Lucy Lukic works as an insurance advisor at iA Private Wealth in Hamilton, Ontario. She has over 20 years of experience in finance and insurance and is known for creating personalized insurance plans for her clients. Lucy has held leadership positions at CIBC, HUB Financial, and Burgeonvest Insurance. We spoke with her about the relevance of critical illness insurance and why Canadians should include it in their financial plans.
Q: Canadians have heard of critical illness insurance, but don’t always understand what it’s about. How do you explain it to your clients?
LUCY LUKIC:
Critical insurance is essentially a lump sum payout a person gets when they are diagnosed with a health problem like cancer, heart attack, stroke, or another serious disease. Critical insurance is not tied to whether or not you can work, like disability insurance. Instead, it offers some extra financial breathing room when your life suddenly turns upside down due to a severe health problem. People typically underestimate the hidden costs of recovery, like out-of-pocket medical bills, travel for treatments, or time off for family members who take on the role of caregivers. That one-time benefit can help supplement income, pay off debt, or fund private care options that support recovery.
Q: Why is critical illness insurance becoming more relevant for Canadians now?
LUCY LUKIC: People are living longer, but not necessarily healthier. Survival rates for serious health problems have improved drastically in Canada. Many types of cancer now have a survival rate of 60%. But surviving often means months or years of rehab, lifestyle adjustments, and reduced income. Simultaneously, inflation and mortgage costs are putting more financial strain on families. People have less savings to fall back on if someone gets diagnosed with cancer or has a heart attack. The financial impact can be just as stressful as the medical situations themselves. Critical illness coverage helps prevent people from facing both health and money stress.
Q: How does critical illness insurance fit with disability insurance or life insurance in a financial plan?
LUCY LUKIC: I like to consider them as three parts of one safety net. Life insurance protects your family if you pass away. Disability insurance protects your income if you lose your ability to work. Critical illness covers you if you are seriously ill but still alive and dealing with major expenses. Some clients think that having life or disability insurance is enough, but those policies have different triggers. Disability insurance only pays if your illness prevents you from working. But what if you can technically still work, just not at full capacity or while going through treatments? That is where a lump sum from a critical illness policy can make a huge difference.
Q: What are some myths people believe about critical illness insurance?
LUCY LUKIC: Most people believe that critical illness is only for older people, which is not true. Young adults often get the best rates and are, in many cases, just as likely to get diagnosed with a serious illness that disrupts their careers. The second myth is that it’s too expensive, but compared to the potential benefit, it is often very affordable, especially if you apply for coverage while you are healthy. Another thing, people think that public healthcare will cover everything. Canada’s healthcare system is better than the U.S., sure, but it does not cover lost income, childcare, home adjustments, or trial treatments. Critical illness insurance gives you choice and the ability to focus on recovery without worrying about financial burdens.
Q: What would you say to Canadians who want to add critical illness insurance to their plan?
LUCY LUKIC: Know what coverage you already have through your work or personal policies and see where the gaps are. Then talk to an advisor who can create a personalized coverage plan based on your situation. The most important thing is to take action while you’re healthy. Once a diagnosis happens, it is usually too late to qualify. Even if you never end up using it, knowing that you have that safety net brings peace of mind. You’re not expecting the worst when you apply for critical illness coverage. You’re setting yourself up to be prepared for what is possible.
