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Do I Need Both Life & Critical Illness Insurance?

No one can predict the future, which is why it’s so important to prepare for the unexpected by investing in life insurance or critical illness insurance. However, you might be wondering what the differences are between the two and whether there are any benefits to investing in both. At Desjardins Financial Security Independent Network, we’ve been helping individuals and businesses find the best insurance solutions for years.

Here, we’ve compiled some of the key distinctions between life and critical illness insurance and detailed some specifics of each type, so read on!

What are the Key Differences?

Although both life and critical illness insurance offer beneficiaries a lump-sum payment, one of the key difference between the two is that life insurance protects your family should you die; critical illness insurance helps protect you, your assets, and your family if you’re still alive and diagnosed with a critical illness.

In both cases, you’ll receive a tax-free lump-sum that beneficiaries will be able to use as they like. However, with both you’ll also need to choose the extent of coverage needed, in addition to the length of time

What are Some of the Common Things Life & Critical Illness Insurance Covers?

In both cases, life and critical illness insurance are designed to cover almost any expense for a specific period. Some of the most common uses are to meet financial obligations like:

  • Living needs such as childcare or health coverage for your spouse or significant other, medical procedures, home renovations, daily activities like buying groceries, and transportation costs to and from doctor appointments.
  • Life insurance will cover important end-of-life expenses, such as paying off debts, as well as funeral taxes and arrangements for your memorial ceremony. You can also provide your loved ones with a nest egg to help them manage their expenses in the coming years.

Should I Invest in Both Life & Critical Illness Insurance?

Many often think that you’ll need to choose one or the other type of coverage, but the reality is that there are many hybrid-plans out there that offer the best of both worlds.

Contact DFSIN today to learn more about individual healthcare coverage?

If you’re interested in investing in individual insurance coverage or want to learn more about our business options, contact us today. You can place your trust in the hands of our team at Desjardins Financial Security Independent Network. Contact us online or call (416) 695-1433.