Most Canadians have some life insurance and home or car insurance. What far fewer people have is coverage for the things that are statistically more likely to disrupt their finances than dying early: getting disabled, being diagnosed with a serious illness, or needing extended care later in life.
Disability insurance replaces a portion of your income, typically 60 to 70 percent, if you can't work due to illness or injury. A 35-year-old is actually more likely to experience a disability lasting 90 days or longer before age 65 than to die before 65. Your mortgage payment, groceries, and bills don't pause because your income does. Disability coverage is what keeps the rest of your financial plan from falling apart.
Critical illness insurance works differently. It pays out a tax-free lump sum if you're diagnosed with a covered condition, usually cancer, a heart attack, or a stroke. You decide what to do with that money. Take time off work, cover private treatment costs, pay down debt, or just breathe easier while you focus on getting better. It kicks in at diagnosis, so it fills a gap that disability insurance, which covers lost income over time, doesn't address on its own.
Long-term care insurance is for the later years. It covers the cost of personal care when a chronic condition or cognitive decline makes independent living difficult, whether that's in your own home with support, an assisted living facility, or a nursing home. A private long-term care facility in Canada can cost over $60,000 a year. Without coverage, that cost falls directly on retirement savings or family members.
All three of these coverages are cheaper when you're younger and healthy. Once you've been diagnosed with a condition, you often can't get covered at all. A thorough review of your insurance picture, not just life and property, is worth doing before you need it.