The benefits of critical illness insurance unearthed

It’s a difficult subject — no one likes to think about getting sick. But unfortunately, most of us will have to deal with a serious illness or injury at some point in our lives.

The good news is that, with all the advances in medical science, our chances of recovery are better than ever.

For example:

• 73% of men and 77% of women who develop cancer will survive;

• 86% of heart attack victims admitted to hospital survive;

• 75% of stroke victims survive.

More so than ever before, medical science and technology have made it possible for thousands of critical illness victims to survive and resume a meaningful lifestyle. But what of the unforeseen challenges that must be faced as a result of a protracted recovery period or physical disability?

Depending on your lifestyle and family needs at the time of your illness, you may face a host of unforeseen financial consequences. Work missed during your recovery period might result in loss of irreplaceable household income. You may have to consider a career change or retrain for a new occupation. Or you may have to withdraw funds from your retirement savings to pay for any necessary home renovations or to stay at a treatment facility. If you own a business, how would it cope if you had to spend a long time away?

Planning ahead with critical illness insurance

When you’re sick, your main focus is on getting better. The last thing you want to be worrying about while you recover is the impact on your finances.

Unfortunately, you can’t necessarily count on the government health-care system, which is increasingly under strain. Government health-care benefits may not be enough to ensure you receive the timely care and financial assistance you may need.

That’s why it makes sense to plan for it ahead of time by ensuring you have adequate critical illness insurance. Critical illness insurance is designed to help finance your expenses so you don’t need to tap into your retirement savings or other investments and jeopardize your longer-term financial goals.

It provides a lump sum payment after 30 days of being diagnosed with a covered condition such as stroke, heart attack, or cancer. There are up to 25 different conditions that may be covered and they vary depending on the insurance company providing the coverage. Once the tax-free lump sum benefit is paid, you are free to use the funds any way you see fit.

What if you don’t ever need critical illness insurance? There are options available for a return of premium. If you never make a claim, your premiums will be returned when the policy expires.

Helping you get the care you need

Some insurance companies provide access to the Best Doctors program, a world-renowned program that specializes in linking clients and their doctors to the best medical facilities available in the world.

Best Doctors can help arrange a review of your medical records by world-class health professionals who validate the diagnosis and make treatment recommendations.

They are there to find the best specialists and treatment facilities anywhere in the world. If you choose to seek care outside of Canada they will make arrangements for transportation, accommodations and book medical appointments.

Critical illness insurance is designed to protect your assets when it’s needed most.

This article was supplied by Colin MacAskill CFP, CIM, a Financial Planner and Investment Advisor with RBC Dominion Securities Inc., the Wealth Management Arm of the Royal Bank. Member CIPF. Colin welcomes your calls on his direct line at 604-257-7455.