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Money Matters

25 March 2019

Critical illness insurance - do you need it?

Critical illness insurance - do you need it?

Recovering from a serious illness can come at a significant cost. If it happens to you, how will you pay for it?

Imagine this: You’ve just been diagnosed with cancer.
While your doctors say your chances of a cure are good, the weeks and months of treatment and recovery you’ll need can come at a high price. Not the surgery or the hospital stay. Not the radiation treatments. But if your spouse has to take several months off work to look after you when you get home, or you’ve been prescribed expensive drugs that your medical insurance doesn’t cover, or you need months of physiotherapy – you’re on your own.

Where will the money come from? You could raid your savings, run up your credit cards or even borrow against the value of your home – all of which have the potential to derail your plans for retirement. Or critical illness insurance coverage can help leave your retirement plans on track.

How does critical illness insurance work?
If you’re diagnosed with one of the conditions covered under your critical illness insurance policy, after the required waiting period you’ll receive a lump sum payment once your claim is approved. You can use that money for whatever you want.

If you have disability insurance or extended healthcare benefits through your employer, it’s important to understand exactly what those benefits cover, and for how long. It’s a good idea to review your disability policy or healthcare benefits in comparison with the features of a critical illness insurance plan. Compare:

  • Maximum benefit amounts
  • Deductibles and waiting periods
  • Employment requirements (i.e., you can't take benefits with you when you leave your job)
  • Percentage of income replaced, and for how long

Wise financial planning takes into consideration not only building your savings, but also protecting it. Reach out to our advisors now to determine how you can have a critical illness insurance to support your overall financial plan.

Money does matter for us to continue living a comfortable life. Talk to our advisor and let them help you plan ahead for a brighter future.