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The Importance of Critical Illness Insurance
Did you know that 1 in 3 Canadians will face a serious illness in their lifetime? The financial fallout due to a critical illness can include potential revenue loss, increased debt loads, and strained client connections within your business.
Critical Illness insurance provides a lump sum benefit in the event an insured individual has been diagnosed with one of 20+ covered illnesses–including life threatening cancer, heart disease and stroke.
Critical illness insurance serves as a vital safeguard, ensuring that unforeseen health challenges do not threaten the foundation of your business that you’ve worked hard to build.
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1 in 3
Canadians will suffer a critical illness in their lifetime
Critical Illness Insurance
From Critical illness insurance to estate planning, we've got your back at every turn. Our commitment is about creating a personalized financial roadmap that aligns with your goals.
Clear, reliable, and tailored to your needs. We’re here to make your financial planning journey more accessible and secure.
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Effective Critical Illness Insurance Strategies
The Shared Ownership Critical Illness, also referred to as “Split-Dollar Critical Illness” or “Executive Health Security Plan (EHSP)” is a joint ownership insurance strategy that can:
Protect the Business: It shields the business from losses if a shareholder or executive faces a critical illness.
Enhanced Compensation: It offers an improved compensation opportunity.
Strategically enhance tax-sheltering: It serves as a tax-efficient way to access and redistribute capital.
Risk Management: In case of a critical illness, EHSP provides a tax-free lump sum cash benefit to the business. This money can be used for corporate needs like hiring a replacement, paying liabilities, or providing extra cash during the recovery from the loss of the shareholder/executive.
Supplemental Benefits and Retention Tool: A cool feature is that all premiums paid can be reimbursed to the shareholder/executive after a specific claim-free period. This creates an incentive for them to maintain a healthy lifestyle and stick around with the company. It's a win-win as it enhances their compensation package, offering a tax-free premium refund under the current tax structure
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Should I Consider Critical Illness Insurance?
Critical illness insurance is a valuable consideration for self-employed professionals like doctors, lawyers, accountants, engineers, architects, and dentists.
Instead of simply paying premiums to protect your business from financial loss due to a critical event, our strategy ensures that you derive value from your planning, even if a claim is never necessary.
Critical Illness policies allow for the potential reimbursement of all premiums as early as 15 years if no claims are made. Additionally, in the unfortunate event of passing away, all premiums can be refunded to a designated beneficiary. This approach provides a comprehensive and proactive financial security measure, ensuring your financial planning remains fruitful regardless of the circumstances.
