This page covers how critical illness policies differ between insurers and who sells them in Canada. How the product works (the lump sum on diagnosis, the survival period, exclusions and who benefits most) is covered in critical illness insurance in Canada, and the rest of the hub is in the health and income protection hub.
A critical illness payout is cash to use on anything: treatment a provincial plan doesn’t cover, travel for specialized care, mortgage payments during recovery or the gap before long-term disability insurance starts paying.
Which conditions drive claims
A few conditions account for most critical illness claims, and basic plans focus on those.
| Source | What it reports |
|---|---|
| Canadian Institute of Actuaries, individual critical illness experience study (policy years 2012 to 2020, 11 contributing insurers), as reported by Insurance Portal in September 2024 | Cancer was 67% of claims by lives insured, and heart attack was the next most common claim, ahead of stroke and coronary artery bypass surgery |
In practice, a critical illness policy is largely cancer and heart coverage, and the definitions of those conditions matter more than the length of the condition list.
Where policies differ
| Feature | What to compare |
|---|---|
| Covered conditions | Basic plans cover a few conditions (Canada Protection Plan’s no-medical plans cover heart attack, stroke, three heart surgeries, cancer, aplastic anemia and benign brain tumour); comprehensive plans cover many more (RBC Insurance’s covers 26) |
| Condition definitions | Especially the cancer definition: which early-stage cancers are excluded, and how heart attack is defined |
| Early-stage benefits | Some plans pay a partial benefit for early-stage conditions without reducing the main benefit |
| Survival period | How long you must survive after diagnosis before the benefit is paid (RBC Insurance sets 30 days for some conditions) |
| Cancer waiting period | Whether a cancer diagnosed soon after the policy starts is excluded (at RBC Insurance, a cancer diagnosed in the first 90 days permanently excludes future cancer claims) |
| Term options | For example, RBC offers 10, 15 or 20-year terms renewable to age 75 and level premiums to age 75 or 100; PolicyMe offers 10 to 30-year terms |
| Riders | For example, return of premium and disability waiver of premium |
| Underwriting | Full health questions, sometimes an exam; no-medical plans offer lower maximums |
Two current examples show the range. RBC Critical Illness Insurance covers 26 conditions, pays $25,000 to $3,000,000, sets a 30-day survival period for some conditions and has a 90-day symptom-free period for cancer. PolicyMe’s online policy covers 27 critical illnesses and 17 early-stage conditions, with $10,000 to $1,000,000 of coverage and terms of 10, 15, 20, 25 or 30 years (RBC’s page checked October 2026, PolicyMe’s September 2026; confirm current features before buying).
Who sells critical illness insurance in Canada
The contributors to the Canadian Institute of Actuaries claims study give a fair picture of the individual market: Assumption Life, Beneva, Canada Life (which absorbed Great-West Life and London Life on January 1, 2020), Co-operators, Humania Assurance, iA Financial Group, Manulife, RBC Insurance, Sun Life and Wawanesa. Beyond those advisor-sold policies:
- Online: PolicyMe sells critical illness coverage with an online application, issued by Canadian Premier Life Insurance Company (operating as Securian Canada).
- No-medical: Canada Protection Plan, a Foresters Financial brand, sells no-medical critical illness plans focused on cancer and cardiac conditions, up to $100,000.
Prices for the same coverage differ between insurers and change over time, so compare quotes for your own age and health rather than relying on published samples.
Term vs. permanent CI: which makes more sense?
| Factor | Shorter term (for example, 10 years) | Level premiums to a set age (for example, 75) |
|---|---|---|
| Premium | Lower at the start | Higher |
| Coverage expires | At the end of the term, unless renewed | At the set age |
| Ideal for | Covering the working years when financial obligations peak | A longer-lasting need |
Adding return of premium raises the cost in exchange for a refund in set circumstances; whether that trade is worth it depends on how long you expect to keep the policy.
What CI insurance does NOT cover
- Conditions that do not meet the precise definition in the policy wording
- Conditions you had or showed symptoms of before the policy was issued, where the policy excludes them
- Death before the survival period ends (life insurance covers this)
- Disability that doesn’t involve a listed covered condition (disability insurance covers this)
- Early-stage cancers that the policy’s cancer definition leaves out, unless the plan has an early-stage benefit
- Standard exclusions such as self-inflicted injury and misuse of drugs
Read the definitions section of any CI policy before purchasing. The “cancer” definition is the most important clause in most CI contracts.
How much coverage to buy
How to size a critical illness benefit is covered in the critical illness guide. Life insurance is sized separately; see how much life insurance you need.
Frequently asked questions
What are the most commonly claimed critical illness conditions in Canada? Cancer, by a wide margin, followed by heart attack and stroke. In the Canadian Institute of Actuaries study, cancer was 67% of claims by lives insured. This concentration means CI insurance is, in practice, largely cancer coverage.
Can I get critical illness insurance if I’ve had cancer? It depends on the type, stage and time since treatment. Fully underwritten policies may decline the application or exclude the cancer, and some no-medical plans, such as Canada Protection Plan’s, say cancer survivors may be eligible. A broker that compares many insurers, such as PolicyAdvisor, can check which insurers will consider the case.
Does CI insurance pay if I survive the illness? Yes. Critical illness insurance pays a tax-free lump sum when you are diagnosed with a covered condition and survive the survival period (for example, 30 days for some conditions under RBC’s plans). The payment does not depend on your ability to return to work.
Related pages
Sources
The figures and rules on this page come from these sources, last checked against them on September 25, 2026. How we check facts.
- Canada Life: Amalgamation
- Canada Protection Plan: Critical Illness Insurance | Quick Quote Online | Canada Protection Plan
- insurance-portal.ca: Critical illness insurance: cancer and heart attack dominate claims - Insurance Portal
- PolicyMe: Critical Illness Insurance: Get Covered, Stay Protected | PolicyMe
- RBC: Critical Illness Insurance | RBC Insurance
- RBC: Critical Illness Insurance | RBC Insurance