Business-owned critical illness insurance
Protect Your Business from Unexpected Health Crises.
Keep Your Company Running Strong When Key People Face Critical Illness
What Is Business-Owned Critical Illness Insurance?
“Business-owned critical illness insurance” (also known as corporate critical illness or key person critical illness) is a policy owned by a company that provides a tax-free lump-sum payment if a covered person (owner, partner, key employee) is diagnosed with a serious illness (e.g. cancer, heart attack, stroke).
The funds can help the business manage financial disruption, cover fixed costs, and maintain operations during recovery.
Key characteristics include:
- Lifetime insurance protection (death benefit guaranteed, depending on product)
- A savings / investment component (cash surrender value) that builds up inside the policy
- Owned and premium‐paid by the company, with the company usually named beneficiary
- Often used for business, tax, estate, continuity, or succession planning purposes
Receive a payment
Your business receives a one-time payment that it can use as needed.
Consult health experts
Experienced specialists can help you resume your normal activities.
Take advantage of additional support
During your recovery, get services from professionals.
What is critical illness insurance for business owners?
If you are diagnosed with a critical illness, your business can get a tax-free payout. Medical conditions covered may include, but are not limited to, cancer, heart attack and stroke.
In addition to protecting you, critical illness insurance can also allow you to insure key employees.
How does critical illness insurance work?
- Choose the amount of protection.
- When your proposal is approved, the company pays the premiums.
- If diagnosed with a critical illness, submit a claim.
- Depending on the critical illness diagnosed, a waiting period may apply.
- You receive the payment and your policy ends.
Why buy critical illness insurance for your business?
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It happens more often than you think
Over the course of their lifetime, approximately one in three Canadians will experience a serious illness. -
Take care of your recovery
Take care of yourself knowing that the benefit paid can help you financially.
What is critical illness insurance for business owners?
f you are diagnosed with a critical illness, your business can get a tax-free payout. Medical conditions covered may include, but are not limited to, cancer, heart attack and stroke.
In addition to protecting you, critical illness insurance can also allow you to insure key employees.
Your company
Your business receives a one-time payment that it can use as needed.
The future of your business
Experienced specialists can help you resume your normal activities.
Protecting your business assets
During your recovery, get services from professionals.
Much more than a payment
To aid your recovery, access to medical treatment and emotional support will help you take care of what’s most important: your health. You will be able to consult the best health specialists, in addition to obtaining professional help to deal with the effects of your disease.
If you are not diagnosed with a critical illness, what happens?
If you don’t have a critical illness, you have the option of adding a refund of premium endorsement to your insurance policy and recovering some or all of your money. Your policy will end when the premium is refunded.
What should I choose, critical illness insurance or disability insurance?
Depending on your situation, you may only need critical illness insurance or disability insurance. However, in most cases, you need both in order to protect yourself well.
To mitigate the impact of a disability or critical illness, critical illness insurance and disability insurance go hand in hand.
| Critical illness insurance | Disability insurance | |
|---|---|---|
| Payment type | One-time large tax-free payment | Monthly income replacement payment |
| Under what circumstances is payment made? | If you are diagnosed with a covered illness | If you are unable to work due to injury or illness |
| Waiting period | No waiting period in some cases | There is usually a waiting period |
| Duration of protection | Protection for life | Coverage ends at 65 |
| What can this protection be used for? | Large amounts of money that you use as you wish, for example to pay medical bills, make your mortgage payments or pay off your debts. | Pay your monthly expenses |
Have any question about insurance?
Our team can answer all your questions, understand your situation and help you build a plan