Disability and Critical Illness Insurance

When we’re busy trying to keep up with everyday life, the last thing we want to think about is getting sick – especially with an illness like cancer or heart disease. Hopefully, this won’t happen to you, your spouse, or business partner. But if it does, can you cope financially? Will you be able to take time off work to recover without worrying about paying bills?

The good news is, you won’t have to worry about money if you get sick, as long as you plan ahead. And you can do this with two forms of insurance.

Most people have heard of the first type, which is long-term or short-term disability insurance. With this insurance, you receive a monthly benefit if you’re injured or become ill and are unable to work. Terms vary greatly, depending on the policy and insurance company. If you are self-employed, you can purchase disability insurance. If you’re employed, you may have insurance through your employer. Still, some employees opt to supplement their disability insurance with an additional policy of their own.

Critical Illness insurance is the second option. This is less familiar to many people, yet it’s an important option to consider.  Critical illness insurance pays you a pre-determined, lump sum of money, usually within 30 days of being diagnosed with a serious disease or condition.

This insurance normally covers up to 24 conditions including cancer, heart attack, stroke, as well as severe burns, deafness, and paralysis. The one-time payout is tax-free, and is yours to use as you wish.

There are several differences between disability and critical illness insurance as well as various ways to use them.  Consider these scenarios:

  • John and his wife, Theresa, both have disability insurance through their employers. However, their policies will not provide enough income if one of them is unable to work. So, they each have a critical illness policy. This will provide tax-free payment of $100,000.00 if one of them becomes seriously ill. They will have enough money to pay off their debts, as well as a cushion for future expenses.
  • Mary is self-employed. She has a critical illness policy that will allow her to take time off work for as long as a year, if she needs to.  If she is able to return to work sooner, she can use the remaining money as she sees fit.
  • Bill owns a business, so he has the same disability insurance plan that he provides his employees. He also has a critical illness policy to protect his business. If he can’t work for an extended period, he can use the lump sum payment for things like hiring part-time replacement help, or maintaining cash flow.  Bill’s wife is a stay-at-home mom with their young children. She has a small critical illness policy that will keep the household running if she ever needs time to recover.

Don’t let a critical illness or injury run your family into debt

We can help you protect your family’s income with a critical illness or disability insurance plan. To make sure you get the best coverage for your money, we look at your:

  • Existing coverage through employers and/or your business
  • Monthly expenses for both your family, and your business

Then, we consider options such as policies that cover you for a 10-year term, or up to the age of 75.  Finally, we shop the entire insurance market in Canada to find the best plan(s) for you.

There are several ways to use disability and critical illness insurance to protect you and your family.  Arrange your no-obligation meeting today. We’ll help you protect your family’s finances, at a price that fits your budget.