Critical illness insurance: is it really necessary in Quebec?

Critical illness insurance isn’t necessary for everyone. But some people do get a real benefit from it. Here’s an honest analysis.

What the RAMQ covers

The public plan covers insured physician and hospital services. It does not compensate for loss of income, does not pay for out-of-plan expenses (certain medications, private care, travel) or everyday expenses during treatment.

What a critical illness insurance adds

It pays a lump sum, free to use, to diagnose a covered illness. You decide to use it for care, debts, childcare expenses or to reduce your work hours.

Who should think about it first

People with a mortgage and dependent children, self-employed people without a group plan, single-income families, and those with little savings to absorb several months without income.

Who can do without

People with significant savings, a solid group plan that includes critical illness insurance, or no dependents may find coverage less of a priority.

A numerical example

A serious diagnosis can result in several months of no income, transportation costs to a specialized centre, home help and medication not covered. If the monthly household income is $6,000 and it drops by half for a year, the shortfall exceeds $30,000, before medical expenses.

A lump sum of $100,000 can absorb this shock without affecting retirement savings or selling a home.

The arguments against, honestly

You pay premiums for years, and the benefit is only paid if the diagnosis meets the criteria of the contract. If you are in excellent health and otherwise well protected, the usefulness may be limited. This is why it is better to compare several coverages rather than buying out of fear.

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