Surviving a critical illness
Speaking of living longer lives, more and more Canadians are also surviving a critical illness such as cancer, a heart attack or a stroke - illnesses that often occur in the prime of life. While surviving is obviously wonderful news, it may mean extra expenses for you and your family that are not covered by the most common types of insurance.
Life insurance pays out a lump sum to beneficiaries on your death, while disability insurance replaces an income stream when you can no longer perform your normal work duties due to a disability. But how do you fund the cost of medical treatment not covered by provincial health plans, or a badly needed vacation in the wake of a serious, life-threatening illness?
Lump sum to spend as you wish
This is where critical illness insurance comes in. Critical illness pays out a tax-free lump sum if you are diagnosed with a severe illness and survive a certain period, usually 30 days. No disability - permanent or otherwise - is needed to qualify for the payment. And there are no restrictions whatsoever on how you spend the money. You can use it to pay off debt, fund your children's education or retrofit a car or house.
Another option for families is critical illness insurance for children. The lump sum paid out if a child came down with a serious illness could be used for expenses such as housekeeping and the care of other children while parents spend time at the hospital.
Keep in mind that the illnesses and conditions covered by critical illness insurance vary by policy. Typically, these include cancer, heart attack, stroke, Alzheimer's, Parkinson's and multiple sclerosis, but it's important to look closely and compare.
Just one component of your plan
Remember, too, that critical illness insurance serves as just one component of a comprehensive insurance plan structured to protect you against a range of risks and needs. It is not a substitute for disability or life insurance.
Dealing with a critical illness is painful enough without the financial worries that it can create. Give us a call to review your overall insurance plan. We will help you assess and manage the financial risks that could unnecessarily derail your dreams.
This Report is written by Investment Planning Counsel, a fully integrated Wealth Management Company. Mutual funds available through IPC Investment Corporation and IPC Securities Corporation. Securities available through IPC Securities Corporation, a member of CIPF. Insurance products available through IPC Estate Services Inc. Mortgage broker services provided by IPC Save Inc. (ON Lic. #10227).
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