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March 10, 2019

Can I buy just critical illness insurance if I am self-employed?

Can I buy just critical illness insurance if I am self-employed?

Insurance of all types is becoming a standard offering for employment. Health insurance is the best-known, and is a must for attracting and retaining talent. Other forms of insurance are catching on as well. Life insurance, for example, is offered by almost half of all U.S. employers1.

What happens, though, when you don’t have an employer other than yourself? Rather than paying for both life insurance and a critical illness insurance policy, can you buy just a critical illness insurance policy if you’re self-employed?

What Is Critical Illness Insurance?

First things first: What is critical illness insurance?

Where other forms of insurance cover broad circumstances, critical illness insurance is targeted at reducing medical bills from the most common high-impact illnesses. Coverage can vary policy to policy, but most critical illness insurance policies will cover bills resulting from:

  • Heart attack
  • Stroke
  • Organ transplants
  • Coronary bypass2

As with most insurance policies, the holder of the policy pays premiums on a regular basis on the chance they’ll be affected by one of the illnesses covered by the policy. If the worst happens, the policyholder is paid a lump sum to cover hospital bills, travel costs, loss of income, etc. Not every critical illness policy will cover every illness; you should confirm exactly what your prospective policy covers, and how much/when it will pay out before you decide what policy is right for you.

Can Critical Illness Insurance Supplant Life or Health Insurance?

The question, then, is whether critical illness insurance could be a less expensive way to stay financially protected while self-employed. While a critical illness policy could be less costly than full health or life insurance, please be aware it only pays out in very specific circumstances, and would not cover broad costs like annual checkups or prescription medication.

Critical illness insurance is a specialized tool designed to cover very specific circumstances. Please consult with a financial advisor and/or a licensed insurance Agent when deciding how best to protect your health while self-employed.

  1. “Twenty-Three Percent Fewer Employers Are Offering Life Insurance to Their Workers”
  2. “Critical Illness Insurance: What Is It and Who Needs It?” Investopedia,

Categories: Critical Illness Insurance, Supplement Health Insurance

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