One less thing to worry about – protect your finances and your health.
One of the great advantages of modern technology is an increased longevity as well as allowing more people to survive once-fatal medical conditions. However, the unfortunate reality is that many survivors must bear a heavy financial burden for medical treatment, health care, and maintaining quality of life. Your health could actually have a greater impact on your savings than the performance of the market. Fortunately, there are solutions that can help address these issues.
Critical Illness (CI) insurance can provide you with a tax-free lump sum if you are diagnosed with and survive a covered medical condition, such as heart attack, stroke, or cancer, among others. This type of coverage could prove invaluable if a serious illness strikes. Proceeds can be used at the individual’s discretion, for example, to help fund your treatment, pay off a mortgage or other debts, or allow a spouse or family member to take a leave of absence from work. Many Canadians are seeking treatment outside Canada or paying out of pocket for treatment and drugs that are not currently covered by government health care. CI helps to preserve capital by avoiding the premature withdrawal of savings (especially your RRSP which would have premature tax implications) in order to pay those or other costs associated with your recovery.
Long Term Care
Long Term Care (LTC) insurance specifically addresses the costs associated with receiving care at home or in a facility. LTC provides the service and support necessary to maintain day-to-day care should a chronic illness or cognitive impairment keep you from being able to perform the activities of daily living. With facility-based individual long term health care across Canada costing in the tens of thousands of dollars annually and financial support from governments shrinking, this type of protection can ensure quality care without placing undue pressure on family members.
You are working hard to earn income to give your children an education, to build a strong investment portfolio, and to create the lifestyle you want to live. What if that employment income stream was suddenly not available? The risk of becoming disabled for a significant period of time before 65 is actually higher than the risk of dying before 65. A Disability Insurance (DI) policy pays a monthly benefit (replacing a portion of your income, depending on the level of coverage chosen) when the insured is unable to work due to an illness or accident while the policy’s definition of disability is being satisfied.
Many employers provide group coverage, but a personal policy can complement that coverage and address any gaps. If you already have group disability coverage, you may wish to consider supplementing that plan with your own individual DI policy.