

    In general, critical illness insurance costs are higher than term life insurance costs.

    Given that there are different critical illness types as mentioned above, critical illness insurance rates vary. It is also important to mention that each insurance type comes with its own number of medical questions (except for guaranteed issue, which has no questionnaire) and number of illnesses covered. Here is a comparison of rates from sample companies.

    Standard / Medically Underwritten Critical Illness InsuranceNo Medical, Simplified Issue Critical Illness InsuranceNo Medical, Guaranteed Issue Critical Illness Insurance
    Number of medical questions asked5216none
    Illnesses covered251623
    Female, age 25, non-smoker, coverage of $50,000$30.96$31.23$40.80
    Female, age 55, non-smoker, coverage of $50,000$96.35$89.55$156.60
    Male, age 25, non-smoker, coverage of $50,000$33.62$33.66$40.80
    Female, age 55, non-smoker, coverage of $50,000$133.88$135.45$156.60

    Source: Medically underwritten Critical Illness Insurance rates are from Canada Life, Simplified Issue Critical illness insurance rates are from Assumption Life, and Guaranteed Issue Critical Illness Insurance rates are from Edge Benefits.

    Interested in Critical Illness Insurance or have questions?

    Critical Illness Insurance Claims: Statistics

    Sadly, critical illness can affect any one of us, no matter what age or gender. It usually strikes when we expect it at the least, and it unfortunately does happen to many. Canadians are more likely to experience a critical illness than they are to die before the age of 75. Here is a breakdown on leading causes for critical illness insurance claims:
    70% – Cancer
    14% – Heart attack
    5% – Stroke
    5% – Other
    4% – Coronary artery bypass surgery
    2% – Multiple sclerosis

    What to look for when getting a Critical Illness Insurance policy

    • Exclusions: Almost all contracts on the market are being systematically updated with other exclusions, such as self-mutilation and cancer diagnosis within the first 90 days of the contract taking effect.
    • Financial coverage: The amount of critical illness insurance you can purchase and the age of the insured person varies from company to company. Ask your broker to find out and suggest what is most beneficial for you.
    • Type of protection and durations: Is the amount of coverage fixed or does it decrease as time goes? Also find out whether the premiums increase over time. Term policies allow you allow maximum short-term protection according to your available budget. Many policies also offer a return of premium option if a claim is not made.
    • Illnesses covered and restrictions: Find out if all the standard medical conditions are covered by your insurance policy, for example: Heart attack, stroke, coronary artery bypass, cancer, kidney failure, organ transplant, major organ failure on waiting list, multiple sclerosis, blindness, deafness, coma, Alzheimer’s disease, Parkinson’s disease, speech loss, loss of limbs, paralysis and so on. For restrictions, find out the number of days the condition is required to persist for you to be eligible for the claim. As an example, some insurance companies require 180 days in the case of paralysis, while others only 90.

    3 Critical Illness Insurance loopholes to know

    Here are three little known Critical Illness Insurance loopholes that you must be aware of.

    1. Guaranteed renewable policies versus non-cancelable coverage. There is an increasing number of Critical Illness providers in Canada who offer guaranteed renewable Critical Illness coverage. These policies differ from non-cancelable policies in that the premiums may be adjusted on a class line basis. Non-cancelable policies offer guaranteed premiums for the life of the policy.

    2. Many Critical Illness policies carry exclusions for past medical conditions. For example, if the insured has hearing issues, there may be an exclusion on a loss of hearing payout.

    3. Be careful not to use Critical Illness coverage instead of Disability Insurance. Both Disability and Critical Illness insurance coverage separate needs and many disabilities, such as back or knee related injuries, which would be covered under a traditional disability insurance policy would not be covered under a Critical Illness plan.

    Interested in Critical Illness Insurance or have questions?

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