Best Critical Illness Insurance in Canada: Company Reviews
The best critical illness insurance in Canada comes from PolicyMe, Sun Life and Manulife. This review will help you make an informed decision—and protect your family's financial future.
What is critical illness insurance?
Critical illness insurance is a type of policy that can protect you if you're diagnosed with a serious condition that may be life-threatening or life-altering. It’s worth it as income protection, so you get help covering lost income or unexpected expenses due to illness.
Your insurer pays you a tax-free lump sum if you're diagnosed with a critical illness on their list of approved conditions. You can use this money for things like:
- Paying your bills while you're off work
- Covering treatments
- Assisting with medical expenses
- Supplementing your income
Each critical illness plan covers different medical issues. Stroke, heart attack, cancer and organ failure are covered by most critical illness insurance policies in Canada.
“You can get multiple payouts on a critical illness plan,” says advisor Erik Heidebrecht. With some policies (like PolicyMe), you could get ill, get a payout, recover, and then get ill again and get another payout.
Video Summary: 3 things you should know about Critical Illness Insurance
What is the best critical illness insurance in Canada?
The best critical illness insurance in Canada is PolicyMe, and that’s because it earned top rankings across all the categories that make a good critical illness policy:
- Payout that meets your financial needs
- Comprehensive list of conditions you’re protected against
- Affordable premiums (even cheaper if you combine with life insurance)
- Easy application process
Most major insurance companies offer critical illness insurance. Let’s take a look at some of the biggest names in Canada and compare their offers and covered conditions.
The prices below are based on publicly available rates for a 45 year-old non-smoking woman, with $50,000 in coverage for a 10-year term
PolicyMe critical illness insurance
Reviews.io score: ★★★★★ (4.82)
PolicyMe offers the most extensive critical illness coverage in Canada, covering 44 critical illnesses and conditions. Most other leading competitors in the space cover 34 or less.
Flexible policy options include:
- $5,000 to $1M in coverage
- Term length: 10 to 30 years (similar to our term life insurance)
- 44 covered illnesses (including more cardiovascular and cancer conditions covered than any other Canadian insurer)
- No 30-day waiting period: You can submit a claim for 25 of 44 conditions (including all covered cancers) after diagnosis
- Major perk #1: Apply for term life and critical illness insurance at the same time
- Major perk #2: Applying takes 20 minutes and you’ll know right away if you’re approved
Customer verdict? Well worth it. “PolicyMe has really raised the bar! Super easy to apply and Elie answered all the questions I had with professionalism. Not to mention, the policy cost me half of what I was paying before with another big company.” - Customer review
$40.53 is the monthly cost for a $50,000 policy with PolicyMe if you’re a 45-year-old non-smoking woman.
Sun Life critical illness insurance
InsurEye score: ★★☆☆☆ (2.0)
Sun Life offers two types of critical illness insurance plans in Canada. The less comprehensive coverage policy is called Express Critical Illness, and the more comprehensive policy is called Sun Critical Illness.
- $25,000 to $3M in coverage for adults ($1M limit for child plans)
- Term length: 10 (renewable), 75, lifetime
- 26 illnesses covered for full payout protection
- 8 less severe illnesses covered for partial payout protection
- Major drawback: You have to go through a Sun Life advisor to apply or learn more.
Customer verdict? “Service is consistently slow, disorganized, and lacking in transparency. There is a clear lack of urgency or care for my situation.” - Customer review
$47.78 is the monthly cost for a $50,000 policy with Sun Life if you’re a 45-year-old non-smoking woman.
Manulife critical illness insurance
InsurEye score: ★☆☆☆☆ (1.3)
Manulife offers three critical illness insurance options. Just be aware that some policies only cover five major illnesses.
For Lifecheque, you’ll need to go through a Manulife insurance advisor to get more information or start the enrolment process. But for CoverMe, you can get a quote online.
Lifecheque Basic:
- $25,000 to $75,000 in coverage (limit is $50,000 for ages 56-60 and $25,000 for ages 61-65)
- Five severe illnesses covered for full payout protection
- Optional add-ons: Get eligible premiums back at age 75 if you never made a claim
Lifecheque:
- 24 critical illnesses covered for full payout protection
- Six early invention conditions covered for partial payout protection
- Monthly Care Benefit if you meet the criteria for functional dependence
- Optional add-ons: Get eligible premiums back if you die without filing
CoverMe:
- $25,000, $50,000 or $75,000 in coverage
- Five severe illnesses covered for full payout protection
- Policy covers you until age 75, even if your health or occupation changes
Customer verdict? “Every time I've called there has been a mistake on their end that caused the claim to bounce, and I'm being given conflicting information.” - Customer review
A 35-year-old non-smoking man will only pay about $27 per month for a $75,000 plan with no medical exam required.
BMO critical illness insurance
InsurEye score: ★★★☆☆ (2.6)
BMO offers two types of typical critical illness coverage: a term plan or a permanent plan with 25 conditions covered plus seven early-discovery conditions. You can also get CII as an add-on to a BMO life insurance policy. You can get a quote on BMO’s website but you’ll have to call them to apply.
BMO's term plan:
- $25,000 to $2M in coverage
- Term lengths: 10 or 20 years (renewable until age 75)
- Convertible to permanent Living Benefit 75 or 100 policy
BMO's permanent plan:
- Term lengths: 75 or 100
- Premiums are guaranteed never to increase
BMO’s insurance rates are not very competitive, especially given the limited conditions they cover and their 30-day survival period before you can make a claim.
