What is Critical Illness Insurance in Quebec?

Critical illness insurance is financial protection that pays out a tax-free lump sum if the insured is diagnosed with a covered serious illness. This amount can be used freely to deal with the financial consequences of the illness.

Covered Illnesses

Depending on the insurance company, a policy can cover between 4 and 30 critical illnesses, including:

Cancer

Stroke (CVA)

Myocardial Infarction (Heart Attack)

Multiple Sclerosis

Other major conditions

Critical Illness Insurance vs RAMQ: What is the difference?

In Quebec, RAMQ covers essential medical care (consultations, hospitalization, medical acts).

However, RAMQ does not cover:

Loss of income
Uninsured medications
Private or accelerated treatments
Home care
Travel, home adaptations, or personal expenses

Critical illness insurance therefore complements RAMQ, by protecting the financial stability of the insured and their family during a major diagnosis.

The Real Financial Impact of a Critical Illness

A critical illness diagnosis leads to significant financial stress that can last for years. Here are the main impacts:

1. Loss of income

Average loss of income is $20,000 due to absence from work. Caregivers also lose an average of 25% of their income.

2. Lifetime direct costs

Total lifetime cost of cancer for an average patient in Canada is nearly $33,000. In 2024, costs borne by patients and families reached $5.2 billion.

3. Treatments and medications

Average price of a series of treatments is $65,000 for new drugs. Even with insurance, you could pay up to 20% of costs.

4. Indirect costs

Quickly accumulating expenses: travel, parking, hospital meals, childcare, housekeeping, and medical supplies.

Studies show 44% of patients use savings, 27% use credit, and 26% return to work before they are ready.

Did You Know?

Almost 1 in 2 people will be affected by cancer in their lifetime, and 1 in 4 will die from it.

In Canada, estimated 0.48 diagnoses per minute in 2025.

1 in 4 people has a diagnosed heart condition in Canada.

90% of Canadians believe a diagnosis would impact their finances.

Frequently Asked Questions (FAQ)

It pays a tax-free lump sum upon diagnosis of a covered illness.

No. The capital paid is generally tax-free.

Critical illness pays a one-time sum at diagnosis, while disability pays a monthly income. They are complementary.