Is Critical Illness Insurance Right For You?
Do you need critical illness insurance?
Illness is a part of life. As the pandemic highlighted, it can come at any time, whether or not we are prepared for it, and the impacts can be far reaching. In addition to the potential physical and emotional challenges of dealing with an illness, the financial impact from an inability to work can be the greatest challenge of all. Thankfully there are insurance and employee benefit policies which can help ease the impact.
Critical Illness Insurance vs. Disability Insurance
While many Canadians have heard of critical illness insurance, there is often confusion around how it differs from disability insurance, and which of the two is a better option. Neither is better nor worse, but the two are different.
- Disability insurance is more common, covers a broader range of illnesses, and works by replacing a portion of an employee’s income if they become disabled and unable to work.
- Critical illness insurance, on the other hand, covers a smaller number of severe illnesses, such as cancer, heart attack and stroke, and provides for a tax-free, lump-sum payment to the employee. This payment can be used at the employee’s discretion, whether to cover the cost of medical treatments not otherwise covered, taking time off work to focus on treatment and recovery, or to take care of other family needs.
Is Critical Illness Insurance Right for you?
While critical illness insurance can be beneficial to all Canadians, it is especially beneficial to employees who have significant financial obligations (such as family and/or a mortgage) which they would struggle to meet if they were sick, even with disability insurance.
If you are interested in learning more about critical illness insurance and how it could complement your existing employee benefits plan, please reach out to a Benefit Strategies advisor to find out more.