In the past few years, I have added the discussion of using critical illness insurance as either a stand-alone product or as complimentary to long-term disability insurance.

 

Critical illness Insurance is a relatively new product that pays out a tax-free benefit upon the diagnosis of three major illnesses: heart attack, cancer, and stroke. Benefits are also awarded for many ancillary illnesses such as Parkinson’s, Alzheimer’s, and organ transplant.

 

The money can be used to seek quicker treatment is the United States or to look after the many unforeseen expenses of an illness. It can also be used to put an infusion of cash into a business to replace a staff member or a key person who may be incapacitated for a long period of time.

 

Many business owners I work with have chosen to purchase one of these policies to supplement the income they receive from their long-term disability coverage, which is lower because the payouts are based on income that has been reduced by expenses written off.