Consider Critical Illness Insurance
December, 2006 – Most Canadians right now live on 103% of their earned income and have little or no savings. Credit is in all time abundance, and buying a house is easier now than it ever has been. The economy is being bolstered by continually lowering interest rates and we are relying more and more on our own abilities to earn an income.
Our ability to earn an income it the number one asset most Canadians have, and protecting it is usually the last thing we think about. In this consumerist era, with the lack of loyalty employers show employees and vice versa, what happens when we have a Stroke, Heart attach or Cancer during our working years?
Who will pay bills and keep our families in the lifestyle that they have become accustomed to when an illness hits us.
The probabilities are very high, and here are the statistics: For every 100 Canadians beginning their careers, before the age of 65
- 13 have passed on
- 11 have annual incomes of $18,000
- 66 have annual incomes between $18,000 and $60,000
- 10 have annual incomes above $60,000
What do we have to do to beat the statistics?
Incidents of survival from critical illnesses are higher that they have ever been, and as technologies and medicines improve, fewer and fewer disability claims will be paid.
- One in three people will be diagnosed with cancer in their lifetime and of those 55% with survive.
- One in four people will suffer heart disease in their lifetime, and 95% will survive their first heart attack; and
- One out of Twenty will suffer a stoke before age 70, and 80% will survive a first stroke.
Due to decreased recovery times allowed in hospitals, and the need of people to get back to work, many suffering people find themselves in the position where they shouldn�t be back on the job but financially they are forced to.
We need to protect our ability to earn an income!
Buying a Critical illness policy, which pays upon occurrence, is important in setting up your financial plan, and is mostly overlooked. Many programs now come with a returned of premium option, so if you do beat the odds, then you get your money back. You essentially are buying money for pennies on the dollar.
Marketing for life insurance, Retirement living, Income trust limited partnerships, differed tax savings accounts and such are all good and well, and if we beat the odds on getting ill, can provide good retirement income, but what happens to all of these strategies when we are the One and Three that becomes critically ill? Who pays our income before retirement?
The crisis is upon us.
Will the Golden Years be Golden?
Will your earning years be unimpeded?
Who will pay your bills and maintain your lifestyle when you�re ill and can�t perform the basic activities of daily living?
Look at a Critical Illness Policy; you�ll not be sorry you did.
Timothy J Simpson CIM
Desjardins Financial Security Independent Network
* Sources: Heart and Stroke Foundation, Canadian Cancer Society, Canadian Medical Association.