Jennifer, age 50, retired early and lives off her investment portfolio. She has no dependents and sufficient savings to cover short-term emergencies. She is concerned about the financial impact of a serious illness, specifically the costs not covered by provincial healthcare, such as private nursing care, home modifications, or experimental treatments. Which insurance product is most suitable for her situation?

Question: Jennifer, age 50, retired early and lives off her investment portfolio. She has no dependents and sufficient savings to cover short-term emergencies. She is concerned about the financial impact of a serious illness, specifically the costs not covered by provincial healthcare, such as private nursing care, home modifications, or experimental treatments. Which insurance product is most suitable for her situation?

Answer options:

• A. A long-term care insurance policy. ✅ B. A critical illness insurance policy.
• C. A disability insurance policy.
• D. An accidental death and dismemberment policy.

Correct answer: B. A critical illness insurance policy.

Explanation: Critical illness insurance provides a lump-sum payment upon diagnosis of a covered illness, which can be used to cover non-medical costs, private healthcare, or lifestyle changes. Since Jennifer is retired and has no employment income to protect, disability insurance is not appropriate, and her need is focused on the immediate financial burden of a serious illness rather than ongoing long-term care.