Critical illness insurance pays a one-time, lump-sum benefit if you are diagnosed with a covered critical illness and survive a specified waiting period (usually 30 days after diagnosis). Commonly covered conditions include cancer, heart attack, stroke, coronary artery bypass surgery, kidney failure, major organ transplant, and multiple sclerosis. The lump-sum payment is tax-free and can be used for any purpose — covering lost income, paying for treatments not covered by provincial health plans, modifying your home, or simply covering living expenses while you recover. Critical illness insurance is separate from health insurance and disability insurance. It requires medical underwriting and is generally more expensive at older ages due to higher incidence of critical illnesses.