Can You Get Critical Illness Insurance Through Your Employer?

Many Canadians are surprised to learn that some workplace benefit packages include critical illness insurance, a policy that pays a tax-free lump sum if you are diagnosed with a serious medical condition like cancer, stroke, or heart attack. This type of coverage can offer peace of mind and valuable financial support during a health crisis, especially if recovery affects your ability to work.

But employer-provided plans often differ from individual policies in coverage amount, flexibility, and portability. Knowing what your group plan includes helps you decide whether it is enough on its own or should be supplemented with personal insurance.

What Employer Coverage Typically Includes

Workplace critical illness insurance is often offered as part of a broader group benefits package. It may be:

Automatically included for all eligible employees
Offered as an optional add-on you can elect during enrollment
Provided at no cost or shared cost between employer and employee

Here is what is typically included:

Feature	Group Coverage Through Employer
Coverage amount	Usually between $10,000 and $50,000
Eligibility	Active employees enrolled in group benefits
Covered conditions	Core illnesses like cancer, heart attack, and stroke
Application process	Usually no medical questions or underwriting required
Portability	Coverage usually ends when you leave your job
Supplemental options	May allow additional buy-up coverage at group rates

Pros and Cons of Employer Critical Illness Insurance

Advantages:

Affordable or included at no cost
Easy to obtain with minimal paperwork
Immediate financial relief during a major illness

Limitations:

Payout amounts are often lower than individual needs
Coverage ends with your employment unless conversion is offered
Less control over definitions, exclusions, and claim process

Group Coverage May Not Be Enough

Employer-provided critical illness insurance is a great foundation, but for many people, it is not sufficient on its own. A $25,000 lump sum may help with some expenses, but if you are off work for months, face out-of-pocket medical bills, or want access to private care, that amount may run out quickly.

You should consider personal critical illness coverage if:

You rely heavily on your income to support a household
Losing your income due to illness could impact mortgage payments, utility bills, and other fixed expenses your family depends on.
You do not have long-term disability insurance
If you are not protected by an income replacement plan, a lump sum can serve as a financial buffer during recovery.
You want to ensure continuity of coverage beyond your current job
Group plans typically end when your employment does. An individual policy stays with you, providing uninterrupted protection.

How to Decide If You Need More Protection

Start by reviewing what your employer plan provides. Then consider:

Your income and expenses
Think about how long you could manage your household bills and daily costs without income support.
The financial impact of a health interruption
Factor in potential costs such as private treatment, travel for care, home adjustments, or hiring help.
Access to disability insurance or savings
Evaluate whether you already have financial reserves or insurance to cover ongoing needs if you are unable to work.
Whether your current lifestyle or debts would be at risk during recovery
Consider how missing even a few months of income could affect debt repayment, childcare, or other financial goals.

Note: Many insurers allow you to purchase individual critical illness insurance to supplement what you receive through work. This can help bridge the gap if your employer coverage ends or proves too limited.

Your Health Can Change, and So Can Your Coverage

Critical illness insurance through work is a useful benefit, but it may not stay with you through all stages of your career. Evaluating your group plan early and considering how it fits into your long-term health and financial strategy can help you stay protected and prepared, no matter what comes next.