Critical Illness Recovery Plans – What You Should Know

Facing a critical illness can be one of the most difficult challenges in life. Receiving a diagnosis is just the beginning. Obtaining the best care, meeting your family’s day-to-day needs can become significantly more difficult.

Critical illness insurance provides a one-time, lump-sum, tax-free benefit in the event that you are diagnosed with a covered condition. For most people between the ages of 18 – 65, the impact of a critical illness on your or your family’s finances can be significant.


Critical illness coverage is also appropriate for non-income earning people as other benefits like disability insurance hinge on your ability to earn an income.


You can use the money for whatever you choose:

  • mortgage payments

  • alterations to home

  • supplement disability insurance coverage

  • pay for specialized or out of country treatments that may not be covered by government health insurance plans

  • top up group insurance

What’s new with critical illness insurance policies?

Insurers are keen to differentiate their products in the marketplace, and introduce new features or policy types to suit the market.

  • Reduced waiting periods: while most insurers have a 30-day survivor period for all covered conditions, some have waived that waiting period for certain conditions.

  • Early assistance benefits: Early breast cancer, prostate cancer, skin cancer, and thyroid cancer are highly treatable but disruptive nonetheless. Some insurers offer an early assistance benefit (typically 10% of the critical illness benefit up to a specified amount).

Why now?

As advisors, we know that clients think they are buying coverage with money, but really the coverage is purchased with your health. Personal and family health history and your current health are all factors in underwriting.


If you would like to learn more about whether this type of coverage fits your personal protection plan, please contact us. We have experience working in a range of premium levels and policy types. We'd love to hear from you.