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- Canada Life offers two critical illness insurance plans: LifeAdvance for adults and Child LifeAdvance for children
- LifeAdvance offers comprehensive coverage for 25 conditions and partial coverage for 8, with coverage ranging from $10,000 to $3 million
- Child LifeAdvance covers 26 conditions, including 5 childhood-specific conditions, with coverage ranging from $10,000 to $250,000. Coverage up to $500,000 may be considered on an individual basis
- What are the benefits of Canada Life’s critical illness insurance?
- Types of critical illness insurance offered by Canada Life
- What critical illnesses are covered by Canada Life?
- What conditions are excluded from Canada Life critical illness insurance?
- What type of term options are available with Canada Life critical illness insurance?
- Can I cancel or modify my Canada Life critical illness policy?
- What is the cost of a Canada Life critical illness policy?
- Pros and cons of Canada Life’s critical illness insurance
- How can I buy a Canada Life Critical Illness Insurance Plan?
- Frequently asked questions
Canada Life offers a wide range of solutions to protect Canadians from the financial impact of serious health conditions. One of them is critical illness insurance.
In this article, we’ll explore the key features, benefits, and drawbacks of Canada Life’s critical illness insurance to help you determine if it’s the right choice for securing your future.
What are the benefits of Canada Life’s critical illness insurance?
Canada Life’s critical illness insurance provides a tax-free lump sum payment upon diagnosis of a covered health condition. This payment can be used for any purpose, whether replacing lost income, seeking treatment abroad, or managing everyday expenses.
Here are some other benefits of Canada Life’s critical illness insurance:
- Partial payout benefits: Besides critical illnesses, Canada Life covers 8 early-stage and less-severe conditions, including early-stage thyroid and prostate cancer. You can claim up to 15% of your insurance benefit (maximum $50,000) upon being diagnosed with these conditions
- Surgery advance: If you need surgery for a covered condition, Canada Life will pay you up to 10% of your benefit (maximum $15,000) to cover costs. This amount will be deducted from your total payout
- Return of premium option: If you choose this option and make no claim on your insurance policy, you can get back 100% of your premium payments
- Medical and emotional support services: You can access a network of 50,000 medical experts for expert opinions on your diagnoses, plus professional counseling and family support services to help you and your loved ones cope with your condition
- Conversion options: If you buy a children’s critical illness policy, you can convert all or part of the coverage to an adult policy before the child turns 25
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Types of critical illness insurance offered by Canada Life
Canada Life offers two critical illness insurance plans to cover adults and children, LifeAdvance and Child LifeAdvance, respectively.
- LifeAdvance critical illness insurance: This plan provides comprehensive coverage for 25 critical illnesses, including major conditions such as cancer, heart attack, and stroke. Policyholders can choose a coverage amount ranging from $10,000 to $3,000,000
- Child LifeAdvance critical illness insurance: This plan covers 21 conditions, plus 5 childhood-specific conditions, which are cerebral palsy, type-1 diabetes, cystic fibrosis, congenital heart disease, and muscular dystrophy, with coverage ranging from $10,000 to $250,000. Coverage up to $500,000 may be considered on an individual basis
Key features of LifeAdvance and Child LifeAdvance Plans
| Feature | LifeAdvance | Child LifeAdvance |
|---|---|---|
| Coverage amount | $10,000 to $3 million | $10,000 to $250,000 |
| Issue ages | 18 – 65 years | 60 days to 17 years |
| Premium and coverage options |
|
Level premiums up to age 25 |
| Conditions covered | Comprehensive coverage for 25 conditions and partial coverage for 8 |
|
| Survival period |
|
|
| Partial benefits | 15% of the critical illness benefit (up to $50,000) | 15% of the critical illness benefit (up to $37,500) |
| Surgery advance | 10% of the critical illness benefit (up to $15,000) | 10% of the critical illness benefit (up to $15,000) |
| Optional benefits | Loss of independent existence, disability waiver of premium, second event, return of premium at withdrawal, return of premium at expiry, return of premium at death | Return of premium at expiry and return of premium at death |
What critical illnesses are covered by Canada Life?
Canada Life’s critical illness insurance covers 25 illnesses and life-threatening conditions, including:
- Aortic surgery
- Aplastic anemia
- Bacterial meningitis
- Benign brain tumour
- Blindness
- Coma
- Coronary artery bypass surgery
- Deafness
- Dementia, including Alzheimer’s disease
- Heart attack
- Heart valve replacement or repair
- Kidney failure
- Life-threatening cancer
- Loss of limbs
- Loss of speech
- Major organ failure on waiting list
- Major organ transplant
- Motor neuron disease
- Multiple sclerosis
- Occupational HIV infection
- Paralysis
- Parkinson’s disease and specified atypical Parkinsonian disorders
- Severe burns
- Stroke
The company also covers 5 childhood conditions under their children’s plan:
- Cerebral palsy
- Type-1 diabetes
- Cystic fibrosis
- Congenital heart disease
- Muscular dystrophy
What conditions are excluded from Canada Life critical illness insurance?
Canada Life will not pay an insurance benefit, surgery advance, or illness assist benefit (partial payout) if the insured condition arises due to:
- An attempt by the insured to take their own life or intentionally harm themselves
- Participation in an assault, battery, or criminal offense (whether or not charges are laid)
- Use of drugs, intoxicants, narcotics, or any substance not prescribed by a medical practitioner
- War, or hostile actions by armed forces (of any country)
- Operating or controlling a motorized vehicle with a blood alcohol concentration over 80 milligrams per 100 milliliters of blood
Additionally, claims for benign brain tumors, Parkinson’s disease, life-threatening cancer, or other covered cancers will not be paid if:
- The condition is diagnosed within 90 days of the policy start date, issue date, or last reinstatement
- For Parkinson’s disease or atypical Parkinsonian disorders, the diagnosis occurs within one year of the policy start date, issue date, or last reinstatement
Claims will also be denied if there were symptoms, investigations, or a diagnosis of the condition before the waiting period, even if the formal diagnosis was made after the waiting period.
