Everybody talks about having Critical Illness Insurance coverage today. We as “ THE SEKHON TEAM “ would say, it is a subject of concern for everyone in today’s busy and speedy life. Actually most people have an idea about the word “ Critical Illness “ but they don’t know in detail the importance of having Critical insurance Coverage in their lives. This article of ours will open your eyes today and will definitely make you aware about some true facts and aspects of this very important insurance coverage.

What is Critical illness?
“Critical illness” is a life-threatening condition, which is generally strictly defined. In simple words critical illness can turn out to be a nightmare for a person who has no coverage for Critical illness. On one side a person is under treatment due to critical illness but on the other side he has to support his family as usual with unexpected medical bills, mortgage and other ongoing routine bills.

How Critical illness insurance Coverage works?
Critical illness insurance policy is a contract between an insurer and the policyholder. The pre- requisites for the approval of this coverage are some paramedical questions and lab tests (Urine test, blood profile etc.), which depend on age and the face value of the applicant. After approval, if the policyholder is diagnosed with one of the covered illness specified in the contract, the insurer pays tax-free lump sum payment. This lump sum money can be spent on any financial need during his/ her medical crisis.

Why is Critical illness insurance policy necessary?
In case any critical illness is diagnosed, you cannot fully rely on MSP or any group health coverage. Trust me, personal and retirement savings saved for old age protection are not meant for this purpose. Disability insurance replaces income but is not sufficient for the added burden of medical and routine daily household expenses. Long-term care insurance is too restrictive and inflexible, so Critical illness coverage is the only solution left with the person.

List of Critical illnesses that could be covered

  • Cancer
  • Stroke
  • Heart Attack
  • Coma
  • Loss of Speech
  • Loss of Limbs
  • Heart Valve Replacement
  • Alzheimer’s Disease
  • Benign Brain Tumour
  • Parkinson’s Disease
  • Blindness
  • Paralysis
  • Motor Neuron Disease
  • Heart Valve Replacement
  • Kidney Failure
  • Severe Burns
  • Multiple Sclerosis
  • Occupational HIV infection
  • Major Organ Transplant
  • Coronary Artery Bypass Surgery etc. etc.

Canadian Statistics indicate some important facts which must not be ignored. 40% of women and 45% of men will be diagnosed with cancer at some point in their lives. ( Canadian Cancer Society’s Steering Committee: Canadian Cancer Statistics 2009,Toronto Canadian Cancer Society, 2009). Out of these, 62% will survive more than 5 years and that is the point of concern as ongoing payments like mortgage, medical bills and other day to day household expenses will not stop.

Benefits of Critical Insurance Coverage:

At any stage, when any covered illness is diagnosed and if it meets the definition set out in the contract , the affected person has to satisfy the required waiting period , usually 30 days but some exceptions apply . After satisfaction of waiting period, the insurance company pays the amount of chosen face value which is tax-free. This coverage is also known as living benefit.

Highly recommended riders and options available in CI Insurance Coverage you must consider:

  • ROP (Return of premium)- If you have not claimed for critical illness, you can request return of premium as long as you have fulfilled the minimum time period specified within the policy.
  • ROPD ( Return of premium on death ) – If the critical illness benefit was not paid in full, a refund of total premiums paid or 25% of amount of critical illness insurance , whichever is highest is returned to your beneficiary , in case insured person dies suddenly. The ROPD is an optional rider.
  • Term CI – Similar to term life insurance, this critical illness insurance increases in premium cost at the start of each new term. A term is generally 10 years or 20 years. Term CI expires at age 75 (varies by insurance company).
  • Permanent CI – Permanent critical illness insurance is a level term insurance, which means the premiums never change. Permanent CI does not expire unless requested by the client, or terminates if he fails to pay.
  • Permanent CI- is also limited pay in 10 or 20 years. You can pay the full premiums in limited time i.e. 10 or 20 years and you remain insured for the rest of your life.
  • Second event – If there is a second critical illness, you receive 50% of the policy benefit over and above the base benefit. Second event is an optional rider.
  • Waiver of premium – The premiums are waived, if you get disabled. Waiver of premium is an optional rider.


  1. All critical illness claim payments are received lump-sum & tax free.
  2. Employee contributions are not tax deductible.
  3. Employer contributions are taxable income to employees.

If you have any questions regarding Critical Illness insurance or you need to know the premiums on your age, please feel free to call us for free quote at 778 320 5359 ( Rajdeep Singh Sekhon ) or at 604 358 0590 ( Manmohan Kaur Sekhon )