Customer verdict? "I made a $10,000 Critical Illness claim with BMO over 3 years ago and still have not been paid out! [...] I've contacted them several times, got weak apologies and was made to fill out the same claim forms I did originally to start the process all over." - Customer review
A 35-year-old, non-smoking man can expect to pay about $31 per month for a 10-year term with $75,000 in coverage or $75 per month for a permanent policy with BMO.
How to get the best critical illness insurance for you
To get the best critical illness coverage for your exact needs, answer these questions for yourself before you start browsing:
For which conditions and illnesses do I want coverage?
- If certain conditions run in your family, start with these.
- If you don’t know, look for a company that covers a long list of diseases.
What term length fits my needs best?
- Longer policies mean higher premiums but protection for more years.
- Consider your prime earning years and how long you need protection.
What level of coverage or payout would help protect my financial security?
- More coverage means higher premiums for the duration of your policy.
- Think carefully about a benefit amount that makes sense for your personal finances.
Do customer experience and claims handling matter to me? Maybe more than price?
- Saving money is good, but not at the expense of expedient claims handling.
- Read reviews from real customers and make sure you know what to expect.
You may find that only a few companies fit your criteria after answering these questions. Then, you’re ready to request quotes and sign up for a policy.
Steps to buying your critical illness insurance policy
Here are five easy steps to help you get started with critical illness insurance:
- Start by looking at quotes. Note which conditions each plan covers to make sure you're getting the most protection for your dollar.
- Apply for a policy! Remember that some brokers and agents are on commission, so you’ll need to do your homework to ensure you’re getting the best possible policy for the price you’re paying.
- Once you receive your contract policy, take a good look at it before you sign. Make sure you know what conditions are covered and how much your payout will be for each.
If you end up diagnosed with a serious illness covered on your policy’s list of conditions, you’ll file a claim, and your insurer will pay out a tax-free lump sum. Once you’ve gotten the money, your coverage ends; it’s good for one payout.
If you never end up having to make a claim, you may be eligible to have a portion of your premiums refunded to you once your policy term expires. Read your terms and conditions documents carefully to see if this applies to you.
Apply for the most complete critical illness coverage in Canada in 20 minutes or less. PolicyMe provides affordable coverage for more conditions than any other Canadian insurer..
Appendix: list of critical illnesses covered by PolicyMe
Here is a list of conditions covered by PolicyMe's critical illness insurance list coverage:
What illnesses are covered by critical illness insurance?
PolicyMe critical illness insurance covers 44 conditions, the most in Canada. Here is a breakdown of the illnesses and conditions covered, either fully or partially:
Cancer
- Cancer of specified severity
Heart Conditions
- Aortic surgery
- Cardiomyopathy
- Coronary artery bypass surgery
- Heart attack
- Heart valve replacement or repair
Neurological Conditions
- Stroke
- Acquired brain injury
- Bacterial meningitis
- Benign brain tumor
- Coma
- Dementia, including Alzheimer's Disease
- Motor neuron disease (incl. ALS)
- Parkinson's Disease and specified atypical Parkinsonian disorders
- Paralysis
Autoimmune Conditions
- Aplastic anaemia
- Multiple sclerosis
- Occupational HIV infection
Sensory & Mobility Conditions
- Blindness
- Deafness
- Loss of limbs
- Loss of speech
- Loss of independent existence
- Severe burns
Transplants & Organ-Related Conditions
- Kidney failure
- Major organ transplant
- Major organ failure on waiting list
Cardiovascular Conditions & Procedures
- Aortic aneurysm
- Coronary angioplasty
- Endovascular aortic surgery
- Implantation of a permanent cardiac pacemaker
- Implantation of a permanent implantable cardioverter-defibrillator (ICD)
Early-Stage Blood Cancers
- Chronic lymphocytic leukemia – stage 0
Early-Stage Breast Cancer
- Breast Cancer: Ductal carcinoma in situ of the breast or lobular carcinoma in situ of the breast
Early-Stage Intestinal Cancer
- Gastrointestinal stromal tumours (GIST)
Early-Stage Prostate Cancer
- Prostate cancer – stage T1a or T1b
Early-Stage Skin Cancers
- Malignant melanoma – stage 1
- Dermatofibrosarcoma
- Primary cutaneous lymphoma
Early-Stage Thyroid Cancer
- Papillary thyroid cancer or follicular thyroid cancer – stage 1
Other Forms Of Cancer
- Neuroendocrine tumours (including carcinoid tumours)
- Carcinoma in-situ (non-invasive cancer)
Mastectomies
- Carcinoma in-situ (CIS) of the breast treated with total mastectomy
Prostatectomies
- Prostate cancer treated with radical prostatectomy
FAQ: Best critical illness insurance in Canada
Bonnie Stinson is an insurance writer and researcher in Toronto with a decade of experience producing helpful, accurate content for Canadians. They have published resources for some of Canada's most innovative and consumer-trusted companies in the health, legal, and fintech sectors.
Bonnie Stinson is an insurance writer and researcher in Toronto with a decade of experience producing helpful, accurate content for Canadians. They have published resources for some of Canada's most innovative and consumer-trusted companies in the health, legal, and fintech sectors.