How much do I have in emergency savings?
An emergency fund is designed to act as a buffer for financial emergencies, but medical treatments may deplete it quickly.
Affordable critical illness insurance for Canadians
Prepare for the unexpected with affordable, simple coverage for critical illness.
PolicyMe Perks
PolicyMe Perks44 conditions covered — more than any other provider in Canada
Quick, streamlined online application
Majority of conditions have no waiting period
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
What is critical illness insurance?
Critical illness insurance is an insurance product often paired with life insurance that offers a lump sum payment for Canadians diagnosed with serious medical illnesses or conditions like heart attacks, stroke, cancer, etc. You can use the payout from a critical illness policy to help replace your lost income while you take time off work or to cover out-of-pocket medical expenses.
You might also see critical illness insurance called “critical care insurance” or even “critical life insurance.” It’s often offered as an affordable add-on when getting life insurance quotes or as a standalone policy.
On top of common major diagnoses, PolicyMe insurance offers financial protection for Canadians diagnosed with select early-stage conditions that are detected sooner so that you can start getting better faster.
Coverage for what matters most
PolicyMe covers 44 conditionsin total. Here's a sample of what's included:
Common major diagnoses
- Heart attack
- Life-threatening cancer
- Kidney failure
- Multiple sclerosis
- Stroke
- Coronary bypass surgery
- Major organ transplant
.svg){kind=icon}
Early-stage conditions
- Early-stage cancer
- Early-stage prostate cancer
- Ductal breast cancer
- Coronary angioplasty
Protect your family from the cost of critical illness
91% of Canadians don’t have critical illness insurance
A 2025 RBC Insurance poll found that just 9% of Canadians hold a critical illness policy, despite more than half (57%) saying they worry about being diagnosed with cancer, heart attack, or stroke.
Nearly 1 in 3 Canadians would run out of savings within 6 months of a serious diagnosis
Despite provincial health coverage, many Canadians will face significant out-of-pocket medical costs in the face of a medical health setback — a financial shock many households aren’t equipped to absorb. In fact, Statistics Canada found that 26% of Canadians couldn't cover an unexpected $500 expense, which means the financial buffer for many families facing a serious diagnosis is razor thin.
30% of Canadians say they’d go into debt to cover out-of-pocket cancer costs
A survey by the Canadian Cancer Society found that over two-thirds of Canadians say unexpected monthly cancer-related expenses would make it hard to cover financial basics like rent, mortgage payments, or existing debt. Another 10% said they'd have to borrow money to manage those costs.
Who is critical illness insurance for?
You may need critical illness insurance if you have people in your life who depend on your income or don’t have a significant emergency fund. Being seriously ill often means taking time off work or paying for medical expenses that are not covered by provincial health insurance.
Critical illness insurance provides available financial cushion during that difficult time.
Your childcare costs and living expenses won’t go away if you’re diagnosed with a serious illness — but you might not be able to work through your treatment. Critical illness insurance can help bridge the gap to minimize the impact of your illness on your kids’ lives.
Critical illness insurance is a common workplace insurance benefit, but freelancers and other self-employed Canadians don’t have access to that coverage, despite being highly dependent on month-to-month income.
If you’re reliant on a provincial health care plan for your medical expenses, you may find that many of your bills aren’t covered in the event of a major life-threatening illness.
Being sick is expensive. If you don’t have a large financial security net, a critical illness insurance plan could mean the difference between a drawn-out financial crisis and a temporary hurdle.
How does critical illness insurance work in Canada?
Answer a few questions about your health & lifestyle
Apply for critical illness insurance on its own, or you can apply for term life insurance and see if you’re approved for both at the same time.
Activate your policy when you're ready
Your coverage, your schedule. Once you're approved, read your policy carefully and sign off when you're ready. Payment is only required when you’re ready to hit “go!”
Got a diagnosis? Submit a claim
If ever you're diagnosed with one of the covered conditions, a member of our team will help you along every step of the claim process. Be prepared to wait for the 30-day survival period before you can access your payout.
.avif)
Get a tax-free cash benefit
Once your claim is reviewed and approved, we'll send you a lump-sum payment that you can use to pay for whatever you like, so you can focus on what matters most: your recovery.
50,000+ Canadians trust PolicyMe to protect what matters most
Simple, straightforward insurance designed to support your family and finances in the face of unexpected illness.
