RISING WOMEN EXPERTS...

What does critical illness insurance mean for my family’s financial security?
    By Jim Coleman of Raymond James Ltd.

It’s rather frightening how many people I've met over the years that have no formalized plan on how to deal with an emergency if one did in fact arise. The emergency I’m referring to deals with your personal health or that of a loved one which would prevent either of you from going about your daily routine potentially causing a shortfall in your monthly income. Now emergencies can range in scope and severity and I understand that not all will derail a lifetime of savings, but I’m positive we all know of someone who has been diagnosed with cancer or has had a heart attack and has maybe had to stop working or look to an outside source to help them through a difficult period. So in preparation for this type of event, we try to plan for the worst while always hoping for the best and this is where critical illness insurance can play a key role in helping you strengthen your financial plan.

So what is critical illness insurance? Basically it’s what we call a “living benefit” because you do have to survive 30 days once diagnosed in order to collect the tax free lump sum payout. And why would a person want such a payment...a few reasons are listed below:

1) Genetic Predisposition (i.e. your mother is diagnosed with breast cancer so you want to ensure that you are covered at a young, healthy age...just in case);

2) Seeking treatment outside of Canada;

3) Allow a spouse to take an unpaid leave from work to be at your side;

4) Replace two year’s worth of income

And what illnesses are you covered for? Well, in the majority of cases, the 3 most common critical illnesses are cancer, heart attack and stroke and depending upon the insurance company, there are up to 22 additional illnesses insured. These can range from Alzheimer’s disease to major organ transplant. Another feature that peaks the interest of clients is the ability to receive all of their money back if they never make a claim with the “return of premium” option. For business owners this can be particularly attractive because the premiums can actually be paid for and expensed by the corporation if structured properly.

Jim Coleman is a Financial Advisor with Raymond James Ltd. 403.266.0513 jim.coleman@raymondjames.ca

*The views of the author do not necessarily reflect those of Raymond James. This article is for information only. Raymond James Ltd. is a member of CIPF. Securities-related products and services are offered through Raymond James Ltd., member CIPF. Financial planning and insurance products and services are offered through Raymond James Financial Planning Ltd., which is not a member CIPF.