Critical Illness Insurance with LTC Component


  • Critical illness insurance pays a lump sum benefit if you are diagnosed with one of the covered conditions listed in the contract and survive the waiting period, typically 30 days. There are over 20 covered conditions listed in the contract with the main 4 being heart attack, stroke, life threatening cancer and MS. Also included is a long term care (LTC) benefit which pays up to 1% of the lump sum per month, if you satisfy the definition of dependency. The policy can be converted to a stand- alone LTC plan after the policy has been in force for 20 years.
  • A full application and additional medicals are required in order to qualify for coverage.
  • Provides a tax free monthly benefit if you are unable to perform 2 out of 6 activities of daily living (ADL) or suffer a cognitive impairment (referred to as dependency).
  • The waiting period before benefits are payable is 90 days.
  • Pays a benefit regardless of whether care is received in a qualifying facility or in the home.   The benefit amount is doubled if you are in a qualifying facility.
  • Payments continue until recovery or until the monthly payout equals the sum insured. Maximum payout is $500K.
  • No need to submit receipts for care while on claim.
  • Premiums are age based when the policy is issued and remain level for the life of the contract.
  • Premiums are guaranteed and are payable for the life of the policy. You can also select a 15 year payment period, where no further payment is required after 15 years.
  • Premiums are waived if on claim for LTC benefits.
  • The policy ends if a critical illness benefit is paid out. If no benefit is payable and you reach age 100, the sum insured is paid out as a benefit.  
  • Ability to add a Return of Premium option in which all premiums paid are refunded if the critical illness policy is cancelled anytime after the 15th policy year and no covered condition has been paid. It is possible to take the return of premium and convert to a LTC policy. A Return of Premium at Death can also be added in which all premiums paid are refunded if you die and no covered condition has been paid.

 This summary serves as a guide only.   See the contract for full details.


Additional Resources:

Life Pay Rate Card

15 Pay Rate Card

Sample Contract

Return of Premium Sample Contract