Critical illness insurance cost in Canada: what sets your premium
Age, smoking and plan length move the price most. Return of premium can give it back, if you keep the policy long enough.
Two people the same age can be quoted very different prices for the same $100,000 of critical illness cover. The gap comes from a handful of choices you make and a few facts about you. Once you know which is which, you can compare quotes properly and decide where to spend.
In short
Critical illness premiums depend on your age, sex, smoking status and health, and on the amount (usually $25,000 to $2,000,000), the plan length and any return-of-premium rider. A 10-year renewable plan is cheapest at first but goes up at each renewal; a level plan to 75 or 100 costs more up front and stays fixed. Return of premium raises the price, and pays back only if you keep the policy for years: under one BMO option, 50% at year 10 and 100% from year 15.
The nine things that set your critical illness premium
The first four are about you. The rest are choices you can change on the quote.
| Factor | Effect on the premium | What to know |
|---|---|---|
| Age when you apply | Older applicants pay more. | Renewable plans are re-priced at each renewal using your age then. |
| Sex | Priced in, where the product uses it. | The difference varies by insurer and age, so compare quotes for your own details. |
| Smoking or nicotine | Smoker rates are higher. | Most insurers look back 12 months. |
| Health and family history | Can add an extra premium, an exclusion or a decline. | Answer fully: a wrong answer can void the policy. |
| Amount | More cover costs more, but per $1,000 it can step down. | BMO prices in four bands from $25,000 to $2,000,000. |
| Plan length | 10- or 20-year renewable starts cheapest; level to 75 or 100 costs more up front. | Renewable premiums rise at each renewal. |
| Paying for fewer years | 15-pay or 20-pay costs more per year. | You stop paying after 15 or 20 years and keep the cover. |
| Return of premium | Adds a rider premium. | Refunds part or all of your premiums later, if you qualify. |
| Fees and payment mode | A policy fee and a monthly charge. | BMO: $50 a year policy fee; monthly payments include modal loading. |
Renewable vs level: how the plan length changes what you pay
Most Canadian insurers offer the same basic shapes. These are BMO's and Equitable's published plans.
| Plan | How the premium behaves | Cover ends | Issue ages (example) |
|---|---|---|---|
| 10-year renewable | Lowest to start. Renews every 10 years at a higher premium set by your age at renewal. | Age 75 | BMO 18 to 65; Equitable 18 to 65 |
| 20-year renewable | Fixed for 20 years, then renews higher. | Age 75 | BMO 18 to 55 |
| Level to 75 | Same premium every year until 75. Costs more than a 10-year plan at first. | Age 75 | BMO 18 to 65; Equitable 18 to 64 |
| Level to 100 | Same premium for life. The highest regular premium. | Age 100 | BMO 18 to 65; Equitable 18 to 65 |
| 15-pay or 20-pay | Higher premium for 15 or 20 years, then nothing more to pay. | 75 or 100, by plan | BMO 15-pay to 100: 18 to 65; Equitable 20-pay to 75: 18 to 54 |
How to compare them fairly. For example, suppose you are 35 and need cover until your mortgage is gone at 60. A 10-year plan would renew at 45 and again at 55, each time at a higher rate. Ask for the renewal premiums on the quote, add up what you'd pay to 60, and compare that total with a level-to-75 plan. If you also want cover in retirement, only a level plan keeps the price fixed.
A level plan to 100 is the only shape that covers you for life. It suits people who want to be protected in their 70s and 80s, when a heart attack or stroke is more likely, and who can afford the higher premium now.
Return-of-premium calculator
Enter two real quotes for the same plan, one with and one without return of premium on surrender. See what you'd get back and what the cover really cost you.
Uses BMO's published 15-year return-of-premium-on-surrender schedule as the example. The example premiums above are placeholders: replace them with the prices from your quote. The refund is paid when you cancel the policy without having claimed; check the policy for what happens to the rider after a claim.
| Policy year | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15+ |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Refund | 10% | 12.5% | 15% | 25% | 35% | 50% | 60% | 70% | 80% | 90% | 100% |
Ways to lower the cost without losing the cover you need
Buy sooner. Every year you wait, the starting premium rises, and a new diagnosis can lead to an exclusion, an extra premium or a decline.
