Illness and disability pose legitimate concerns where your financial security is concerned. If you want to protect yourself and your family from the financial consequences of such risks, this brief glossary can help.

Illness

Illness can be defined as a change in health status. If manifested as discomfort or malaise, it is considered benign. An ailment, disorder or condition with a name bearing the suffix "pathy," such as "cardiopathy" (heart disease), on the other hand, is a serious, incurable or terminal illness.

Health Insurance

Health insurance, which is also referred to as accident/illness insurance, healthcare insurance, or complementary healthcare insurance covers all or a portion of the costs incurred to obtain medical care.

This type of coverage supplements provincial health insurance plans and even the group insurance plans offered by employers.

Critical Illness Insurance

Critical illness insurance provides for a lump-sum payment, after a certain waiting period, upon the diagnosis of any of the critical illnesses listed in the contract. It is designed to help you preserve your quality of life.

The critical illnesses and surgical procedures generally covered by life insurance companies (such as heart attacks, strokes, coronary bypass surgery, cancer, Alzheimer's disease) are specified in your critical illness insurance policy.

Disability

The term "disability" refers to the health status of someone who is temporarily or permanently unable to work following an injury or illness.

Disability insurance

You can take advantage of disability insurance guaranteeing benefits in accordance with the conditions and period stated in your contract. Because the definition of "disability" varies from one policy to another, make sure to read your contract or application carefully.

Disability insurance is especially attractive for self-employed individuals and employees without a group insurance plan. Benefits are usually integrated with those paid by private or public plans (such as the Canada Pension Plan, the Quebec Pension Plan, and any applicable workers' compensation). The total amount paid thus does not exceed the wage percentage stated in the contract.

Premium

A premium is the payment made by policyholders to ensure their policy remains in force.

Benefit

A benefit is the amount paid out by the insurer to someone with insurance coverage, whether this is the person who has taken out the coverage (the policyholder), another individual also insured by the contract, or the beneficiary designated in the contract by the policyholder.

Find out more

For more information, please consult our Glossary, or the I'd Like Information on Insurance Products section of our Website.