Most critical illness insurance payouts are a cash lump sum. There are a few companies that offer an limited income to those covered, but for the most part your money will simply be given to you all at once to use as you see fit. It is your at your discretion to use the money any way you want. Here are some of the most useful ways to use your capital:
It is also important to note that the payout of your insurance is independent of your ability to work. While the illnesses covered by the insurance can be debilitating and prevent you from supporting your family, it is possible that you can continue to work before and after the payment. Payout is contingent only upon the diagnosis of an aforementioned disease and can simply be a supplement to current income.
RBC has published the results of a critical illness insurance survey in Canada.
