Critical illness insurance for business owners

A serious illness could affect your ability to manage your business. With the help of a lump sum benefit, your business can run smoothly while you focus on getting healthy.

What is critical illness insurance?

Thanks to modern medicine, more people survive serious illness. Unfortunately, the costs associated with recovery can place a strain on the financial resources of you and your business.

Consider this sobering statistic: one in 2.2 men and one in 2.4 women living in Canada will develop cancer during their lifetime.1 However, 63 per cent of Canadians diagnosed with cancer are expected to survive.2

Running a business is a labour of love, and a tremendous amount of work. Without proper protection, all the time and money spent building your company could be at risk. The lump sum payment you receive could help you focus on your recovery while your business continues to operate.

Who is it for?

Critical illness insurance can be suitable for anyone seeking financial protection to help cover the costs associated with recovering from a life-altering illness. It is also ideal for business owners that may need help to cover operating costs while they are recovering.

How does it work?

You receive the tax-free lump sum payment if you meet the survival period requirement for a covered critical illness and are free to spend the money as you choose — such as to help cover business expenses, lost income, medical equipment or even to pay for private nursing or out-of-country treatment. It can help you where you need it most so you can focus all your energy on recovering.

How does it benefit your business?

Keep your business running smoothly while you recover
There are numerous ways you could use the money you receive from critical illness insurance to help with your recovery while allowing your company to operate normally.

  • Remain on-schedule with debt repayment and salary obligations to key employees.
  • Shore up your income while you spend time away from work to focus on your health.
  • Pay for prescription drugs, medical devices and other treatments that may not be covered by government or other benefit plans.
  • Travel for alternative treatments available outside Canada.

Safeguard your retirement
The sudden emergence of a life-changing illness could force you to withdraw money from your business investments, incurring taxes and affecting your retirement plans in the process. The safety net provided by critical illness insurance can help your business to continue to operate without altering your carefully planned retirement goals.

1 Canadian Cancer Society, Canadian Cancer Statistics, 2014.

2 Canadian Cancer Society Advisory Committee on Cancer Statistics, 2014.