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Gabriel Lalonde
May 25th, 2022

Critical Illness Insurance – The Financial Protection You Didn’t Know You Need

Everyone hopes and wants to stay healthy – after all, health is wealth. But it is not that straightforward. We are all at risk – no matter how minimal – of dealing with a critical illness in our lifetime. That is not exactly good news, but the silver lining here is that most people will recover.

The adverse effects of an illness are what we can all attest to, both on the affected individual and their family. Critical illnesses have derailed the finances of most families, as well as retirement planning. The not-so-lucky ones end up with a permanently-altered way of life. That is why Ottawa Certified Financial Planners advise eligible persons to get critical illness insurance.

It is important not to mix up critical illness insurance with life insurance. The former bears its benefits right when the beneficiary is alive. Instead of leaving a huge amount of money for a loved one, critical illness insurance helps you protect your finances. It offers a safe financial landing spot, enabling you to foot your treatment, recovery, and other medical care bills.

Why should you get critical illness insurance?

Critical illness (CI) insurance will be ideal for anyone considering insurance. With this insurance, you get lump-sum payments if you ever have to deal with life-threatening illnesses. You may also get flexible options for the return of your premiums in the event that you did not experience any life-threatening condition. This option, however, comes at some extra cost.

In essence, it means you get the money you need to treat yourself if you become sick. But if you do not get sick throughout your lifetime, you have the option to retrieve all of your money back. The return date is usually set close to your retirement but can be rescheduled to when you have any major expenses. What you do with the returned money is 100% your decision.

A Critical Insurance Policy gives you the much-needed coverage for expenses that are not covered by the healthcare system. For example, you may have to pay out of pocket for certain drug prescriptions and a few other treatments if you have no critical illness insurance coverage.

Another reason to purchase a critical insurance policy is to prepare for your retirement adequately. You are most likely to eat up your retirement savings while trying to accommodate the costs of an unexpected illness. Why deprive yourself of your dream post-retirement lifestyle when you can just buy critical illness insurance?

You can rest assured of the much-needed financial relief that will prevent you from spending your hard-earned savings, ensuring your retirement plans stay on track.

To Wrap Things Up…

If you are a high earner or a spouse to a high wage earner or your profession is a high-risk job with no disability insurance, you should strongly consider a critical illness insurance policy. The same goes for anyone who is worried about not having sufficient income to properly handle their critical illness costs that are not covered by their traditional insurance.

Major illnesses can crush dreams if there is no financial protection in place. Speak to an Ottawa CFP today to learn how you can get the best out of your CI policy and live a long, healthy, and enjoyable life.

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