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Critical Illness Insurance – Financial Protection Or Your Money Back!

Did you know that 1 in 3 women and 2 in 5 men have a chance of developing a critical illness in their lifetime? (1) The good new is many will recover!

Many of us have witnessed how a serious illness can affect a family – how it can derail financial security, retirement planning or even one’s way of life. Critical illness insurance protects a very real risk, but unlike life insurance, you will see the benefit of this product during your lifetime; it goes beyond leaving a sum of money for a beneficiary, and instead focuses on financial protection, allowing you to focus on your treatment, recovery, as well as the purchase of additional medical care if needed.

If you’re considering insurance, critical illness (CI) insurance may be a good option. In addition to providing lump sum payments in the event of a life-threatening illness, a number of critical illness policies offer you (at an additional cost) flexible options for the return of your premiums, should you live a healthy, illness-free life.

In the case that you become ill, you will receive the lump sum face amount, offering you financial protection. And if you don’t become ill, well, you can opt to receive all of your money back at a later date to put towards retirement or other expenses – what you choose to spend it on is entirely up to you!

Critical Illness Insurance – Financial Protection or your Money Back - Inner Image

Let’s have a look at Tom, a 40-year-old, non-smoker who recently purchased a critical illness policy with $100,000 of coverage, and added a return of premium option starting after 5 years, all at a monthly premium of $190. The table below demonstrates Tom’s return of premium over time:

YearCumulative PremiumCoverage AmountReturn of Premium*

(Based on iA Transition Critical Illness Insurance, T75 coverage with Flexible Return of Premiums 15 years, illustration as of February 10, 2021)
*Upon cancellation of policy

A CI policy is the way to go. Not only does it offer you the ability to protect your finances and lifestyle, it also allows you to receive all of your premiums back should you live a long and healthy life – we’re aspiring for the latter!


1.    Bank of Montreal. Critical Illness – FAQs | BMO Bank of Montreal. BMO.