Everyone knows that saving is the cornerstone of a solid financial plan. Ever since we are children, our parents are hammering the idea into our brain about putting money away for a “rainy day”. Well there is no bigger rain storm than a critical illness. So instead of passively saving money in a “high interest account” making little-to-no interest, take the bull by the horns and invest a small portion of your savings in a Critical Illness policy.
In the insurance world, a critical illness is often one of the “big four” illnesses: Cancer, heart attack, stroke, and coronary bypass. Some companies, such as Sun Life Financial, have broadened this to include more than 20 illnesses, including things like diabetes, Alzheimer’s, and paralysis.
Everybody hopes that they will never have to deal with one of these diseases, but the reality is that almost half of Canadians will suffer from one of these illnesses at some point in their life. So how do we deal with it financially? It’s unlikely you’ll be able to work (or if you can, you certainly won’t feel up to it). On top of your loss of income, there could be other expenses associated with your disease, such as traveling for treatment or purchasing expensive drugs not covered by government programs. An illness like cancer can be both physically and financially crippling.
While there is little we can do to totally prevent these diseases from happening, there is something very important you can do today to protect yourself from the financial implications of an illness: welcome to the magical world of Critical Illness Insurance (CII).
Instead of stripping your retirement savings bare in order to fund your recovery, you could put a relatively small amount of money towards a CII policy which will pay you a lump sum if you get diagnosed with one of the illnesses covered by the policy. It’s like the flip-side of life insurance; it’s living insurance. This is money you get while you’re alive to help you fight and recover from your illness.
Imagine the comfort of knowing that you can take a year off from work in order to focus on getting well. Think about how nice it is to know that you can travel to the best hospitals in the world with the best doctors in order to give yourself the best chance at winning your battle. This is why Critical Illness Insurance is your new best friend.
Book a meeting with your financial advisor today and ask them for more information about how these beautiful policies work.