What Is Critical Illness Insurance?

Critical Illness Insurance pays a one-time, tax-free lump sum when you are diagnosed with a serious disease or health condition listed in your policy (for example, cancer, heart attack, stroke, organ failure, paralysis, transplant, etc.). You can use this money however you want — medical costs, living expenses, rehabilitation, or income replacement.

Unlike life insurance (which pays upon death), CI insurance helps while you are alive but facing a major health crisis.

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How Common Are Critical Illnesses?

Here are some relevant data and trends to help your visitors understand the risk:

Canada
• Every week in Canada, about 3,075 people are diagnosed with cancer (≈ 159,900 per year).
• There are about 40,000 to 50,000 strokes annually in Canada.
• ~70,000 heart attacks occur each year in Canada.
• In CI insurance claims, ≈ 67% of claims are for cancer.
• Women make about 46% of CI claims, with average claim age ~49; men ~54 making ~54% of claims.
• Many Canadians already live with chronic disease: ~45% had at least one major chronic illness in 2021.
• Among older Canadians (65+), 73% have at least one common chronic disease (e.g. hypertension, heart disease, diabetes, cancer).
• Despite the risk, CI coverage is still uncommon: only ~2.4 million Canadians have critical illness insurance.

Global / Other Countries / Hospital Data
• In hospitals across various countries, about 12% of inpatients are critically ill (with vital organ dysfunction) at any given time.
• Among these critically ill hospital patients, ≈ 18–19% die during their hospital stay.
• In the U.S., the incidence of “chronic critical illness” is about 34.4 per 100,000 people.
• ICU (intensive care) mortality rates globally are ~16% (in general ICU populations) and higher in severe cases (e.g. sepsis).
• Prevalence of chronic critical illness (persistent severe conditions) in ICU settings is estimated at ~17% globally.

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Why Critical Illness Insurance Is Important — Especially Today

1. High Medical Costs & Gaps in Coverage
   Even in countries with public healthcare, many costs are not fully covered — prescription drugs, travel, home care, rehabilitation, lost income, and extra treatments often fall on the patient. In Canada, average out-of-pocket costs for cancer care may exceed CAD $400 per month.
2. Rising Rates of Chronic and Serious Diseases
   Aging populations, lifestyle risk factors (smoking, obesity, lack of exercise) and improvements in diagnosis mean more people live into ages prone to serious illness.
3. Financial & Emotional Protection for Families
   A sudden critical illness can strain savings, force job loss, or disrupt retirement plans. CI insurance gives families flexibility and peace of mind to focus on recovery, not finances.
4. Gap Between Medical Need and Insurance Uptake
   Many people underestimate the risk or delay buying coverage. By the time a diagnosis is made, they might no longer qualify or rates may be much higher. CI insurance acquired earlier tends to cost less.
5. Supplement to Life Insurance
   Life insurance protects dependents after death; CI insurance helps during life when you most need financial support amid a health crisis.