Is Critical Illness Insurance Critical?

Is Critical Illness Insurance Actually Critical?

A recap from The Chiro Money Show

Critical illness insurance is simple in concept. You apply for a lump sum benefit, typically anywhere from $50,000 to $250,000 or more. If you're diagnosed with a covered condition, the most common being cancer, heart attack, or stroke, and you survive 30 days, that money lands in your bank account. No restrictions on how you spend it. It's yours.

That's the part people underestimate. It's not about replacing your income. It's about buying yourself options at a moment when options matter more than just about anything else.

How it's different from disability insurance

Disability replaces your monthly income if you can't work. CI is a one-time cash event triggered by a diagnosis, whether or not you're able to keep working. In some situations, you could legitimately claim on both. They're solving different problems.

As for priority: if you don't have disability coverage in place, start there. CI is the next conversation, not the first one.

The numbers are real

Roughly 2 in 5 Canadians will be diagnosed with cancer in their lifetime. These aren't hypothetical risks for someone else. They apply across the population, including healthy, active people who take care of themselves.

The cost of a CI policy relative to the coverage it provides is, in most cases, nominal. A few hundred dollars a year for $100,000 of coverage is a real transfer of risk for a pretty small price.

What you can do with the money

Scott shared his mom's story on the episode. Diagnosed with early-stage breast cancer in her 50s, she received a $75,000 benefit and made a choice most people wouldn't have had without it: she left Edmonton, moved to the west coast, focused on natural recovery, put her feet in the ocean, and spent every dollar on her health. No tapping into retirement savings, no asking anyone for help. Just options.

For someone else it might be a trip to the Mayo Clinic, home modifications after a stroke, or simply keeping the mortgage paid while a spouse steps away from work to provide care.

Corporate vs. personal ownership

For incorporated chiropractors, this is worth a conversation with your advisor. A personally-owned policy pays out tax-free to you. A corporately-owned policy pays to the corporation and can serve a different purpose, like keeping the practice running while you step away. Neither is automatically right. It depends on your situation.

The bottom line

CI insurance isn't mandatory the way a disability contract is. But the question isn't whether you'll definitely need it. The question is: if you got a serious diagnosis tomorrow, would you have options?

That's worth thinking about.

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