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Critical Illness

Protecting your income stream is important to most business people… your family’s lifestyle depends on it. That protection can come in the form of savings or insurance. While many people think that they can sustain a short bout of illness, insurer statistics show that a typical disability will quickly erode the savings and RRSP’s of the most prudent saver… so having a contingency plan if you become sick becomes a fiscal imperative.

One component of a contingency plan could be a Critical Illness insurance policy which pays a lump sum benefit when you become diagnosed with one of the covered conditions. You choose the amount of benefit and you choose how you use the money… you can even choose a rider that will return all your premium when the policy terminates! The amount of coverage is not tied to your income, no financials are required for underwriting and you don’t even need to be reporting income to get a policy. This is a big plus for business owners who are keeping their reportable income low or who may be new in business without a financial track record.

The 3 conditions that are the highest claim factors are cancer, heart attack and stroke. If you do meet the conditions for a claim, you use the benefit as you wish… seek medical treatment in the US, pay off debts, go on a vacation or use it for daily living expenses… you choose. The entire amount is paid in a lump sum and the policy can be owned personally or corporately and the benefit is TAX FREE!

As a critical illness policy is underwritten for your likelihood to make a claim, your current state of health and the health of your immediate family members are considered for medical hereditary significance. This has been a barrier to standard coverage for some people… but a new class of policies has emerged. These are guaranteed issue or simple issue policies which exclude pre-existing conditions from coverage but which require no medical underwriting. Just a simple declaration of good health!

Its protection made easy and once you are approved, you keep the policy up to age 75, regardless of any changes in your health or occupation. If you choose the Return of Premium Option, your policy is a Win/Win – if you need to claim, your benefit is TAXFREE or if you never need to claim, at 75 you get 100% of your premiums back TAXFREE!

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