Critical illness insurance for self-employed workers in Quebec

A self-employed person does not have an employer who continues to pay his or her salary. Critical illness insurance can provide a financial cushion for diagnosis. Here’s how to consider it.

Why self-employed workers are more exposed

Without a group plan, the loss of income often begins as soon as you stop working. Fixed costs (rent, mortgage, insurance, contributions) continue. Employment insurance benefits for self-employed workers may exist under certain conditions and after a delay: validate your situation with Service Canada.

Critical illness and disability: two complementary coverages

Disability insurance replaces part of your income while you are unable to work. Critical illness insurance pays a lump sum for diagnosis. They meet different needs and can be combined.

Choosing the right capital

There are often between one and two years of net income, plus business or personal debts to be repaid. Consider your ability to return to work gradually.

Taxation and deductibility

Premiums for personal critical illness insurance are generally not deductible, and the capital received is generally tax-free. Validate these points with a tax professional depending on your case.

When the activity stops, the expenses continue

A consultant or craftsman who no longer bills for several months must still pay his rent, business insurance, contributions and tools. A lump sum received at the diagnosis helps to get through this period and decide to reduce the workload without panicking.

Example of a combination of coverage

A 40-year-old self-employed person who earns $70,000 a year can choose a critical illness insurance capital of around one to two years of net income, supplemented by disability insurance that pays a portion of the income each month. The exact amounts depend on their profile, debts and other coverage.

Service throughout Quebec

Partner firms registered with the AMF serve clients in Montréal, Québec City, Laval, Gatineau, Sherbrooke, Trois-Rivières, Saguenay and Longueuil, by telephone or online.

Frequently asked questions