A 40-year-old entrepreneur, successfully operating a growing tech startup, wants to protect his business and personal assets from the financial impact of a serious illness like a heart attack or stroke. He has key personnel insurance for his business partner. What type of insurance should he consider for himself to address this personal and business risk?

Question: A 40-year-old entrepreneur, successfully operating a growing tech startup, wants to protect his business and personal assets from the financial impact of a serious illness like a heart attack or stroke. He has key personnel insurance for his business partner. What type of insurance should he consider for himself to address this personal and business risk?

Answer options:

• Long-term care insurance
• Disability insurance ✅ Critical illness insurance
• Accidental death and dismemberment insurance

Correct answer: Critical illness insurance

Explanation: Critical illness insurance is the most appropriate for the entrepreneur because it provides a lump-sum payout upon diagnosis of a covered illness, which can be used to cover personal medical costs, lifestyle adjustments, and even business expenses, distinct from income replacement or long-term care needs.