Pick the amount from a budget, not a brochure. Work out how many months of income your household would need during treatment, and buy that. The critical illness insurance page has a gap calculator.
Match the plan to the need. If the need ends when the mortgage does, a 10- or 20-year plan may be enough. If you want lifelong cover, buy level to 100 early rather than renewing a 10-year plan into your 60s.
Skip riders you won't use. Return of premium only pays if you keep the policy for many years and never claim.
Quit nicotine for 12 months and ask the insurer to move you to non-smoker rates.
Pay annually if you can, to avoid the monthly charge.
What the premium buys
- Lump sum
- $25,000 to $2,000,000 (BMO, Co-operators); from $10,000 (Equitable)
- Conditions
- 25 at BMO and Co-operators; 26 at Equitable
- Early-stage
- Partial payouts for some early cancers and angioplasty at BMO and Equitable; Early Assist at Co-operators
- Survival period
- 30 days after diagnosis at BMO
- Waiting period
- 90 days from the policy date for cancer at BMO
Questions about critical illness insurance cost
How much does critical illness insurance cost in Canada?
There is no single price: your premium depends on your age, sex, smoking status, health, the amount, the plan length and any return-of-premium option.
The quickest way to see real numbers is the critical illness quote form, which shows several insurers side by side for your age and amount.
Why does my age matter so much?
Premiums are set using your age when the policy starts, and on 10- and 20-year renewable plans they are reset at each renewal using your age then.
On level plans to age 75 or 100, the premium you start with is guaranteed for the life of the policy, so buying younger locks in a lower rate.
What counts as smoking for critical illness rates?
Generally any tobacco, nicotine or e-cigarette use in the last 12 months.
Empire Life, for example, uses a 12-month test, and may give non-smoker rates to cannabis users who haven't used tobacco, nicotine or e-cigarettes in that time. If you quit, ask to be re-rated after 12 months.
Is 10-year or level-to-75 critical illness cheaper?
A 10-year renewable plan costs less at the start, but the premium jumps at each renewal; a level plan to 75 costs more at first and never goes up.
If you need cover past your 50s, add up the renewals before you decide. Renewable and level plans at BMO and Equitable both end at age 75; only the to-100 plans last for life.
Is return of premium worth it?
It is worth it only if you are confident you will keep the policy long enough to qualify for a large refund, usually 15 years or more.
Under BMO's 15-year surrender option, you get nothing back before year 5, 50% at year 10 and 100% from year 15. Use the return-of-premium calculator with real quotes.
Does a bigger amount cost less per $1,000?
Often a little, because many insurers price in bands.
BMO, for example, uses bands of $25,000 to $99,999, $100,000 to $249,999, $250,000 to $499,999 and $500,000 to $2,000,000, plus a $50 annual policy fee that is spread over more cover on larger policies.
Can a health condition raise my premium?
Yes. The insurer can add an extra premium, exclude a related condition, or decline, depending on your history.
Diabetes is a common example: Equitable does not offer its EquiLiving critical illness plan to people with insulin-dependent diabetes. See life insurance for diabetics.
Is paying monthly more expensive than annually?
Usually slightly, because insurers add a modal charge to monthly payments.
BMO lists "modal loading" as part of the premium on monthly payments. Ask for both monthly and annual prices before you choose.
Written by Pankaj Bhatia, CHS, PFA
Insure In Canada Inc. · Licensed in Ontario, Alberta, British Columbia, Manitoba, Saskatchewan, New Brunswick and Nova Scotia
Pankaj compares critical illness plans from iA, Empire Life, Foresters, Co-operators, Wawanesa, BMO Insurance, Equitable Life and Assumption Life, and shows clients the renewal premiums and refund schedules next to the starting price.
Call 647-640-2222 · WhatsApp · info@pankajbhatia.ca · About Pankaj
Sources and related pages
Plan details reviewed October 2026 from insurers' published guides. Premiums, definitions and riders change; the issued policy governs. A quote is not an offer of insurance.