A critical illness policy is insurance policy that pays out a tax-free lump sum payment if you are diagnosed with a serious, life-threatening medical condition covered under your policy. It is designed to help individuals cope with the financial burdens that arise due to the high costs of treatment and managing serious illnesses. This coverage maintains your financial health and protect your retirement savings when you are recovering and not able to go to work because of critical illness. Health care in Canada is free however long treatment and recovery time takes a great toll on your finances. Recovering from major illness usually requires multiple trips to hospitals which cost you money and potential lost work for you and your spouse causing a financial burden.
