None of us knows what the future holds. We all feel invincible when we are young. But the truth is, heart attacks, strokes, cancer and COPD are all common in North America, as are bypass surgeries that are a serious challenge to recover from.

Critical Illness Insurance can be temporary or permanent. You can choose the length of time you are covered. (Some have access to other sources of income after a certain date, so may not need permanent). Should you get sick during that time period, or have a heart attack, or experience any other of the dozens of critical illnesses that qualify, you receive a lump sum amount.

The amount you choose will be reflected in your premiums. This is not income replacement, it’s a one-time, large sum. You can cancel any time, but you wouldn’t get your premiums back. That said, if you choose a temporary plan and you reach your end date without illness, you get your money back.

You can use your funds however you wish. You may need private nursing or modifications to your home or vehicle, as none of these expenses are covered under provincial health care plans.

Should you get ill, you can also face other challenges. You will have to research how to find the best medical care and perhaps pay for consults, which can be pricey. You can help pay for daily expenses such as child care or therapy that helps with stress.