Critical illness insurance
Critical illness insurance: a lump sum at diagnosis
At diagnosis of a covered illness, you receive a tax-free amount to use as you wish: care, time off, help at home, debts. No requirement to be unable to work.
- Tax-free amount paid in a single payment
- Up to 25 or more covered conditions depending on the insurer
- Return of premium option if no claim
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What is critical illness insurance?
Critical illness insurance pays a tax-free lump sum if you are diagnosed with a condition covered by the contract and survive the survival period (usually 30 days). You then decide freely how to use the money.
Basic contracts cover the four most frequent conditions — cancer, heart attack, stroke and coronary bypass — and comprehensive contracts cover up to 25 or more, with partial payments for certain less severe conditions.
At a glance
- Benefit
- Lump sum, one payment
- Amounts
- $10,000 to $2M depending on the insurer
- Term
- 10, 20 years, to age 75 or lifetime
- Survival period
- Usually 30 days
Free · No obligation · An advisor compares insurers for you
How it works
- 1
You choose the amount
Often one to two years of income, or enough to cover a year of treatment expenses: time off, travel, help, mortgage.
- 2
You choose the term and conditions
Basic contract (4 conditions) or comprehensive (25+); 10 or 20-year term, to age 75 or lifetime; child and return-of-premium options.
- 3
At diagnosis, you claim
A specialist confirms the diagnosis according to the contract definition; after the survival period, the insurer pays the amount.
- 4
You use the money freely
No receipts to provide, no income-loss condition. The amount can supplement disability benefits or let your spouse take time off work.
Advantages
- Tax-free amount, paid even if you keep working
- Complete freedom of use: private or out-of-province treatment, time off, caregiver, home adaptation, debts
- Complements disability insurance, which only covers loss of income
- Return of premium at death, expiry or cancellation (optional): if you never claim, you get your premiums back
- Partial payments (often 15-25%) for early-stage cancers and certain procedures, without reducing the main coverage
- Medical assistance services (second opinion, navigation) often included
Things to consider
- Only conditions defined in the contract are covered, under precise medical definitions: a very localized cancer may only qualify for a partial payment
- 30-day survival period: no payment if death occurs before (life insurance takes over)
- 90-day moratorium for cancer at the start of the contract with most insurers
- Family and personal history reviewed at underwriting; exclusions possible
- Premium rises significantly with age at purchase; term versions renew at a higher premium
Options and riders
These options change the premium, but several turn critical illness insurance into a planning tool rather than just protection.
Return of premium at expiry or cancellation
After a set number of years (often 15 years or at age 65), you can cancel and recover all premiums paid if you never claimed.
Return of premium at death
If you die without having claimed, premiums paid are refunded to your beneficiaries.
Child rider
Covers your children for severe childhood illnesses (cancer, type 1 diabetes, cystic fibrosis, etc.), with conversion at adulthood.
Waiver of premium
On disability, the insurer pays the premiums.
Conversion
A 10 or 20-year term can be converted to coverage to age 75 or lifetime, without evidence of health.
Loss of independence benefit
Some contracts pay a monthly benefit if you can no longer perform activities of daily living, in addition or as a replacement.
Critical illness or disability?
Two different protections that complement each other: one for the shock of diagnosis, the other for lasting loss of income.
| Criterion | Critical illness insurance | Disability insurance |
|---|---|---|
| Trigger | Diagnosis of a covered condition | Inability to work (illness or accident) |
| Benefit | Single lump sum | Monthly benefit until return to work or age 65 |
| Income condition | None; paid even if you work | Loss of income required |
| Use | Free: care, time off, debts, caregiver | Replace salary |
| Ideal for | Everyone, including stay-at-home parents and active retirees | Anyone who lives from their work |
Who is it for?
- Families where both incomes are needed, so a spouse can take time off
- Self-employed workers and business owners, who cannot stop working without consequences
- People with a family history of cancer or heart disease
- Anyone who wants the option of fast treatment, privately or abroad
- Parents who want to protect their children against severe childhood illnesses
Options to compare with your advisor
Trademarks of their respective owners. Sommet Protection is not affiliated with any insurer and does not distribute any product.
How it works
- 1
Request your callback
Your coverage, your first name, your mobile: three answers are enough. The rest is optional.
- 2
An advisor contacts you
Your request goes to one partner advisor, who calls you at a time that suits you. You follow the progress live.
- 3
Receive your scenarios
You get clear options, with the advantages and limits of each. You decide.
Frequently asked questions
Which conditions are covered?
Basic contracts cover cancer, heart attack, stroke and coronary bypass. Comprehensive contracts add, among others, multiple sclerosis, Parkinson's, Alzheimer's, kidney failure, blindness, deafness, paralysis, severe burns, loss of independence and major organ transplant. Each condition is precisely defined in the contract.
How much coverage should I choose?
A common benchmark is one to two years of income, or an amount that covers lost earnings and expenses for a year of treatment. Your advisor adjusts based on your group plan, disability insurance and savings.
Is the benefit taxable?
No, the lump-sum benefit paid to an individual is tax-free.
What is the survival period?
You must survive 30 days (sometimes less) after diagnosis for the benefit to be paid. If death occurs before, life insurance steps in — which is why holding both makes sense.
Can I get my premiums back if I never get sick?
Yes, with the return-of-premium-at-expiry or cancellation option: after the set period, you can cancel the contract and receive all premiums paid. It is one of the most popular options.
Does my family history prevent me from applying?
Not necessarily. The insurer looks at the number of close relatives affected and their age at diagnosis. Depending on the case, it may accept, apply a rating or exclude a condition. The younger you apply, the easier acceptance is.
Is there a medical exam?
Depending on amount and age: questionnaire, blood test or paramedical exam. Some insurers offer simplified versions for smaller amounts.
Complementary coverage
Our coverage
Choose the coverage you're interested in — your advisor can also combine them.
Life insurance
Term, permanent, universal, participating or simplified issue: understand the differences, then let an advisor compare insurers for you. Free and without obligation.
Learn moreTerm life insurance
Cover your mortgage, your debts and your family's income for a specific period. Your advisor compares terms, premiums and options from several insurers.
Learn morePermanent life insurance
Coverage designed to last a lifetime, provided the policy stays in force. Depending on the product, premiums and cash values may be guaranteed or variable.
Learn moreUniversal life insurance
Lifetime insurance paired with an investment account you control. You decide the amount deposited, the funds selected and the pace of deposits, within tax limits.
Learn moreParticipating life insurance
Permanent insurance whose death benefit and value increase each year through dividends paid by the insurer — without you having to manage investments.
Learn moreSimplified issue life insurance
A few health questions, no blood test, no medical appointment. Coverage that stays accessible even if you were declined elsewhere or have a health history.
Learn moreDisability insurance
Illness or accident: your ability to earn an income is your most valuable asset. Disability insurance pays you a monthly benefit while you recover.
Learn moreSommet Protection is a marketing company: it is neither a firm nor an insurer, does not sell insurance and gives no advice. This site does not allow you to purchase insurance online. Your request is passed on to an independent, AMF-certified partner financial security advisor who will contact you to analyze your needs. Eligibility and premiums are established by the insurer after reviewing your file. Product descriptions are provided for information purposes and do not replace the insurance contract, which alone prevails.