Understanding What is Critical Illness Insurance:
As a small business owner, you likely spend much time growing and investing in your business, right? Well, what if the unthinkable happened and you were diagnosed with a life-threatening illness? You probably couldn’t commit too much time to work during your recovery, and you might have to leave things up to your business partners in your absence. What is critical illness insurance, and how can it help in such situations?
Critical illness insurance for business owners ensures you can recover while keeping an eye on your important assets. The team from Desjardins Financial Security Independent Network has helped hundreds of business owners protect their companies after falling victim to a critical illness. Let’s learn why having critical illness insurance for business owners is key!
Who Needs a Critical Illness Insurance?
If you were diagnosed with a critical illness, do you know what would happen to your small business? Who would take your place? Would your partners be able to buy you out? These are the types of questions the team from Desjardins Financial Security Independent Network (DFSIN Toronto West) can help you answer with our critical illness plans for business owners. We can help you protect your assets and see that your business still flourishes in your absence.
What Falls Under Critical Illness Insurance?
Critical illness insurance typically covers severe health conditions such as heart attacks, strokes, cancer, and major organ transplants. The exact conditions covered can vary by policy, so reviewing your coverage details with your provider to understand what falls under critical illness insurance is essential.
Is Critical Illness Insurance Taxable?
The tax implications of critical illness insurance can depend on several factors, including the jurisdiction and the nature of the policy. Generally, the benefits received from a personal critical illness insurance policy are tax-free in Canada. However, it’s advisable to consult with a tax professional or financial advisor to understand the specifics related to your policy.
Other Benefits of Critical Illness Insurance for Small Business Owners
In addition to helping you protect your assets, there are also a number of other benefits for business owners who have critical illness insurance, such as:
- Limiting Your Financial Loss: With business-critical illness insurance, you’ll limit your losses by receiving a one-time, lump-sum to help hire replacements and cover any other financial losses for your business.
- Keep Financial Goals On Track: Being unable to work can certainly be a burden for a small business owner, but with critical illness insurance, you’ll be able to use the money you receive as you see fit, investing in your business to keep its financial goals on track.
- Buy Back Shares: Should you be forced to sell the shares you have in your business due to your critical illness, you can easily by them back at a later date once you’re able to get back to work again.
Also Read: Misconceptions About Critical Illness Insurance
FAQs About Critical Illness Insurance:
Is Critical Illness Insurance Worth It?
Absolutely. For business owners, critical illness insurance is a crucial safety net. It ensures that even in the face of serious health issues, your business can continue to operate smoothly, and your financial goals remain on track.
How Much Critical Illness Insurance Do I Need?
The amount of critical illness insurance you need can vary based on several factors, including the size of your business, your financial commitments, and your personal and professional goals. It’s essential to consult with experts to determine the right coverage amount for your specific needs.
Can I Cancel Critical Illness Insurance?
Yes, you can cancel critical illness insurance if you decide it’s no longer needed. However, it’s important to consider the potential consequences, such as losing your coverage during a critical illness. Before deciding, discuss your options with your insurance provider to fully understand the implications.
Contact us today for more information about critical illness insurance for business owners!
If you want to learn more about how you can protect your business assets should you be diagnosed with a critical illness, contact Desjardins Financial Security Independent Network today. Get a FREE quote online or call (416) 695-1433.