PolicyMe critical illness insurance vs. competitors
Features | Other Providers | PolicyMe |
|---|---|---|
Application Online process. Get approved and covered in 20 minutes, on average. | Typically a call or meeting with an advisor and a paper application. | Online process. Get approved and covered in 20 minutes, on average. |
Coverage Amounts 44 conditions covered | $25,000 to $2.5 million, on average | $10,000 to $1 million |
Term Lengths $10,000 to $1 million | Usually 10 or 20 years, or until age 70 or 75 | 10, 15, 20, 25 or 30 years |
Conditions Covered 10, 15, 20, 25 or 30 years | 20-30 conditions covered, on average | 44 conditions covered |
Fully Covered Early-Stage Conditions 27 severe conditions | 24-26 severe conditions, on average | 27 severe conditions |
Partially Covered Early-Stage Conditions 17 early-stage conditions | 0-8 early-stage conditions, on average | 17 early-stage conditions |
Locked-in Rate? 17 early-stage conditions | Yes | Yes |
Convertible? 17 early-stage conditions | Yes | Yes |
Can I apply with my partner? Lump-sum tax-free payout | No, others require separate applications | Yes, one online application for both partners |
Features | Other Companies | PolicyMe |
|---|---|---|
Application Typically; a call or meeting with an advisor and a paper application | Typically; a call or meeting with an advisor and a paper application | Online process. Get approved and covered in 20 minutes, on average. |
Number of Conditions Covered 20-30 conditions covered, on average | 20-30 conditions covered on average | 44 conditions Covered |
Coverage Amount $25,000 to $2.5 million, on average | $25,000 to $2.5M, on average | $10,000 to $1M |
Term Lengths Usually 10 or 20 years, or until age 70 or 75 | Usually 10 or 20 years, or until age 70 or 75 | 10, 15, 20, 25 or 30 years |
Fully Covered Early-Stage Conditions 24-26 severe conditions, on average | 24-26 severe conditions, on average | 27 severe conditions |
Partially covered Early-Stage Conditions 0-8 early-stage conditions, on average | 0-8 early-stage conditions, on average | 17 early-stage conditions |
Payout Details Lump-sum tax-free payout | Lump-sum tax-free payout | Lump-sum tax-free payout |
Locked-in Rate? Yes | Yes | Yes |
Convertible? Yes | Yes | Yes |
Can I apply with my partner? No, others require separate applications | No, others require separate application | Yes, one online application for both partners |
Benefits of a PolicyMe critical illness insurance policy
More conditions covered
27 covered critical illnesses and 17 early-stage conditions; more than any other Canadian insurer
More coverage options
Five unique policy lengths from 10 to 30 years, for up to $1M in coverage
Extensive coverage for early-stage cancers & heart disease
2 in 5 Canadians can expect to be diagnosed with cancer in their lifetime
Backed by Securian Canada
Trust your protection to a federally-regulated insurer with an A+ financial strength rating
Human advice from real experts
Our licensed advisors offer genuine, expert guidance for your family’s situation, Mon-Fri
See for yourself
How much critical illness coverage do I need?
The right amount of critical illness coverage will depend on your lifestyle and financial situation. But, generally speaking:
Your critical illness coverage should be enough to cover at least six to 12 months of income, plus recovery-related expenses. That figure will look different for each individual, but $50,000-$100,000 is a good starting point for many Canadians.
Your critical illness payout may be needed to cover predictable costs, like rent, mortgage payments, ongoing bills, and childcare, especially if you’re out of work for an extended period. But you’ll also need it to cover unpredictable costs associated with your diagnosis, like out-of-pocket health expenses, travel, home care, and lifestyle changes.
When choosing a benefit amount, consider:
01
02
What kind of medical care is available where you live?
Canadians in rural or remote living situations may need to travel significant distances to access treatment. Transportation and accommodation costs can add up fast.
03
How many people are dependent on your income?
The more people who rely on your paycheque, whether it be a partner, child, or parent, the more substantial a critical illness payout you may need.
04
Would your partner take time off work to care for you?
A serious diagnosis can impact more than one income. Factor in the potential loss of your partner’s earnings – not just your own.
05
What routine tasks would you need to hire help for?
Things like childcare, cleaning, property maintenance or meal prep don’t disappear just because you’re sick. If you’d need to outsource these tasks while you recover, these costs should factor into your coverage amount.
What’s the difference between critical illness & disability insurance?
While both critical illness and disability insurance can help Canadians get through financial hardship associated with a medical condition, they serve different purposes:
Disability insurance
It intends to replace part of an individual’s income when they are unable to work due to an injury, illness, or other disabling condition (as defined by the policy).
Critical illness insurance
It intends to help individuals and their families deal with the steep and unexpected costs associated with a major medical diagnosis, which may include treatment, home care, lost income, and more.
A broken bone might qualify you for disability insurance if you’re unable to work, but it doesn’t come with the overwhelming costs that a cancer diagnosis might carry. Conversely, while you might continue working while undergoing cancer treatment, you’ll still likely face significant costs that your emergency fund may not cover.
