Life insurance protects the people you leave behind. Living benefits protect you — paying out while you're alive, if illness or injury takes you out of work.
A tax-free lump sum paid directly to you on diagnosis of a covered condition — cancer, heart attack, stroke and others, depending on the policy.
Replaces a portion of your income if you can't work due to illness or injury — the coverage most people are relying on their employer for, and often don't actually have.
A no-medical-exam option for people who've been declined elsewhere or have significant health history — smaller coverage amounts, but guaranteed acceptance.
Mortgage, groceries and debt payments keep coming whether or not you're able to work.
Group benefits are often capped, temporary, or disappear entirely if you leave the job.
Treatment, travel, home modifications and time off aren't fully covered by provincial health plans.
Critical illness pays a one-time lump sum on diagnosis of a covered condition, regardless of whether you can still work. Disability insurance pays ongoing monthly income specifically because you can't work due to illness or injury. Many people carry both, since they cover different gaps.
Usually only partially. Group disability coverage is often capped, temporary, and disappears the moment you leave the job. Group critical illness coverage, if you have it at all, is typically a small, fixed amount.
Coverage varies by insurer and policy, but most cover cancer, heart attack and stroke at minimum, with many policies covering 20 or more conditions. The specific list and how each condition is defined matters — worth reviewing together before you buy.
Guaranteed issue life insurance is designed for exactly this situation — no medical questions, guaranteed acceptance — though coverage amounts are smaller and cost more per dollar of coverage than standard policies.