What type of term options are available with Canada Life critical illness insurance?
Canada Life offers 7 term options across 3 types of critical illness insurance plans:
Permanent level premium plans
These plans offer lifelong coverage with fixed premiums. You can choose from three payment options:
- Paid-up at 100: No further premiums required after age 100
- Paid-up in 15 years: Premium payments end after 15 years
- Paid-up in 20 years: Premium payments end after 20 years
Renewable term plans
These plans offer coverage for a set period (or “term”) and can be renewed at the end of each term without requiring additional medical underwriting. Two term options are available:
- Term 10: Provides coverage for 10 years. Renewable every 10 years until age 75
- Term 20: Offers coverage for 20 years. Renewable every 20 years until age 75
Level premium term plans
This type of insurance offers fixed premiums for the entire term and coverage up to age 75. You can choose from two payment options:
- Level premium to age 75: Offers fixed premiums until age 75.
- Level premium to age 75 (paid-up in 20 Years): Premiums are paid up in 20 years, but coverage continues until age 75
Can I cancel or modify my Canada Life critical illness policy?
Yes, you can cancel your Canada Life critical illness policy in two ways:
- Early cancellation: If you’re dissatisfied with your policy, you can return it within 10 days of its receipt and get a full refund
- General termination: You can cancel your policy anytime by submitting a cancellation request. Your policy will also end if you request a full withdrawal of your insurance benefit using the return of premium at withdrawal rider.
You can also modify your policy by converting a portion or all of the insurance amount under a Term 10 or Term 20 renewable term policy to a level premium critical illness insurance policy until the age of 65.
What is the cost of a Canada Life critical illness policy?
The cost of a Canada Life critical illness policy is determined by several factors, including:
- The applicant’s age: Younger applicants usually pay lower premiums
- Coverage amount: A higher coverage amount entails higher premiums
- Pre-existing health conditions: These may affect your eligibility or increase your premiums
- Smoking status: Non-smokers pay significantly lower premiums
- The policy’s term length: The duration of coverage also influences premiums
For reference, here’s what a 20-55-year-old might pay for $50,000-$100,000 in critical illness coverage over a 10-year term:
Cost of Canada Life critical illness insurance
| Age | Coverage amount | Monthly premium ( Male Smokers) | Monthly premium (Male Non-smokers) |
| 20 | $50,000 | $16.93 | $14.37 |
| 30 | $100,000 | $35.57 | $26.25 |
| 35 | $50,000 | $32.45 | $19.96 |
| 40 | $100,000 | $74.48 | $41.30 |
| 45 | $50,000 | $76.74 | $37.49 |
| 55 | $100,000 | $360.99 | $161.26 |
For personalized quotes, try our online critical illness insurance calculator or book a free consultation with our licensed insurance advisors.
Pros and cons of Canada Life’s critical illness insurance
Canada Life’s critical illness insurance offers several benefits, including comprehensive coverage for 25 conditions, partial coverage for 8 conditions, and a 10% surgery advance benefit. However, it also has some drawbacks:
| Pros | Cons |
| Higher coverage amount (up to $3,000,000) and multiple term options | Loss of independent existence is a separate rider with additional cost |
| Comprehensive coverage for 25 conditions, plus partial coverage for 8 | The Child LifeAdvance plan does not have second event and disability waiver of premium rider options |
| Children’s plan with 26 covered conditions | |
| 10% surgery advance payment (up to $15,000) from total benefit | |
| Second event coverage (only at the issue of basic policy) |
How can I buy a Canada Life critical illness insurance plan?
Choosing the right critical illness insurance requires careful consideration of several factors, like coverage amount, premium structure, and your potential healthcare needs, all of which can feel overwhelming
PolicyAdvisor can simplify this process. Our advisors can help you compare different providers and their offerings and select a plan that aligns with your specific requirements.
We also provide lifetime after-sales support to address any questions or policy adjustments you may need in the future. Book a free consultation with our advisors today for personalized critical illness insurance quotes.
Frequently asked questions
Is Canada Life’s critical illness insurance worth it?
Yes, Canada Life’s critical illness insurance can be a valuable source of financial comfort during an unexpected health problem. Their tailored plans for adults and children make it easier for individuals to buy a policy that suits their unique circumstances.
With a coverage amount of up to $3 million and additional riders such as the return of premium or disability waiver of death, Canada Life’s critical illness plans are one of the best in the industry. We recommend you speak to one of our licensed insurance advisors for a personalized assessment of your needs and to determine if Canada Life’s critical illness insurance is the right choice for your situation.
Are there any conversion options for my Canada Life critical illness policy?
Yes, until you turn 65, you can convert all or a portion of your insurance amount under a Term 10 or Term 20 renewable term policy to a level premium critical illness insurance policy, without additional medical underwriting.
You can also convert a Term 10 policy with a series date of May 25, 2020, or later to a Term 20 policy within the first five years of issue, provided you are under age 54.
Canada Life offers two critical illness insurance plans: LifeAdvance for adults and Child LifeAdvance for children. LifeAdvance offers comprehensive coverage for 25 conditions and partial coverage for 8. The Child LifeAdvance Plan covers 26 conditions, including 5 childhood-specific conditions such as cerebral palsy, congenital heart disease, cystic fibrosis, muscular dystrophy, and type-1 diabetes mellitus
