Critical illness, disability or life insurance: the comparison to make the right choice

These three insurances protect against different risks. Understanding when each pays avoids unpleasant surprises. Here is a simple comparison, with the critical illness insurance at the center.

The comparative table

Summary of the three types of protection:

General information: Contracts vary by insurer.

When each pays

Life insurance: upon death, to the beneficiaries you designate. Critical illness insurance: during your lifetime, when you are diagnosed with a covered illness. Disability insurance: every month, while you can’t work, according to the terms of the contract.

How to combine them

A person with a family and a mortgage may need all three at different levels: life insurance to protect loved ones, disability to replace income, and critical illness for a lump sum at diagnosis. The order of priority depends on your situation.

Which risk is more likely?

There is no universal answer. For a person in their forties, the risk of long-term incapacity for work is often compared to that of a serious diagnosis; for a family with young children, protection in the event of death is a priority. The important thing is to cover first what would put your loved ones in difficulty.

Common mistakes

Relying solely on life insurance when a work stoppage is more likely than death. Believing that the employer’s group insurance is enough, when it ends if you leave the job. Ignoring exclusions and waiting periods when comparing.

Service throughout Quebec

Partner firms registered with the AMF serve clients in Montréal, Québec City, Laval, Gatineau, Sherbrooke, Trois-Rivières, Saguenay and Longueuil, by telephone or online.

Frequently asked questions