What is critical illness insurance?
Critical illness insurance (CII) provides a single payout in the event of a major health emergency, like a heart attack or cancer. It helps protect you by providing a lump sum payment, which you can use to pay for extra financial expenses. This is especially helpful if you are self-employed and your income is directly impacted by the time you spend working on your business.
Why is it so important for entrepreneurs?
Planning for your health is as essential as planning for your business. Getting seriously ill is expensive, and provincial health plans do not cover all costs. More people are surviving sudden illnesses like heart attacks, stroke, and even cancer, than ever before. Recovery can still be difficult and expensive. Critical illness insurance can help protect your business and income in the future. If you have a policy, you can focus on your recovery and worry less about your finances.
Critical illness vs life insurance:
While the two policies are often discussed in the same meetings, they are very different products. Critical illness is a policy in which you are the beneficiary, and it comes into effect if you are faced with a variety of health complications. The policy is there to help you financially with any unexpected costs associated with being diagnosed with a critical illness. Life insurance is a financial product that benefits dependants when you are no longer around. The payout for life insurance is provided to those after your death and is often called a death benefit.
While I feel it is important to have both, critical illness insurance is critical to entrepreneurs for the financial security it provides to their families and their business. With critical illness insurance benefits, you can concentrate on getting well rather than the added financial burden being sick can cause.
If you would like to learn more about life, critical illness, or disability insurance, contact us today. To find out how life insurance can help your business, download our handbook on Life Insurance for Entrepreneurs here.