Many Canadians confuse life insurance with critical illness insurance, but they serve two very different purposes. Understanding both helps you build a stronger financial safety net.
Life Insurance
- Pays a tax-free lump sum when you pass away
- Supports your family after you’re gone
- Helps with debts, income replacement, estate taxes, etc.
Critical Illness Insurance
- Pays a tax-free lump sum while you’re still alive
- Covers major illnesses like cancer or stroke
- Helps with recovery and non-medical costs
Which One Should You Get?
Ideally: Both. Life insurance protects your loved ones. Critical illness protects you.
If budget is tight, start with life insurance and add critical illness coverage as finances allow. You can even get combination policies through some providers.
Final Thought
These products aren’t rivals — they’re teammates. Together, they give you and your family security during and after life’s toughest moments. If you would like for a licensed professional to help you explore your options, fill in a quick form below to get connected to a Canadian Insurance Broker.