Features | Disability insurance | Critical illness insurance |
|---|---|---|
Trigger Online process. Get approved and covered in 20 minutes, on average. | Inability to work | Serious medical diagnosis |
Conditions covered 44 conditions covered | Any medical or mental condition that prevents you from working (as defined by your policy) | A specific list of serious medical conditions specified in your policy, regardless of ability to work |
Payout amount $10,000 to $1 million | A portion of your regular income | $10K - $1M+, based on your selection |
Payout frequency 10, 15, 20, 25 or 30 years | Monthly | One-time lump sum |
When your benefits stop 27 severe conditions | When you return to work | Not tied to work; you get a one-time payment, whether or not you’re working |
Standard waiting period Yes, one online application for both partners | 30 days to 1 year | 30 days |
Features | Other Companies | PolicyMe |
|---|---|---|
Application Typically; a call or meeting with an advisor and a paper application | Typically; a call or meeting with an advisor and a paper application | Online process. Get approved and covered in 20 minutes, on average. |
Number of Conditions Covered 20-30 conditions covered, on average | 20-30 conditions covered on average | 44 conditions Covered |
Coverage Amount $25,000 to $2.5 million, on average | $25,000 to $2.5M, on average | $10,000 to $1M |
Term Lengths Usually 10 or 20 years, or until age 70 or 75 | Usually 10 or 20 years, or until age 70 or 75 | 10, 15, 20, 25 or 30 years |
Fully Covered Early-Stage Conditions 24-26 severe conditions, on average | 24-26 severe conditions, on average | 27 severe conditions |
Partially covered Early-Stage Conditions 0-8 early-stage conditions, on average | 0-8 early-stage conditions, on average | 17 early-stage conditions |
Payout Details Lump-sum tax-free payout | Lump-sum tax-free payout | Lump-sum tax-free payout |
Locked-in Rate? Yes | Yes | Yes |
Convertible? Yes | Yes | Yes |
Can I apply with my partner? No, others require separate applications | No, others require separate application | Yes, one online application for both partners |
Get your critical illness insurance policy today
Need help with health insurance quotes? Speak with an advisor
Find out how much you could pay for critical illness insurance. When you’re ready, you can complete your application online in your own time.
Licensed Canadian insurance advisors are available by phone Monday to Friday from 9AM to 5PM EST.
Talk to a human: +1 (866) 999-7457
FAQ: Critical illness insurance 101
Critical care insurance in Canada pays out the amount set by the insured person as a single tax-free lump sum, typically between $10,000 and $1 million.
The purpose of critical illness insurance is to provide financial support to an individual that has a serious disease or illness. Public health care in Canada may not cover all medications, travel for treatment and homecare. You may also not have an employer group benefit plan or other private coverage to rely on. A critical illness may also mean unpaid time off work and/or additional costs like child care or retrofitting your home.
The lump sum payment you get from critical illness insurance helps to offset these expenses and provide additional financial security during this difficult time.
Illnesses typically covered by critical illness insurance in Canada include heart attack, cancer, paralysis, stroke, organ transplants, Alzheimer's, kidney failure and multiple sclerosis.
Canadian insurers have different definitions of what a critical illness is, but it is essentially a life-threatening illness. Some insurers will only cover serious illnesses like heart attack, while others will also cover early-stage diseases such as early-stage breast cancer.
In Canada, PolicyMe recently introduced the most complete critical illness insurance that covers 44 conditions: full coverage for 27 conditions and partial coverage for 17 conditions. Sun Life and Equitable offer the next best coverage options with 34 conditions covered: full coverage for 26 conditions and partial coverage for 8 conditions.
Curious to see how PolicyMe stacks up against other Canadian critical illness providers? Learn more about the best critical illness insurance in Canada.
Some conditions specify an amount of time that has to pass after you are diagnosed before you qualify for a critical illness payout. This differs by insurance company and by the condition that is covered. Usually, cardiovascular conditions (like heart attacks) are most likely to have a waiting period. That said, most of PolicyMe's covered conditions don't have waiting periods to qualify.
Critical illness insurance typically pays out between $10,000 to $1 million in Canada. You choose your coverage amount when you apply for and sign your critical illness policy. If you want a higher coverage amount, your monthly premium will also be higher, though this rate is also determined by your health status, age and other factors.
Critical illness insurance is always paid out as a single lump-sum amount.
Yes, you can always cancel your critical illness insurance with any Canadian provider.
With PolicyMe, you get a full refund on any premiums you have paid if you cancel within 30 days of the date your critical illness policy became active.
If you cancel after this 30-day period, you will only receive a pro-rated refund of any premiums you have prepaid. You won’t be charged any cancellation fees or penalties.
Yes, you can buy critical illness insurance by itself in Canada. At PolicyMe, you can buy critical illness coverage by itself, you can buy it with term life insurance or you can add it on to existing term life insurance coverage after the fact.
You might still be eligible for critical illness insurance if you have a history of high blood pressure. But you may not be eligible if you’ve had an abnormal ECG or have had heart surgery. You might also be ineligible if you’ve been diagnosed with or have experienced symptoms of:
- Heart attack
- Transient ischemic attack
- Stroke
- Coronary artery disease
Make sure to read your policy carefully to see what other exclusions may apply.
Have a question we didn’t answer?
Call +1 (866) 999-7457 from 9AM-5PM EST Monday to Friday or email us. Our insurance expert team is happy to help!
