Plan A: Never get seriously ill in your life. Plan B: Panic?

September 13, 2018

Facing a serious illness is physically, mentally, and financially difficult. You need a real backup plan.

1 in 3 Canadians is expected to face a critical illness at least once in a lifetime. One in 12 Canadians currently live with heart disease, and two in five will develop cancer throughout their lifetime. Despite these statistics, the mortality rate has decreased in the last 15 years according to the Public Health Agency of Canada. Studies show that Canadians are living longer than ever, with the average life expectancy expected to increase to 86 for females and 82 for males by the year 2031.

Serious illnesses can drain your finances in unexpected ways:

As well as being incredibly stressful, serious illnesses can be financially draining. For example, some of the most cutting-edge treatments are not covered by general health plans, while some of the latest healthcare innovations are only available in the US. Those are just the direct costs.

Indirect costs can encompass anything from travel expenses to child care, house cleaning services, and more. Meanwhile, existing debts like mortgages and lines of credit still have to be paid. Unfortunately, most people don’t intuitively know to account for these things when considering their financial plans and contingency scenarios.

Facing a critical illness is a life-changing experience:

The recovery process often includes self-reflection and the re-evaluation of life goals. Perhaps you may decide to quit your job or go on a once-in-a-lifetime vacation. Nobody really knows how they will react to a critical illness until they are experiencing it for themselves. Sadly, given the high occurrence rate of such illnesses, you have no choice but to prepare for the possibility that it could happen to you.

This is where Critical Illness Insurance can help. Once you have been diagnosed, this policy will provide you with a lump sum that you can use in whatever way best fits your needs. This sum is NOT taxable, and once it’s paid, there are no restrictions as to how you can spend it—whether that’s a trip to Bali, or paying off your mortgage.

You may already have Disability Insurance or Life Insurance, or both. So what's the difference?

Disability Insurance is only intended to replace a monthly salary and cover regular expenses; it’s usually not enough to cover extra costs.
Life Insurance is there to help your family reduce financial strain after your passing.
Critical Illness Insurance is a living benefit, meaning that it gets paid out to you (in full) to use for large expenses at-will.

Here's what to look for when purchasing Critical Illness Insurance:

Group Rates: With large groups, the risk is spread out between many individual insureds. That means lower premiums.
Guaranteed Acceptance: Normally, acceptance is dependent on both your personal health history and that of your biological parents and siblings. It can be difficult to qualify. So, if you see an opportunity to get guaranteed Critical Illness Insurance, you should apply.

To discuss your needs and evaluate options available to you, contact PROLINK—Canada’s Insurance Connection at 1-800-663-6828 today. We will interview you and find a solution that best fits your needs and offers the protection you require.

PROLINK’s blog posts are general in nature. They do not take into account your personal objectives or financial situation and are not a substitute for professional advice. The specific terms of your policy will always apply. We bear no responsibility for the accuracy, legality, or timeliness of any external content.