The most commonly asked questions, answered
Critical illness insurance for the self employed and small business
The self-employed can take out individual policies rather than business ones. You will have to argue with the taxman as whether or not the policy is a tax-deductible business expense.
Very few insurers offer Critical Illness cover on a business basis to small business owners. Business cover is often in the name of the owner or owners of the business. It is unusual to have a stand-alone critical illness policy. Much more common is a business cover, which includes life and critical illness. This is usually for a set number of years on a decreasing sum insured basis, to cover a business loan or mortgage, should one of the owners die or suffer a critical illness.
Most critical illness insurance is taken out by individuals. The group market is expanding as group cover is often offered as part of a flexible benefits (flex) arrangement, where the employee can choose the benefits package that best suits their personal circumstances.
Group critical illness cover policies are usually taken out by employers for employees, and this is often restricted to directors and management. They are very complicated as there are tax and other legal concerns.