Advisors

Critical Illness Insurance

Instructor

Nayibe Lamilla Fajardo

18 Students enrolled

0 reviews

Description
Curriculum
FAQ
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CRITICAL ILLNESS INSURANCE

1

CRITICAL ILLNESS INSURANCE

47:42

This lesson provides a clear and practical overview of Critical Illness Insurance — what it is, how it works, who needs it, and how to present it effectively to clients. Advisors will learn how to position CI as a key component in a well-rounded financial protection plan, handle common objections, and illustrate real-world benefits through case studies. Ideal for new and experienced advisors looking to strengthen their client conversations and increase value through holistic planning.
2

ivari Critical Illness Illustration

3:51

In this lesson, you'll learn how to create a Critical Illness insurance quote using ivari’s digital illustration platform. We’ll walk through logging into the advisor portal, starting a new case, entering client data, selecting coverage, and generating a clear, professional proposal ready for client presentation or digital submission.
3

Industrial Alliance Critical Illness Illustration

9:13

This lesson will show you how to use Industrial Alliance’s EVO software to generate a Critical Illness insurance quote. You’ll learn how to launch the tool, input client information, customize coverage and riders, and produce a comprehensive illustration ready for client review or submission.
4

Desjardins Critical Illness Illustration

4:47

In this lesson, you’ll learn how to generate a Critical Illness insurance quote using Desjardins’ online illustration platform. We’ll guide you step-by-step through accessing the system, entering client details, selecting coverage and riders, and exporting a clean, professional proposal that’s ready for client presentation.
5

Sun Life Critical Illness Illustration

5:43

This lesson walks you through the process of generating a Critical Illness insurance quote using Sun Life’s digital illustration platform. You’ll learn how to navigate the system, enter client information, select coverage options, add riders, and create a client-friendly proposal that’s ready to present or send electronically.
6

Empire Life Critical Illness Illustration

8:22

In this lesson, you’ll learn how to use Empire Life’s illustration software to generate a customized Critical Illness insurance proposal. We’ll cover how to start a new case, input client details, select coverage, add optional riders, and export a professional quote. Perfect for advisors who want to present clear and compliant solutions with confidence.
7

Critical Illness Quiz

10 questions

What is Critical Illness Insurance?

Critical Illness Insurance provides a lump-sum, tax-free payment if the insured is diagnosed with a life-threatening condition covered under the policy (e.g., cancer, stroke, or heart attack). The benefit is paid regardless of treatment or recovery status.

How is Critical Illness Insurance different from Disability Insurance?

What can the CI benefit be used for?

The benefit can be used however the client chooses, including:

Private medical care or alternative treatments

Income replacement

Paying off debts (e.g., mortgage, credit cards)

Hiring in-home support or childcare

Travel for treatment or recovery

Who should consider getting Critical Illness Insurance?

CI is particularly recommended for:

Self-employed individuals

Families with young children

Business owners

Clients with high financial responsibilities

Anyone without group benefits or with limited savings

What illnesses are typically covered?

Coverage varies by insurer, but commonly includes:

Cancer (life-threatening)

Heart attack

Stroke

Coronary bypass surgery

Multiple sclerosis

Kidney failure

Organ transplant
Some policies include partial payouts for early-stage conditions.

What is the survival period?

Most policies require the insured to survive for at least 30 days after diagnosis to be eligible for the benefit.

Can I get my money back if I don’t use the insurance?

Yes, some policies offer Return of Premium (ROP) options:

On death: premiums are returned if the client passes without a claim

At maturity: premiums are returned if the policy ends without a claim

Can CI be added as a rider to another insurance policy?

Yes. Many insurers allow CI to be added as a rider to a life insurance policy (Term, Whole Life, or Universal Life), which may be more cost-effective.

How can I explain the value of CI to skeptical clients?

Focus on the financial gap that occurs when illness strikes:
Even with health insurance, clients face income loss, out-of-pocket costs, and unexpected lifestyle changes. CI provides the financial flexibility and peace of mind to focus on healing — not money.

Is the lump-sum benefit from CI Insurance taxable?

No. In Canada, the Critical Illness Insurance benefit is paid out tax-free, which means the full amount is available to the policyholder without any deductions.

Can a claim be denied even after a diagnosis?

Yes, in certain situations. Common reasons for claim denial include:

Failure to meet the survival period

Non-disclosure of pre-existing conditions

Diagnosis not matching the policy definition This is why accurate underwriting and full disclosure are essential during application.

Can someone have both CI and Disability Insurance?

Absolutely. In fact, combining both provides stronger protection.

CI gives immediate cash for recovery-related expenses

Disability Insurance provides income if the client can’t return to work
Together, they address different but complementary risks

Are there waiting periods before coverage begins?

Yes. Most policies have:

A 30-day survival period (after diagnosis)

A 90-day waiting period (after policy issuance) before some conditions like cancer are eligible for claims
Advisors should clarify these details during the sales process.

What’s the difference between standalone CI and a CI rider?

A standalone CI policy offers full flexibility and usually broader coverage.

A CI rider is attached to another policy (e.g., life insurance) and may be more affordable, but could have limited features or be dependent on the base policy.

Can CI be purchased for children?

Yes. Many insurers offer Child CI riders or policies that cover over 20 childhood conditions, such as:

Congenital heart disease

Cystic fibrosis

Type 1 diabetes
This can be added to a parent’s policy and is often very affordable.

What happens if the client develops an illness not listed in the policy?

If the condition is not explicitly covered, no benefit is paid. That’s why reviewing the list of covered conditions and explaining it clearly to clients is essential.

Can a client apply for CI Insurance after a serious diagnosis?

Usually no — CI is underwritten based on current health. A major diagnosis like cancer, stroke, or heart disease would typically result in a decline or exclusion. That’s why it's important to apply before any health issues arise.

What happens if a client cancels their policy early?

If the policy has no return-of-premium option, the client loses all paid premiums.

If it has ROP on surrender or maturity, they may receive a portion or full amount back — depending on the terms.

How often should CI coverage be reviewed?

It’s best to review CI coverage:

During annual financial check-ins

After major life events (marriage, children, new business)

If health or income changes significantly
Coverage may need to be adjusted to reflect the client’s evolving needs.

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