We all want health, wealth and happiness, but without health, your wealth will decline right along with your happiness.
Life insurance may pay your beneficiaries when you die, and disability insurance kicks in if you are unable to work. However, one looming possibility we all face is that of a critical but non-fatal illness such as cancer, a heart attack or stroke.
The Heart & Stroke Foundation of Canada estimates that 1 in 4 Canadians will have a heart condition in their lifetime, and that each year 75,000 Canadians have a heart attack. According to the National Cancer Institute of Canada, 1 in 3 will develop a life-threatening cancer.
Other studies show that 1 in 4 Canadians will suffer from a stroke-related illness; 1 in 4 will suffer from kidney disease; 50,000 Canadians have multiple sclerosis; and 30,000 Canadians are paralysed.
All told, 1 in 3 Canadians will contract a critical illness during their lifetime. A sobering statistic, indeed.
The good news is, thanks to modern medicine and technological advances, it's highly likely you will survive such an affliction. For example, 95 per cent of first-time heart attack victims and 75 per cent of stroke victims survive.
The bad news is, your finances probably won’t make it, as survival doesn't necessarily equate to a happy ending.
"I got into this business because I noticed a huge void in Canadians' insurance-coverage habits," says critical illness insurance specialist Lavana Fitzgerald, who represents Financial Management West.
"People generally have life insurance to take care of the family in case of death, but, these days, most people don’t die from heart attacks, strokes and cancer – and the increased cost and financial burden from surviving a critical illness can be devastating."
Living with a critical illness often translates to major changes in your lifestyle and serious financial challenges – if you are not prepared.
The recovery period and expenses following a critical illness or debilitating injury can have terrible financial consequences, including lost income, huge medical costs, ongoing and emergency medical expenses, and much more.
Many Canadians turn to redeeming RRSPs in order to bridge the gap. In 1999, for instance, 42 per cent of all RRSPs cashed were directed to covering the costs of major illnesses.
A lot of people will read this story and simply carry on gambling with their families' futures. But others will take a minute to make a call – a call that will give you peace of mind and, more important, an opportunity to safeguard you and yours from financial hardship brought on by all-too-common critical illnesses.
That call goes to Lavana Fitzgerald, whose expertise can make a world of difference should you be confronted with a serious illness.
“Wouldn’t it be nice to be in a position where if you, or your spouse, were struck by a critical illness, you could afford to immediately board a plane and go anywhere in the world to get the best treatment available?” asks Fitzgerald.
“You can wait months for your treatment in Alberta, and studies have shown that every two weeks’ wait after being diagnosed with cancer decreases your chance of survival by 10 per cent.”
With critical illness insurance, you receive a large lump-sum, tax-free payment – generally 30 days after diagnosis, that can put your mind at ease and vastly improve your prospects for a continued healthy, productive life.
“Critical illness insurance fills the gap between disability and life insurance, and if you know anyone who’s been through the experience, you know that gap can be very large,” explains Fitzgerald.
With critical illness, you don’t have to be disabled to collect, and Fitzgerald even offers a money-back guarantee.
“If you die, your beneficiaries get all the premiums that were paid, and if the term ends and there was no claim, in many cases, you or your company can get back all the premiums,” she explains.
Critical illness insurance is a good fit for small businesses, facilitating buy-sell agreements, key-person coverage and business interruption/termination.
For individuals, you can use it to pay down mortgages, offset lost income, for child care and housekeeping, home care, illness-related home renovations, and to provide ready cash for expensive drugs and treatments.
For more information on critical illness insurance, call Lavana K. Fitzgerald at 246.5898 or e-mail criticalillness@stirlingbond.com
