Which of the following scenarios presents the strongest case for purchasing critical illness insurance for a 38-year-old client?

Question: Which of the following scenarios presents the strongest case for purchasing critical illness insurance for a 38-year-old client?

Answer options:

• A. The client has minimal savings, no dependents, and income primarily from fluctuating freelance work. ✅ B. The client has an individual disability insurance policy but no significant emergency fund or family support, and a high-deductible health plan.
• C. The client has substantial personal savings, a defined benefit pension, and a comprehensive group health plan.
• D. The client is retired and receiving CPP/OAS and a private pension.

Correct answer: B. The client has an individual disability insurance policy but no significant emergency fund or family support, and a high-deductible health plan.

Explanation: A client with an individual disability insurance policy covers loss of income, but if they lack an emergency fund, family support, and have a high-deductible health plan, a critical illness diagnosis could still lead to significant out-of-pocket costs and non-medical expenses not covered by disability. CI insurance provides a lump sum for these expenses, complementing disability coverage by addressing the immediate financial shock and non-income related costs of a serious illness.