Critical Illness insurance – why you need it
Critical Illness insurance – you need it not because you are going to die, but because you are
going to live … and because you may have illness-related expenses that you may not have
considered.
While you might be surprised at the growing number of Canadians who are being diagnosed
with a critical illness at an increasingly early age, the good news is that medical advances are
increasing life expectancy and there are much brighter prospects for surviving. Check out these
statistics:
70,000 Canadians suffer a heart attack each year and 1 out of 2 heart attack victims is
under age 65 – but 95% survive their first attack*
1 in 3 Canadians will develop some form of cancer – but 65% will survive at least five
years*
After age 55, the risk of stroke doubles every 10 years and 1 out of 20 Canadians suffers
a stroke before age 70 – but 75% will survive it*
Women have a 1 in 9 chance of developing breast cancer – but only a 1 in 27 chance of
dying from it.**
Men have a 1 in 7 chance of developing prostate cancer – but only a 1 in 26 chance of
dying from it**
You might expect that provincial or employee health plans will pay for all the expenses
associated with critical illnesses like these but many are not covered.
The benefits of critical illness insurance are most important during the first few months after
diagnosis when emotions and costs are typically at their most intense. With this type of
insurance, you receive a lump sum cash payment, after a 30 day waiting period after diagnosis
for any life-threatening illness covered by the policy, usually including the most common such as
cancer, heart attack and stroke. The benefit is tax free under current tax legislation and yours to
use any way you wish -- perhaps to pay for expenses not covered by provincial and health plans
like these:
Many drugs or other medical expenses
Private treatment, a nurse, child care provider or housekeeper
Medical treatment outside Canada or in another province
Medical equipment – a wheelchair, scooter or home care bed
Retrofitting your home or vehicle to accommodate a wheelchair or chairlift
Pay off your mortgage, car loan, credit cards, lines of credit or business loans
Avoid dipping into your RRSP or your child’s RESP
You want to be able to focus on recovery not costs – and critical illness insurance can help you
do that at a most critical time. Your professional advisor can show you how critical illness
insurance can complement your other forms of insurance protection and fit into your overall
financial plan.
*Disability Insurance and Other Living Benefits, CCH
**Canadian Cancer Society, 2006
This column, written and published by Investors Group Financial Services Inc.(in Québec – a Financial Services
Firm), presents general information only and is not a solicitation to buy or sell any investments. Contact your own
advisor for specific advice about your circumstances. For more information on this topic please contact your
Investors Group Consultant. Insurance products and services are distributed by I.G. Insurance Services Inc. (in
Québec – a Financial Services Firm). Insurance licence sponsored by The Great-West Life Assurance Company
outside of Quebec.
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